Jingfeng Mingyuan (688368): Talent and patent integration Moat smart lighting prospects look promising
Founded in October 2008, Jingfeng Mingyuan is a leading domestic power management driver chip design company.
Its main business is the development and sales of power management driver chips. The company’s products mainly include LED lighting driver chips, motor driver chips and other power management driver chips.
Main point of view: Relying on talents and patent moats, the power management chip leading company has grown up early.
The core competitiveness of the analog chip industry lies in artificial design and experience accumulation. In the development of more than 10 years, Jingfeng Mingyuan builds a moat based on talents and patents, with a per capita of up to 400 million per year, which has become the leading power source in ChinaManagement Chip Company.
In the next three years, the general LED lighting business revenue will grow at a compound annual growth rate of about 9%.
Under the dual factors of penetration rate and real estate post-cycle, the growth rate of general lighting LED from China in the next 3 years is expected to further change; considering the international market penetration rate for further growth, we expect general lighting LED from 2019-2021 Driver chip revenue was 6.
5.3 billion, with a gross profit of 1.
Technical advantages and average price boost embrace intelligent lighting, and the average annual compound growth rate of revenue in the next three years is about 33%.
We estimate that the revenue from smart LED lighting driver chips for 2019-2021 will be 1.
0.94 million yuan, an increase of 35 in ten years.
12% / 29.
61% / 34.
The gross profit is 0.
0.6 million yuan, an increase of 32 in ten years.
56% / 25.
37% / 28.
Profit forecast and estimation: The company’s operating income for 2019-2021 is expected to be 8.
37 ppm, an increase of 11 years.
16% / 13.
57% / 17.
52%, net profit attributable to mother is 0.
22 ppm, a ten-year increase4.
92% / 15.61% / 23.
Covered for the first time and given a “Neutral” rating.
In the long run, we believe that the company’s growth path will gradually realize the development path of Texas Instruments, the leader in analog chips. With the continuous enrichment of product lines of core human resources, the long-term net profit potential is expected to reach 700 million US dollars.
Risks prompt macroeconomic downturn, intensified trade wars, increased industry competition, systemic risks, etc.