Huiding Technology (603160): Ultra-thin fingerprint identification available for 5G mobile OLED display
Event Overview ① According to the latest forecast of Counterpoint, the sales of OLED smartphones will exceed 6 billion units in 2020, an increase of 46%; ② Huiding Technology’s official website revealed that the world’s first 5G mobile phone equipped with ultra-thin screen optical fingerprint solution OnePlusThe 夜来香体验网 7T Pro 5G McLaren Edition is officially on sale through the US operator’s sales network.
Analysis and judgment: OLED display mobile phones have accelerated penetration, and optical fingerprint recognition chips under the screen are still growing at a high speed.
The company is the pioneer of under-screen optical fingerprint recognition and has become the global leader in fingerprint recognition chips.
According to the company’s official WeChat data, as of December 26, 2019, the company’s under-screen optical fingerprint recognition has obtained 101 brand budget businesses.
Counterpoint predicts that due to the increase in OLED mid-range smartphone products priced between $ 300 and $ 500, global OLED display smartphone displacement will exceed 6 billion units by 2020.
We believe that the optical fingerprint recognition chip under the screen will increase with the expansion of OLED display mobile phones, and the growth path is clear.
The thickness of ultra-thin products is only one tenth of the previous generation, and 5G mobile phones will have sufficient volume advantages in the process of popularization.
5G mobile phones will be “standard” with multiple cameras, capacity batteries, and better screens, but complex antenna designs and component performance upgrades will place higher demands on the phone’s internal space.
The company pioneered the use of ultra-optical design to bring about an order of magnitude reduction in chip solutions. The module thickness is less than 1/10 of the previous generation. At the same time, it does not need to mount a screen, and has better anti-electromagnetic interference performance to reduce mass production by terminal manufacturersBusiness difficulties.
We believe that the company’s ultra-thin fingerprint products will be launched on the market. Based on the technology upgrade, the differences will be further opened up and subdivided to maintain the competitiveness of the company’s core products.
Deeply cultivate the three product lines of intelligent mobile terminals, the Internet of Things, and automotive electronics, expanding human-computer interaction, biometrics, and the Internet of Things platform.
In terms of wireless headphones, the company can provide the industry’s lowest, smallest volume in-ear detection sensor, and provide touch functions. The two-in-one solution has achieved large-scale commercial use.
The car touch solution has been commercialized on GM brand models, and the car-grade fingerprint solution has been introduced into mass production at the same time as mainstream car manufacturers.
M & A for NXP VAS (Voice and Audio Solutions) business is also progressing steadily.
In addition, the company disclosed in the report of the investor exchange meeting in the third quarter of 2019 that the company spends half of its research and development expenses on new products, which will form a strong support for future revenue and gradually drive the company to become a platform-based IC design giant.
The investment proposal is aimed at the company’s high-end products with obvious leading advantages, the price of products is slow, and the maintenance period of high gross profit margin is expected to be longer.
Revenue in 2021 is 65/80/101 trillion; net profit attributable to mothers is 23.
50,000 yuan, the corresponding EPS is 5.
22 yuan, 6.
28 成都桑拿网 yuan, 7.
Maintain target price of 292.
2 yuan unchanged, maintain “Buy” rating.
The risks indicate the macroeconomic growth rate and systemic risk; the expansion speed of the fingerprint recognition under the screen is lower than expected; the company’s new product development progress is gradually expected; the intensified competition in the industry leads to the rapid decline of product prices.