Hetai (002402) Investment Value Analysis Report： Global Intelligent Controller Leads to Add New Growth Pole to RF Chips
Hetai (002402) Investment Value Analysis Report: Global Intelligent Controller Leads to Add New Growth Pole to RF Chips
The company is a leader in 5G Internet of Things, a high-speed growth track, excellent performance and cash flow performance, and superimposed core chip asset blessing, which is a white horse for scarce technology growth in China.
Using segment estimates, 北京养生会所 referring to the Internet of Things, high-quality companies in the core chip field, give smart controllers 45 times PE, which is 16 billion market value, and RF chips 80 times, which is 8 billion market value.
We think the company’s reasonable target city size in 2020 is 24 billion, corresponding to a target price of 26.
37 yuan, the first coverage, given a “buy” rating.
Changhong’s leading IoT intelligent controller.
The company’s main business has been focusing on intelligent controllers for the Internet of Things for 20 years, and it has become a global leader in the field of intelligent controllers.
The company’s revenue and profits have grown rapidly in the past 12 years. The compound growth rate of revenue has reached 24% and the compound growth rate of performance has been 19%.
In 2018, the company’s household appliances, power tools and intelligent controllers accounted for 81% of revenue. Automotive electronics, intelligent buildings and furniture, and intelligent lighting and other controllers accelerated their development.
Deep global expansion will benefit the 5G Internet of Things era.
The intelligent controller is the “brain” of the Internet of Things device. The global market is more than one trillion US dollars, and the ceiling is obviously growing.
The appearance of domestic double faucets is obvious, and domestic faucets benefit from the transfer of global intelligent controller production to China, and domestic faucets are accelerating to become global leaders.
The 5G era will further strengthen the logic of rising prices and prices of smart controllers.
The company’s overseas revenue in 2019H1 has accounted for 71%. The company’s high-end customers, high-end market, and high-end technology strategy are obvious. The operating cash flow ratio has increased from 2% in 2011 to 14% in 2019H1. It is a fast-growing cash cow company.
RF chips open new space for growth.
Subsidiary Kunchang Technology is a core company in the domestic microwave and millimeter wave radio frequency chip field. The radio frequency chip is one of the major breakthroughs in 6G technology due to the modernization of national defense, satellite Internet, and even 5G millimeter wave networking in the future.High learning.
Risk factors: raw material price fluctuation risk; exchange rate fluctuation risk; market expansion fails to meet expectations; goodwill impairment risk; RF chip business development fails to meet expectations; macro environmental risks.
Investment suggestion: The company is a leader in 5G Internet of Things, a fast-growing track, excellent performance and cash flow performance, and 天津夜网 superimposed core chip asset blessings.
Using segment estimates, referring to the Internet of Things, high-quality companies in the core chip field, give smart controllers 45 times PE, or 16 billion US dollars, and 80 times the valuation of radio frequency chips, or 80 billion.
We believe that the company’s reasonable target cities in 2020 will grow by 24 billion, corresponding to a target price of 26.
37 yuan, first coverage, give “buy” rating