2021-11-26 Soochow Securities Co., Ltd. Hou Bin and Yao Jiuhua conducted research on Mega Intelligence and released a research report "Mega Intelligence Review: smart car Business continues to exceed expectations, XR, Edge Computing and other new businesses are ready to start". This report gives a buy rating to Mega Intelligence, and the current share price is 53.1yuan.
Mega Intelligence (002881)
Event: on November 23, Mega Intelligence said on the investor interactive platform that according to the interpretation of the Xinhua News Agency, the development of the concept of meta-universe can not be separated from the support of new technologies such as ARVR, 5G, cloud computing, AI, big data and so on.
Meta Universe drives the demand for technical support such as cloud computing and big data, and 5G and AR/VR may usher in a new opportunity: on Nov.19, Xinhua News Agency published an article decoding Meta Universe, pointing out that as an expansion of real technology, Metasverse needs to integrate AR, VR, big data, artificial intelligence and other technologies to provide an immersive experience. At the same time, as the mirror image of the real world generated by digital twin technology, meta-universe continues to improve the requirements for computing power and visual images, which will drive computing power, AI, interactive technology to cooperate with each other with the support of low-level technologies such as Internet of things and block chain.
High computing power module helps new business type's development, focusing on digital transformation and the all-round development of Wisdom couplet: Mega Intelligence ploughs the field of intelligent module, and the differentiated service of intelligent module + customized solution has won wide acclaim in the market. In June 2021, Mega Intelligent launched the world's first 5G intelligent modules developed based on the Qualcomm Inc 5GSoCQCM6490 platform, the CPU level increased steadily, the maximum core frequency was upgraded to 2.7GHz GPU to Adreno642L,AI super-14Tops computing power, increased the support of Wi-Fi6E, and extended the life cycle to 2028. Mega intelligent 4G and 5G high computing power intelligent modules can provide stable and high-speed network links and CPU/GPU-based intelligent tasks and image processing capabilities for the development of new business type, continue to assist various industries in digital and intelligent transformation and upgrading, and effectively support the development of meta-universe for new technologies such as AR, VR, artificial intelligence and big data.
With the rapid development of the global Internet of things, Mega Intelligent forward-looking layout Intelligent Network connected vehicle business: with the expansion of 5G commercial scale, the Internet of things industry will further develop, and global 5G module shipments will achieve rapid growth. The company continues to expand the application of 5G modules in smart retail, intelligent network combined cars and other fields. At present, the company is the industry's leading provider of vehicle modules and terminals. Mega Intelligence actively grasps the trend of digitization and intelligence in the Internet of things industry, and ploughs intelligent module product research and development, module products are well applied in AR/VR, intelligent network couplet, edge computing, cloud computing, AI, digital economy and other fields; at the same time, the company adheres to customer-centered, continues to deepen cooperation with existing customers, continues to expand the scope of customer groups, and continues to steadily develop the market foundation.
Profit forecast and investment rating: with the steady growth of industry demand, Mega's leading edge in intelligent product technology continues to maintain, we maintain the company's 2021-2023 return net profit forecast of 1.22 EPS 2.05 / 371 million yuan, corresponding to the 2021-2023 PE forecast of 0.66 shock 1.11 10 2.01 yuan, the current market capitalization corresponding to the PE valuation of 80-48-26. Taking into account the company's 4G, 5G and other high-power modules and intelligent connected cars, such as new business type's continuous development, business efficiency has improved steadily, maintaining the "buy" rating.
Risk tips: the development of the Internet of things industry is not as expected; the risk of competition in the industry is intensified; the risk of chip shortage is intensified.
A total of nine agencies have rated the stock in the last 90 days, including six buy ratings and three overweight ratings; the average institutional target price in the past 90 days is 42.18; according to the Securities Star valuation analysis tool, Mega Smart (002881) has a good company rating of 3.5star, a good price rating of 1.5star and a comprehensive valuation rating of 2.5star. (rating range: 1-5 stars, up to 5 stars)
