Lanqi Technology (688008): Memory Interface Chip Leader Jin Catch Server Opens 100 Billion Market
Key points of investment: The company is a global leader in memory interface chips. The main products of the company include memory interface chips, Jincatch server CPUs, and hybrid secure memory modules.
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 company’s DDR4 fully buffered “1 + 9” architecture was adopted by JEDEC as an international standard. Its related products have successfully entered the international mainstream memory, server and cloud computing fields, and occupy a major share of the global market.
The growth of the server market has driven the company’s memory interface chips and server platforms. The growth of global cloud computing has been consistent with a growth rate of 16 in the past three years.
5%, China’s growth rate is about 40%, the growth of memory interface chips stems from the increase in the number of memory segments, the server market will drive the memory chip market to continue to grow.
The concentration of the memory interface chip industry continues to increase. The company and IDT form a duopoly. The company’s DDR5 memory interface chip is expected to come out in 2021, and the company will continue to 夜来香体验网 maintain its leading position.
At the same time, the Jinda server platform, as an advanced secure and controllable trusted server platform, will open up hundreds of billions of markets for the company.
The profit forecast follows the development law of memory chip products. DDR4 products have gone through a heavy volume phase. DDR5 products will be listed in 2021. The company’s memory interface chip products will see a steady decline in revenue growth in the next three years. At the same time, gross profit margins will remain stable.Tianjin catches the server platform preliminary volume in the next three years.
We expect the company’s 19-21 year revenue to be 20 respectively.
56 billion, 24.
88 billion, 31.
1 billion yuan, net profit attributable to mothers is 8 respectively.
73 billion, 10.
07 billion, 11.
9.6 billion yuan.
Corresponding to current expectations, PE is 101X, 88X, 74X, and will not be rated for the time being.
Risks suggest that the progress of DDR5 memory interface chip development is not up to expectations, the server market growth is not up to expectations, and the memory chip market growth is not up to expectations. Sino-US trade frictions are repeated.