The company I am looking at today can be said to be the king of automotive chips in our A-share market. Three years ago, in just 120 trading days, the company's stock price soared from around 13.5 to more than 60 yuan, an increase of 300%.
After that, the company encountered a downward cycle in the semiconductor industry, and the company also fell silent. In the first quarter of this year, the company's net profit rose by more than 200% year-on-year, and there is a trend of the return of the king.
This company is Allwinner Technology, which is listed on the A-share market!
The company is a pure semiconductor technology company, the main products, are developed around the integrated circuit industry.
The highest proportion of revenue is the company's fist product intelligent terminal application processor chip, accounting for 80% of revenue, with a gross profit margin of 32.42%.
The company actively deploys in the application markets of intelligent automotive electronics, intelligent industry, intelligent vision, and intelligent large screen.
After years of business development and accumulation, the company has carried out in-depth cooperation with many leading customers in the industry, including Xiaomi, Tencent, Alibaba, Baidu, State Grid, and China Southern Power Grid, to realize the mass production of various intelligent products and become a major supplier in related market segments.
In the automotive electronics market, the company applies high-reliability architecture, high-definition video encoding and decoding, and artificial intelligence technology to intelligent cockpit and intelligent assisted driving, and realizes the implementation of key technology fields. The company's product line covers various forms of applications such as intelligent vehicle infotainment systems, all-digital meters, streaming media, AR-HUD, intelligent laser headlights, and intelligent assistance early warning.
After reading the company's advantages and highlights, next, we will compare and analyze the key data of the company's financial report to further sort out the company's gold content.
First of all, from the perspective of the profitability of the company,
The company's net profit margin on sales has declined rapidly since the fourth quarter of 2022, and even entered negative territory for a time.
In the first quarter of this year, the company's net profit margin on sales climbed sharply, returning to a level close to two years ago. And it is significantly ahead of the average net profit margin of the industry.
It can be seen that the company's profitability has reversed rapidly relative to the industry.
From the perspective of the company's operating strength,
In the second quarter of 2023, the company's total asset turnover ratio began to exceed the industry average. This trend continued into the first quarter of this year.
It can be seen that although the company's profitability has declined during the industry decline cycle, the business scale has achieved contrarian growth. And this year's profitability has also seen a rapid reversal. The company's comprehensive strength is expected to grow further and increase earnings.
And from the company's financial situation,
The company's debt-to-asset ratio is significantly lower than the industry average. The average debt ratio of the industry is roughly 25%. The company's debt ratio remains at around 15%. Financial leverage is significantly low.
Lower financial leverage means greater risk resilience and the actual gold content is often higher.
On the whole, the company's core highlight is that its layout and growing market size in the field of automotive electronics are expected to benefit from the outbreak of the smart car market. What needs to be paid attention to now is whether the company's profitability of this year's rapid reversal can be sustained or short-lived.
Which company in the automotive electronic chip sector are more optimistic, welcome to leave a message below to discuss!