Lanqi Technology (688008): The world leader in memory interface chips
The company went public according to the first criterion.
The estimated market value is not less than RMB 1 billion, the net profit in the past two years is expected to be positive and gradually the net profit is not less than RMB 50 million, or the expected market value is not less than RMB 1 billion, and the net profit is positive and operating income in the latest yearNot less than RMB 1 ppm.
Leading global memory interface chip company.
Lanqi Technology is a chip design company that provides chip solutions in the field of cloud computing and artificial intelligence. Its main products include memory interface chips, Jincatch server CPUs, and hybrid secure memory modules.
Lanqi Technology is one of the only memory interface chip companies in the world that has passed the chip certification.
In 2018, Lanqi Technology accounted for 46% of the global memory interface chip market, sharing the market with international giant IDT.
The company’s revenue has grown steadily, and its gross profit margin has remained high.
From 2016 to 2018, the company achieved operating income8.
400 million, 12.
3 ‰ and 17.
600 million, CAGR reached 44%; net profit attributable to mothers was 0.
900 million, 3.
500 million and 7.
400 million, CAGR reached 185%.
The company’s comprehensive gross profit margin has maintained a high level in the past three years, and was 51 in 2016 and 2017, respectively.
5%, the gross profit margin increased to 70 in 2018 due to the divestiture of the low-margin consumer electronics chip business.
The memory interface chip technology is leading, and the self-developed architecture has become an international standard.
The company has been deeply engaged in the field of memory interface chips for ten years and has become one of the world’s major suppliers that can provide complete buffered / semi-buffered solutions from DDR2 to DDR4 memory. The self-developed DDR4 fully buffered “1 + 9” architecture was adopted by JEDEC asInternational standards.
The company has now completed the first generation of DDR5 engineering chip chip tape and functional verification, the indicators are in line with expectations, is expected to complete the first generation of the first generation of DDR5 memory interface chip production 杭州夜网论坛 version of the development work.
Cooperate in research and development of server platform and open up 100 billion market.
X86 processor, Tsinghua University Dynamic Security Monitoring Technology (DSC) and Lanqi Technology’s memory monitoring technology can realize chip-level real-time security monitoring functions.
Jinchai server platform is aimed at internal server OEMs and provides a complete solution based on Jinchao CPU. It has now entered the market promotion stage.
In 2018, the size of the x86 server market exceeded 100 billion yuan a year, and the future prospects of Jincatch server platform are expected.
Profit forecast and estimation.
We estimate the net profit of Lanqi Technology to be 9 in 2019.
8 ppm, taking into account the historical range of US stock IDT and the average PE estimation level 深圳桑拿网 of A-share semiconductor design industry in 2019, we believe that the company’s PE range is 35-40X, which corresponds to a reasonable market value space of 343-392 trillion.
Assume the total share capital of the company after the issue is 11.
300 million shares, the corresponding price range is 30.
Risk Tips (1) The risk of research and development breakthroughs and technological breakthroughs in the generation of DDR5 memory interface chips is lower than expected.
(2) Risks of downstream market demand for memory interface chips and server platforms being less than expected.
(3) Intel, as a server platform supplier, risks affecting product supply and pricing.