Lanqi Technology: Leading Memory Interface Solution Focuses on Cloud Computing and AI

Lanqi Technology: Leading Memory Interface Solution Focuses on Cloud Computing and AI

Investment points: divestiture of consumer electronics business, focus 西安耍耍网 on memory interface chips, and expand to server platforms.

The company was founded in 2004 and mainly provides chip-based solutions for cloud computing and AI. The current products include memory interface chips, Jincatch server CPUs, and hybrid secure memory modules.

The company is one of only three suppliers of memory interface chips in the world.

In 2017, the company divested its consumer electronics chip business, including set-top box chips and WIFI chips, to focus on memory interface chip related businesses.

At the end of 2018, a server platform was launched based on self-developed CPUs and hybrid secure memory modules.

The company has no controlling shareholders and actual controllers. The largest shareholder is CLP Investment Control and its shareholding ratio.

9%.

Revenue and net profit increased rapidly, 北京spa会所 gross margin expanded upward, operating cash flow was stable, and R & D investment ratio was high.

The company’s revenue has maintained steady and rapid growth, and its revenue in 2018 was 17.

600 million, the growth rate in the past two years was 45.

3%, 43.

2%.

Net profit showed explosive growth, returning to mother’s net profit for 73 years.

700 million, the growth rate in the past two years were 273% and 121%.

The gross profit margin is on the upward channel, which was 51 in the past three years.

2%, 53.

5%, 70.

The 5% increase in 18 years was due to the decentralized consumer electronics business. The high gross profit margin also reflects the company’s memory interface chip has a strong competitive advantage and profitability.

The operating cash flow in the past three years was 3.

8.7 billion, 2.

27 billion, 9.

6.9 billion.

R & D is the company’s core driving force. The proportion of R & D in revenue in the past three years was 23.

5%, 15.

3%, 15.

7%, at a higher level.

Autonomous architecture transforms international standards, and technology gradually advances industry barriers.

The memory interface chip is the core logic device of the server memory module, mainly to solve the problem that the high processing speed of the server CPU does not match the memory storage device.

The company now offers complete buffered / semi-buffered solutions from DDR2 to DDR4 memory.

The self-developed DDR4 fully buffered “1 + 9” architecture has been adopted as an international standard by JEDEC (the leading standard organization of the global microelectronics industry), and has mastered the important voice of the industry.

With the continuous iteration of DDR memory, the industry’s technology-driven attributes have led to rising competition barriers, and the leading aggregation effect has become apparent.

There are a large number of 10 industry participants in the DDR2 stage, and there are currently only 3 suppliers entering the DDR4 stage.

In the future, we will continue to deepen product technology reorganization and lay out new momentum for the growth of AI chip reserves.

From the perspective of fund-raising projects, the company will further strengthen its technological advantages in DDR4 in the future, and promote the development and industrialization of the next-generation DDR5 memory chip interface.

At the same time, it has the technology and talent reserves in high-speed, low power consumption, memory chip design, and comprehensively deploys the functions of AI chips for cloud data centers.

The company adopts the first set of listing standards (market value + net profit / income), and it is recommended to use PE conversion.

Considering that the company is in a high-speed growth stage and has excellent profitability, it is recommended to use PE estimation.

risk warning.Beware of the single risk of product structure;