Zhaoyi Innovation (603986) Semi-annual Report of 2019 Comment: Q2 Results Turning Point Appears, Platform Enterprises Meet the IOT Era
Event: The company released its semi-annual report for 2019 and achieved revenue of 12.
20,000 yuan, an increase of 8 in ten years.
63%, net profit is 1.
87 trillion, down 20 a year.
Comment: Q2 performance inflection point appeared, revenue and profit from negative to positive single quarter, the company’s 2019Q2 revenue 7.
460,000 yuan, an increase of 31 in ten years.
98% (down 15 in the first quarter quarter.
73%); net profit attributable to mother 1.
48 ppm, an increase of ten years.
43% (down 55 in the first quarter).
The company’s Q2 revenue and profit change from negative to positive each year, mainly due to the strong downstream demand of the company’s main products, NOR and MCU, and the company’s scale and volume have grown significantly.
Looking forward to the second half of the year, we believe that the price of NOR has basically bottomed, wearable demand for TWS headsets and other products is strong, and the company’s NOR products are continuously upgraded. It is expected that the volume and price will rise in the future.MCU product portfolio, competitive advantage is more obvious.
We believe that the company has returned to the high growth channel and future development is worth looking forward to.
Established three business divisions to build a “storage + MCU + sensor” platform-type enterprise On May 31, 2019, the company completed the acquisition of 100% equity of Siliwei.
Based on the existing storage business and MCU business, the company integrates the newly added sensor business based on touch and fingerprint recognition. At the same time, the company completed the adjustment of the organizational structure, established three major business units of storage, microcontroller, and sensor to create a platform-based enterprise.Create integrated solutions for storage, control, sensing, interconnection, and edge computing, committed to ushering in rapid development in the era of the Internet of Things.
Storage: NOR demand is strong, 55nm products are worth looking forward to benefit from strong demand for wearable products such as TWS headsets, NOR prices have basically bottomed out.
Looking at the monthly revenue of Taiwan’s storage vendors, Wanghong’s revenue in May, June and July increased 30% from the previous month.
6%; Winbond’s revenue growth in May, June and July was 2 quarter-on-quarter.
The company continuously upgrades its products to optimize its product structure, develops to 128M and other high-capacity, and the manufacturing process to 55nm wavelength.
The company has launched the smallest package in developing countries for the Internet of Things, wearables, and consumer products1.
5 mm x 1.
5mmUSON8 low power wide voltage product line.
Wearable products such as TWS headsets have strict chip size requirements. The 55nm process can further reduce the chip size. The company’s 55nm products are expected to be launched in the fourth quarter of 2019, which will help the company to further capture the market share of wearable products.
256Mb, 512Mb and other high-reliability and high-performance products launched for industrial control, automotive electronics, etc .; and certified according to the AEC-Q100 standard for the full range of GD25 products. It is currently the only nationally produced car-specific flash memory product for automobilesThe front-loading market and specific applications that require automotive-grade products provide high-performance and high-reliability flash memory solutions.
In addition, in terms of NAND Flash products, the company’s high-reliability 38nm SLC process products have been steadily mass-produced, 24nm process products are being developed, and small and medium-capacity NAND Flash product series and corresponding eMMC solutions are further improved.
MCU: Accelerate domestic alternatives and actively create “MCU department stores” MCU products have many types and are widely used.
It does not exceed the huge and complex application ecology, which is a fragmented market.
MCU competition is fragmented, and domestic manufacturers have produced domestic substitution capabilities in consumer electronics products such as mobile phones.
In 2018 China’s ArmCortex core MCU market, the company’s market share ranked third, reaching 9.
Affected by the Sino-U.S. Trade friction, the Huawei incident, etc., the domestic replacement of MCUs is accelerating.
The company actively builds “MCU department stores”, with a rich product portfolio, and constantly enhances its competitive advantage.
The company’s MCU product number has gradually exceeded 300 million, and the number of customers exceeds 20,000. Currently, it has more than 330 product models, 23 product series and 11 different package types, which can cover entry-level, mainstream, and enhanced developmentApplication requirements.
The company actively builds three types of MCU products, namely pure logic MCUs, eNVM MCUs and eRF MCUs. The company expects to release the first products to join WiFi connection in 2020.
In addition, the company successfully developed the world’s first general-purpose RISC-V MCU GD32V product series, innovatively 南京桑拿网 developed a general-purpose MCU using the RISC-V architecture core, and provided customers with complete integration, development kits, solutions and other support. The application covered the Internet of Things.Industrial control, intelligent terminal and other fields.
Sensors: The research and development of the under-screen fingerprint recognition chip is progressing smoothly. It is expected that in the second half of the year, the penetration rate of under-screen fingerprint recognition solutions will increase rapidly under the development trend of smart phone OLED full-screen development.
As one of China’s leading optical screen fingerprint recognition manufacturers, Slim Micro has launched the second generation of optical screen fingerprint recognition solutions. It is expected to launch ultra-thin optical screen fingerprint recognition solutions in the second half of 2019 to usher in the era of 5G mobile phones.
In addition, the company’s original CSM packaging solution can expand and reduce the area of the fingerprint recognition module under the screen. It is currently being verified by downstream brand mobile phone manufacturers.
Profit forecast, forecast and rating company establishes “storage + MCU + sensor” platform-type enterprise, strong demand for storage products, acceleration of domestic substitution of MCU products, and expresses a slight increase in performance, we raise the company’s net profit forecast for 2019-2021They are 5.
3.9 billion (last time was 3.
6.9 billion), according to the latest equity, EPS is 1.
31 yuan, upgrade the company rating to “buy” rating.
Risk reminder: potential risks in the semiconductor industry, new product development is less than expected, and increased competition in the industry.