Lanqi Technology (688008) New Share Analysis: Global Leader in Memory Interface Chips Deploys New Platforms to Create New Growth Points

Lanqi Technology is a global leader in memory interface chips, with high industry certification barriers and a highly concentrated market.

The company’s market share has continued to increase and its gross profit margin has performed well.

Although downstream demand is under pressure in the short term, it is optimistic about the long-term development logic.

At the same time, if the server platform can be breakthrough, the performance is expected to exceed expectations.

Lanqi Technology is the global leader in memory interface chips: Lanqi Technology’s main products currently include memory interface chips, server servers and hybrid security memory modules.

The invented DDR4 fully buffered “1 + 9” architecture was adopted by JEDEC as an international standard, and its related products occupy a major share of the global market.

The company’s 2018 revenue was 17.

5.8 billion, 44 years of composite carbonization.

At the same time, thanks to the company’s divestiture of the consumer electronics business, the company’s gross profit margin also improved significantly in 2018.

The company has no actual controller, and international giants such as Intel and Samsung participated in 2016.

The short-term demand pressure does not change the company’s long-term development logic: the memory interface chip is the axial direction connecting the server CPU and memory, the certification barrier is high and the market is highly concentrated.

At present, there are mainly three DDR4 interface chip suppliers. Among them, Lanqi Technology has a market share comparable to IDT, and Rambus has a relatively small volume.

Although the current downstream and downstream demand is not good, we expect the market demand to pick up from 2020. At the same time, with the upgrading and restructuring of the DRAM architecture, the company expects to launch 2021-2022 mass production of DDR5 connection chips.Leading layout.

The company is expected to usher in a new round of performance growth.

Business analysis: The memory interface chip is steadily developing, and the Jincha platform is ready to go: Lanqi Technology has been committed to the development of high-performance memory interface solutions for a long time.

At the same time, it cooperated with Intel and Tsinghua University to launch a Jincun CPU with dynamic security monitoring and alternative computing.

The company ranks first in the industry, the company’s market share is rapidly increasing, and its revenue is better; its gross profit margin is also ahead of the industry average.

Core competitiveness.

The fund-raising project is launching a new generation of memory interfaces, and the technology upgrade of Jincatch helps to promote long-term development: Lanqi Technology issues new shares1.

1.3 billion shares, raised funds 28.

20,000 yuan.

The raised funds are mainly used to promote the design and development of new generation DDR4 memory interface chips and DDR5 memory interface chips.

At the same time, 杭州夜网论坛 technical upgrades were made to the server CPU and platform of Tianjin ‘s arrest; and further development of AI processor chips and SoC chips for cloud data centers helped the company win the lead in the AI tide.

Estimate analysis: We predict that Lanqi Technology’s net profit attributable to mothers will be 8 in 19/20/21.

29/9.

85/11.

5.9 billion.

Corresponds to EPS 0 after release.

73/0.

87/1.

03 yuan.

Consider the company’s leader in the field of memory interface chips and gross profit performance above the industry average.

Based on the comparable valuation of similar A-share IC design companies and the potential valuation premium of the science and technology board, we believe that a reasonable forecast range is 35-45 times dynamic PE in 1919, with a market value of 29-307.3 billion and a target price 重庆耍耍网 of 26-33 yuan.
Risk Warning: New product development cycle shortens.

The concentration of upstream and downstream is relatively high, and it is easily affected by fluctuations in demand / supply from a single manufacturer.

Poor server market demand has affected expected volumes.

The Jinchao platform is still in the market promotion stage; during the implementation process, it faces many uncertain factors such as technological substitution and changes in the market environment.