Ziguang Guowei (002049) Interim Review: H1 High-Performance High-Speed Growth Special Integrated Circuits and FPGAs Have Broad Prospects

Ziguang Guowei (002049) Interim Review: H1 High-Performance High-Speed Growth Special Integrated Circuits and FPGAs Have Broad Prospects
The rapid growth of H1 performance in 2019 is optimistic about the company’s future development. Maintaining a “strong recommendation” rating company released its 2019 Interim Report: H1 in 2019 achieved revenue of 15.5.9 billion (+48.05%), net profit attributable to mother 1.93 yuan (+61.02%), in line with our previous expectations.At the same time, the net profit range for the first three quarters of 2019 is expected to be 2.88-3.740 thousand yuan, a growth of 0% -30% in ten years.We believe that it is a leading integrated IC design company in China. Through the development of the Internet of Things, cloud computing and 5G, in the context of domestic independent replacement, the company’s smart security chip business, FPGA business and special integrated circuit chip business will continue to achieve rapid growthincrease.It is expected that the company’s net profit attributable to its parent from 2019 to 2021 (excluding the impact of the acquisition of Linxens) will be 4 respectively.67/5.93/7.25 trillion, the corresponding EPS is 0.77/0.98/1.19 yuan, corresponding to 65/51/42 times the PE of 2019-2021 respectively.Maintain the “Highly Recommended” rating. The company’s comprehensive business is growing at a high speed, and the special integrated circuit business is the largest source of profit. From the perspective of the distribution business, the smart security chip business, H1 company’s revenue in 20196.07 billion (+30.32%), with a gross profit margin of 21.84%, a decrease of 1 per year.5 units); special integrated circuit business, benefiting from the number of large customers, the number of contracts, the contract has achieved growth, the company’s special integrated circuit business grew rapidly, is the company’s largest source of profits. H1 company achieved revenue in 20194.9.9 billion (+117.01%), with a gross profit margin of 73.22%, an increase of 12 per year.76 single; in terms of memory business, the company’s DRAM chips continued to maintain stable growth, and the company’s H1 revenue in 2019 37.5 billion (+35.32%); otherwise, the company ‘s crystal business suffered a slight contraction due to the release of the industry and the impact of international trade frictions. In 2019, H1 achieved zero revenue.7.5 billion (-4.62%).In addition, in terms of FPGA, the company actively promotes the application and industrialization of Titan, Logos, and Compact series products. The development of new 武汉夜生活网 generation FPGA products with 28nm process is progressing smoothly. Focusing on IC design, the future development prospects of the three core businesses are broad. The company focuses on IC design, intelligent security chips, special integrated circuits and FPGAs are the company’s three core businesses of integrated circuits.Intelligent security chip business. The synergistic agreement between the company and the proposed Linxens is expected to achieve steady and continuous growth. Benefiting from the general trend of equipment informationization, the company’s special integrated circuit market is further strengthened to achieve continuous growth. In terms of FPGA, the company’s strategic layout has beenZiguang Tongchuang has become a domestic FPGA leader, benefiting from domestic substitution, and there is huge room for growth in the future. Risk warning: M & A progress is not smooth, FPGA product progress is less than expected, and trade frictions intensify