Danghong Technology (688039) Company Research: Super Boom Circuit Core Technology Upgrade Drives Alternative Opportunities
Leader in UHD video, core technology or leading position for 3 years.
The company is rooted in the field of large video, combining online and offline, focusing on four core technologies of video encoding and transcoding, audio and video intelligent identification, video cloud and playback engine, relying on global scarce CPU + GPU encoding and decoding solutions with high technological barriers.High gross profit of core products, achieving low bit rate and high picture quality. At the same time, the company has continued high research and development in the field of continuous algorithm research, core technology or leading advantage for 3 years. It is difficult for new entrants to break through the market, and the company’s core competitiveness is pursued.Constantly tamped.
Ultra HD is a super-boom track for 5G applications. Technology upgrades drive alternative opportunities, and the company’s development accelerates.
From standard definition to high definition to ultra high definition 4K / 8K, the second technological transition is coming, and technology and standards are the key driving forces.
The overseas giants have accumulated profoundly in this field. The company relies on the core team’s 25 years of audio and video technology accumulation, and ranks first in the domestic video coding and decoding technology field.
The policy warmth of the domestic ultra-high-definition video industry is on the rise, and the improvement of network infrastructure such as 5G in the future will also provide fertile ground for the accelerated development of ultra-high-definition video tracks.
Facing Overseas H.
265 patent fees chaos, domestic AVS2 has become the only video encoding standard used in ultra high-definition 4K, often focusing on 4K scenes AVS2 approximate H.
265 has a slight disadvantage, but AVS3 based on 8K scenes is expected to achieve H in the future.
The 266 corner is overtaking.
With the start of a new round of ultra-high-definition video investment cycles in the future, IPTV and OTT are expected to develop rapidly, driving demand for high-end products in the video field and opening up the company’s growth space.
If you consider that the current 50 HD TV channels will all be upgraded to Ultra HD 4K channels in the next 3-5 years, the market space for video codec core components will reach approximately 38?
Ultra-high definition is the cornerstone of VR, cloud gaming, live broadcast, and 5G application expansion to drive the company’s overall demand.
The broadcasting and television field belongs to the professional video field. It has the highest industry-wide requirements for broadcast safety and stability. The expansion of the company’s products in this high-standard area provides a good platform for products to sink into VR, games and other consumer markets.And excellent technical support.
In the future, the company will continue to promote the horizontal expansion of technology, continue to build moats in new areas, and continue to output the company’s core codec 西安耍耍网 products.
The first coverage is given a “buy” rating, and the target market value in 2020 under the PEG method is approximately $ 11.9 billion.
We forecast the company to achieve revenue in 2019-2022.
8.3 billion, 4.
2 billion, 6.
7.9 billion and 9.
6.1 billion yuan, corresponding to the net profit of the mother is 0.
810,000 yuan, 1.
4.2 billion, 2.
6 billion and 3.
At 6.5 billion, the compounded growth rate of net profit attributable to mothers in 2020-2022 will be 60%. Considering the company’s technical barriers and broad development space in the ultra-high-definition video industry, PEG is given a value of 1.
Four times, that is, 11.9 billion yuan in target cities by 2020.
In addition, we expect the company’s long-term market value space under the prudent, neutral and optimistic assumptions to be 19.7 billion, 32.7 billion, and 47.4 billion, respectively.
Risk reminders: technical risks; the progress of industrial investment and policy implementation exceeds expected risks; the risk of bad debts of accounts receivable exacerbates risks; the risk of loss of income.