Jingchen shares (688099) new shares analysis: multimedia smart terminal SOC leader card location smart home core business
Jingchen is a leader in multimedia intelligent terminal SoCs. The company has been engaged in audio and video solutions for many years. Based on the 12nm process, it has launched 4K / 8K and other ultra-high-definition solutions.
Although the company’s performance was not good in the first quarter, driven by factors such as ultra-high-definition phone replacement and increased smart speaker 杭州桑拿养生会所 penetration, its performance is still expected to achieve steady growth.
In addition, leading companies such as TCL, Skyworth, and Xiaomi become shareholders of the company, which can escort long-term development.
The leader in multimedia intelligent terminal SoC, new ultra-high-definition products are worth looking forward to: Jingchen’s main products include intelligent set-top box chips, smart TV series chips and AI audio and video system intelligent terminal products.
The company has maintained rapid growth in the past three years, with revenue of 23 in 2018.
6.9 billion, a compound strength of 27 in the past three years.
However, due to poor market demand for set-top boxes, revenue in Q1 2019 increased slightly.
The company vigorously researched and developed a 4K / 8K solution using a 12nm process, which will lock in advance under the ultra-high-definition trend.
The troika is working hard to secure the core business of smart homes: We believe that smart homes are currently transforming from “single-point smarts” to “connected smarts”, and smart TVs and smart speakers are the best video and voice portals.
Jingchen started from the set-top box market, gradually entered the smart TV and smart speaker market, and created the “core” of the future smart home.
(1) In terms of set-top boxes: The existing IPTV set-top boxes have grown steadily, and OTT set-top boxes have been under pressure in the short term.
However, with the continued increase in penetration and the trend of ultra-high-definition replacement, smart set-top boxes still have a broad market space.
(2) In terms of smart TVs: the number of TV replacements before 2018 was 1.
8.8 billion units, with smart TVs accounting for 27.
71%, the subsequent penetration rate is expected to further increase.
(3) AI audio and video system terminals: The existing smart speakers are still in the early development stage, and demand is rapidly emerging.
Intelligent SoC chip leader, deep binding of downstream customers to achieve a win-win situation: The company introduced a 12nm process technology in 2018, and developed leading intelligent set-top box chips, smart TV chips and AI audio and video system terminal chips based on this. In Xiaomi, Alibaba, Amazon and other global leading companies have been fully adopted.
At the same time, the company is deeply bound with downstream customers. TCL, Skyworth, and Xiaomi replace the company’s shareholders, ensuring the continued stability of the company’s orders.
Ranking MTK, NXP and other participants, the company’s revenue growth rate is divided into grades while maintaining a higher R & D expense ratio.
Raising investment projects to promote product upgrades: The company intends to raise funds15.
1.4 billion US dollars, mainly for the research and development of AI ultra-clear audio and video processing chips, the global integration of digital analog TV standard intelligent main chip upgrade and 8K standard codec chip upgrade projects at home and abroad, to help the company achieve product upgrades and downstream market demand.
Estimate analysis: We predict that Jingchen’s net profit attributable to mothers will be 3 in 19/20/21.
41 trillion, corresponding to EPS 0 after release.
With reference to the comparable valuations of similar semiconductor companies around the world and A-shares, and the potential valuation premium of the science and technology board, we believe that the reasonable estimate range is 37-47 times dynamic PE in 19 years, corresponding to a market value of 127-161 trillion, and a target price of 31-39.
Risk reminder: The company’s net profit attributable to its mother increased negatively in the first quarter. If the subsequent market demand 杭州桑拿 is still not good, the expected performance is potentially at risk; the company’s downstream market products will iterate faster. If chip development is less than expected, it will affect the company’s market competition; customer concentrationHigher; risk of falling inventory prices and falling turnover.