Ziguang Guowei (002049): Focusing on the stable development of smart security chip integration business

Ziguang Guowei (002049): Focusing on the stable development of smart security chip integration business
Introduction to this report: Ziguang Guowei is a leading domestic chip design company, and its core business of IC has developed steadily. Investment Highlights: Cover for the first time, give a cautious overweight rating, target price 50.96 yuan.We estimate the 杭州夜生活网 company’s net profit attributable to its parent to be 4 in 2019-2021.66, 5.94, 7.550,000 yuan, an increase of 34%, 28%, 27% year-on-year, EPS is 0.77, 0.98, 1.24 yuan, giving the company 52 times PE in 2020, corresponding to 50 yuan.96 yuan. Ziguang Guowei is a leading chip design company in China.The company’s main business is the design and sale of integrated circuit chips. The main products include intelligent security chips, special integrated circuits and memory chips.In the past five years, the company’s operating income scale has increased from 10.8.7 billion to 24.580,000 yuan, with an annual compound strength of 22.63%. IC core business has developed steadily, and the 5G era welcomes new markets.Intelligent security chip is the company’s largest business with stable operating income.The development of special integrated circuit business has broad prospects and significant 杭州夜网论坛 growth.The 28nm advanced process FPGA test piece will be released soon, and it will be the first to bring the domestic proprietary FPGA into a new generation of process processors.The development of 5G and the Internet of Things has driven the demand for upstream semiconductors, bringing a larger market for smart card chips, FPGA and other services. Acquisition + divestiture, integration of business further strengthened the leading part.1) Acquired Linxens, the world’s largest manufacturer of smart security chip card micro-connectors, to achieve the “security chip + smart connection” layout, enhance the company’s ability to resist risks, and promote the coordinated development of the upstream and downstream of the industry chain.2) The company proposes to divest the memory chip business that is subject to restrictions on manufacturing foundry capacity, etc., to alleviate the pressure on the company’s capital performance and subsequent R & D and promotion, and improve the company’s profitability.Combined with the overall strategic layout of Ziguang Group in the field of warehouses, the need for funds for sustainable development is guaranteed. Risk warning: global semiconductor boom drifts; domestic substitution is less than expected.