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Broadcom Integration (603068): Domestic IC chip design leader benefits from ETC and TWS trends

Broadcom Integration (603068): Domestic IC chip design leader benefits from ETC and TWS trends

Broadcom Integration: Ranked the first echelon of domestic integrated circuit design in the body.

Broadcom Integration, listed on the Shanghai Stock Exchange in April 2019, is a leading domestic integrated circuit chip design company. The company’s main products are wireless data transmission chips and wireless audio chips.

Wireless data transmission chip RF high-speed ETC, UAV flight control, wireless mouse and keyboard, etc., end customers cover Leibo Technology, DJI Technology and other well-known enterprises.

The wireless audio chip adopts the method of wireless communication to realize the transmission and reception of audio signals, mainly in the fields of radios, walkie-talkies, wireless microphones, Bluetooth speakers, Bluetooth headsets, etc. End customers include Motorola, LG, Sharp, Philips and Alibaba.

The company achieved revenue of 5 in 2018.

4.6 billion, net profit attributable to mothers1.

US $ 2.4 billion. Wireless digital chips and wireless audio chips accounted for 40% of revenue in 2018.

72%, 59.

27%.

At present, the company is the largest domestic supplier in the fields of national standard ETC radio frequency transceivers, wireless keyboard and mouse chips, FRS walkie-talkie chips, wireless remote control chips for drones, and Bluetooth audio chips.

The company’s shareholding is concentrated, and R & D investment is valued.

Before the issue, the actual controllers of the company were Pengfei Zhang and Dawei Guo, who indirectly held the company24.

01% equity.

In addition, the actual controller and the parties acting in concert together control the company 42.

83% equity, the shares are scattered and concentrated.

At the same time, the company also has three shareholding platforms, and many employees hold company shares through the shareholding platforms.

From 2016 to 2018, the company’s R & D expenses were 6,488.

690,000 yuan, 6909.

980,000 yuan and 7768.

130,000 yuan, accounting for 12.

39%, 12.

22% and 14.

twenty two%.

The company has 106 R & D personnel, accounting for 80 of the total number of employees.

92%.

The popularity of ETC terminals is accelerating, and the chip market is highly concentrated.

In 2019, the National Development and Reform Commission and the Ministry of Transport issued the “Implementation Plan for the Rapid Promotion of Electronic Non-Parking Express Toll Application Services”, which proposed that the number of ETC users nationwide should exceed 1 by the end of December 2019.

800 million, to achieve full ETC coverage of expressway toll stations, expressway non-stop toll rate reached more than 90%.

We believe that ETC 5 is clearly promoted domestically.

For the 8G platform, the company, as a domestic ETC chip starter and leading manufacturer, tries to continue to benefit, and the leader continues to consolidate.

The company’s core technology: wireless radio frequency communication technology, promising in the era 南京桑拿网 of the Internet of Things.

The outbreak of the Bluetooth headset market has driven the high demand for Bluetooth audio chips, and the trend of smart home has driven the booming Wifi chip market. In 2018, the company’s Bluetooth audio and WiFi products achieved revenues of 22,163.

74, 955.

530,000 yuan, rapid growth, obvious product advantages, and then gradually continue to benefit the development of the industry.

Profit forecast and estimation.

We predict company 2019?
In 2021, the income will be 12.

03, 16.
26, 20.
5.2 billion, net profit attributable to mothers was 2.

67, 3.

85, 5.

00 ppm, corresponding EPS is 1.

93, 2.

77, 3.

61 yuan / share.

Combining the two estimation methods of PE and PS, we carefully consider that the existing company PS (2019) 8

00?
9.

50x interval, corresponding to a reasonable and reasonable value interval of 69.

36?
82.

37 yuan, given a “preliminary market” rating.

risk warning.

1) There may be uncertainty in the national promotion of ETC policies; 2) Bluetooth acoustics market competition may become fierce; 3) New product development may require a large amount of R & D assistance; 4) The company’s multiple businesses are in the expansion stage, and sales costs may riseSlow down the company’s short-term performance