Espressif Technology (688018): Global IoT WI-FI MCU Chip Leading Design Enterprise

Espressif Technology (688018): Global IoT WI-FI MCU Chip Leading Design Enterprise

Espressif Technology: The world’s leading design company of Wi-Fi MCU chips for the Internet of Things. The main business of the company is Wi-Fi MCU communication chips and modules, which have achieved rapid growth in performance in the past three years.

The actual controller of the company is the founder, and there are many well-known companies and investment institutions behind it. The company’s R & D team is excellent. It finds R & D investment and has high-quality customer and supplier resources.

The Wi-Fi chip industry embraces the opportunity of the Internet of Things in the future and usher in a high-speed growth period.

Looking ahead, we believe that the continuous advancement of 5G and the blessing of policies will promote the continued development of the Internet of Things. Downstream smart homes, smart payment terminals, and wearable devices will usher in high-speed growth, driving the core products of communication Wi-Fi chips.growing space.

At the same time, through the continuous penetration of artificial intelligence, Wi-Fi product differentiation and function optimization 杭州桑拿网 will be an important trend, which will help improve ASP.

The company is expected to achieve the strongest in the field of Wi-Fi MCUs. Hengqiang benefits from higher technical barriers, scale barriers and certification barriers. At present, the Wi-Fi chip industry has a stable competition pattern, and Espressif has the advantages of technology and talent teams.Product cost advantages, customer resource advantages and scale advantages, 2018 market share of about 30%, ranking first in the world.

In the future, we expect that Espressif will continue to lead the strongest.

The 19-21 results were 1.

91/2.

75/3.

51 yuan / share We predict that the company’s budgeted earnings for 2019-2021 will be 1.

91/2.

75/3.

51 yuan, we use the price-earnings ratio method to estimate a reasonable price-earnings ratio of 35-40 times, we think the company’s reasonable and reasonable value range is 66.

85-76.

4 yuan, the company is a high-quality Wi-Fi chip design company, in the future is expected to further increase the embrace of industry dividends, increase the level of city share and further open up the growth space.

Risks indicate that the downstream Internet of Things development is less than expected risks; 5G development is less than expected risks; the company’s product advancement does not meet expected risks; intensified competition in the industry leads to risks of falling prices and gross profit margins.