Chengdu Kunhengshunwei's IPO on the Science and Technology Innovation Board has reached the inquiry stage. Although the inquiry feedback has not been disclosed, we may wish to make a preliminary discussion on several key issues.
company is a company mainly engaged in the research and development, production and sales of high-end radio test simulation instruments and meters. The products mainly include wireless channel simulators, RF microwave signal generators, Customized development products and system solutions and modular components, etc. The existing products are mainly for operators and equipment manufacturers such as China Mobile, Huawei, ZTE and Ericsson. Customers provide corresponding services such as radio test simulation. In addition, the company is currently developing radio frequency analyzers, vector network analyzers and other equipment, which are already in the stage of standardized prototype design. In the future, the company’s business is similar to Dingyang Technology, Puyuan Precision Electronics, etc. It is a general electronic measurement Instrument suppliers, and its target competitors in addition to domestic Dingyang Technology, there are international companies such as Keysight Technology.
Difference and homogeneous competition coexist, two major parameters are missing, equipment comparison selection standards are questionable
Kun Heng Shunwei’s main products are wireless channel simulators and RF microwave signal generators, among which wireless channels The simulator is a high-end radio test simulation device developed under the HBI platform. It has ultra-wideband, wide frequency band, and multi-channel support capabilities. Customers can choose different configurations according to their own needs to meet the test simulation needs of Massive MIMO, wireless networking and navigation. The company's wireless channel simulator includes simulation software, hardware modules and signal processing firmware, as well as 3D models, multipath simulation, fading simulation and other wireless channel model simulation core algorithms, indicating that the company has the ability to provide one-stop solutions. In particular, during the reporting period, the company’s KSW-WNS02/02B 48-channel wireless channel simulator became a domestic 5G centralized procurement large-capacity Massive MIMO test simulation instrument.Realized import substitution.
In the prospectus, the company compared the key parameters of this type of equipment with similar equipment of Keysight and Spirent. It can be seen that the main parameters of Kunhengshunwei are equivalent to those of Keysight, and are significantly better than Spirent’s equipment:
Source: Kun Heng Shunwei and Keysight, Spirent equipment comparison, company prospectus, Alpha Economic Research
Kun Heng Shunwei currently has two wireless channel simulators, KSW-WNS02/ 02B is the most advanced one. This type of equipment can be used for Massive MIMO simulation test, phased array antenna test, wireless networking simulation test, MIMO OTA test and semi-physical simulation of satellites, drones, missiles, etc. Testing also has important military value.
Keysight currently has a variety of wireless channel emulators, the device models are F8, FS8, F32 and F64 which is compared with Kunhengshunwei. Keysight also has a Propsim channel simulation aerospace test instrument, which has two sub-models, F8820A and F8800A, used for realistic propagation environment simulation for aerospace and satellite wireless link testing, with the industry’s best signal integrity:
Source: Keysight's Propsim channel simulation instrument, Keysight's official website, Alpha Economic Research
Some of the parameters of F8800A are really against the sky, I don't know if Kun Hengshunwei has the confidence to catch up.
Kunheng Shunwei’s second largest product is the RF microwave signal generator, which is developed based on the HBI platform. It has the characteristics of high-quality in-band signal quality, low out-of-band signal radiation, long-term application stability, and large waveform storage depth. Applications have been realized in the fields of communications, navigation satellites, Internet of Things/Internet/Car Internet, and radar.
The company selected the model KSW-VSG RF microwave signal generator to compare with Keysight’s VXG and Rohde Schwarz’s SMW200A. It can be seen that the relevant parameters are compared. Kunhengshunwei’s products are equivalent to Keysight’s:
Source: Kun Heng Shunwei RF signal generator compared with comparable companies,Company prospectus, Alpha Economic Research
The author thinks that Kun Heng Shunwei has problems in the comparison of signal generator , because it did not select the highest level equipment of Keysight and Rohde Schwarz. , It does not reflect the performance gap, and it is easy to mislead investors. The author believes that the company should learn from the instrument manufacturer Puyuan Jingdian, which is also in the inquiry stage, and compare key parameters such as frequency range, signal bandwidth, and phase noise into high-end, mid-end and low-end gears for comparison. Because as early as 2019, Rohde Schwarz expanded the microwave signal frequency to 67 GHz on the analog microwave signal generator SMA100B, which is at the leading level in the industry. Obviously, there is a big gap between Kun Heng Shunwei's parameter and Rohde Schwarz.
In terms of industry competition, the author compares Kun Heng Shunwei with Dingyang Technology and Puyuan Jingdian. It can be seen that its wireless channel emulator is an exclusive device, forming a differentiated competition with the latter two companies. Dingyang Technology and Puyuan Jingdian both have signal generator equipment. Among them, Dingyang Technology's signal generators are arbitrary wave and radio frequency microwave. The overall level is at the low end of the industry:
Source: Dingyang Technology Products and main performance indicators, Dingyang Technology prospectus collation, Alpha Economic Research
Puyuan Precision's signal generators are mainly arbitrary waveforms, and the products cover low, medium and high-end. In addition, Puyuan Jingdian mentioned that its signal generator has a sampling rate of up to 12GSa/s. Dingyang Technology disclosed that its RF microwave signal generator has a resolution of 0.01-0.001Hz, while Kun Hengshunwei did not disclose these two parameters. I don't know what its true level is.
Puyuan Jingdian is afraid that the neck will get stuck in advance. Is there any domestic substitute for the key raw materials?
Both Puyuan Jingdian and Dingyang Technology have stuck necks, and key chips must obtain export licenses from the US Department of Commerce.
The amount of ADC, FPGA, processor and amplifier purchased by Dingyang Technology from 2018 to 2020 is 17 million yuan, 17 million yuan and 17 million yuan, accounting for 19.33%, 24.55% and 21.78 of the current raw material purchase amount. %.The company has mentioned in the prospectus that the ADCs and FPGAs it purchases are all from American manufacturers. As of the date of signing the prospectus, only and four ADCs produced by Texas Instruments are used in the company’s products in production or in research products. The product and a DAC product belong to the US commercial control list for export control of rabbits, and need to obtain an export license from the Bureau of Industrial Security of the US Department of Commerce:
Source: Dingyang Technology's stuck ADC and DAC chip models , The company’s first round of inquiry feedback, Alpha Economic Research
Puyuan Jingdian prospectus and the first round of inquiry feedback mentioned that a DAC product is included in the US commercial control list, and a license is required for import . Puyuan Jingdian mentioned that the company has obtained a procurement license for 3,600 pieces, which is valid until 2023. The chip is only used for one product of the company. There is no sales record during the reporting period. Two units will be sold from January to June 2021. need.
Dingyang Technology mentioned that the company has obtained licenses for these five chips, four of which will be valid until 2023, and the remaining one will be valid until 2025. In addition, the company actually purchased three ADC and one DAC in these five products. The purchase amount was 196,800 yuan, 1.5198 million yuan and 417,500 yuan, and only two of these five chips were used for specific products and realized Sales.
However, the prospectus mentioned that the company's sales of products using these two chips were 17 million yuan, 10 million yuan and 11 million yuan, accounting for 11.28%, 5.18% and 5.11% of the current revenue. This effect is still Can not be ignored.
Generally speaking, Dingyang Technology and Puyuan Jingdian are similar to Huawei. They have stocked materials in advance. Trade disputes have not had a significant adverse impact on the company for a period of time. But in the future?
Kun Heng Shunwei mentioned in the prospectus that the amount of electronic components and other materials purchased by the company from overseas will increase from 31.82% to nearly 60% of the total purchase from 2018 to 2020.Reliance on foreign companies continues to increase:
Source: Kun Heng Shunwei's risk tips on the import of key core components, company prospectus, Alpha Economic Research
Although the company mentions the risk of getting stuck, the prospectus The purchase amount and quantity of high-end filters and high-end FPGAs are also mentioned in the article, but the company can also make the information disclosure a little more detailed, and make the relevant information disclosure of terminal suppliers more complete.
Through these product types, we also roughly know which ones are supplied by Xilinx and which ones are supplied by ADI . Of course, the company's disclosure is better, so we don't need to guess. In addition, the company can also disclose the domestic substitution of related components, such as the technical level and gap of domestic manufacturers in FPGA, ADC and other fields? How about the domestic substitution capacity?
Finally, I would like to add to Kun Heng Shunwei's revenue and technology. In terms of revenue composition, more than 70% of the company's revenue comes from wireless channel simulators. In the field of wireless channel simulators, China Mobile, Huawei, ZTE, Datang, Ericsson, etc. are all company customers. In the domestic high-end radio instrument market competition, the company already has certain technical advantages:
Source: Kun Heng Shunwei’s revenue composition (by product), company prospectus, Alpha Economic Research
During the reporting period, the RF and microwave signal generator doubled its growth in mobile communications, navigation/satellite, and Internet of Things/ The Internet/car networking, radar and other fields have been applied, and the company also regards it as the second growth point. It is one of the key R&D and promotion products, and it has high hopes. However, combined with companies such as Dingyang Technology and Puyuan Jingdian, the overall technical level is slightly weak, but fortunately the market demand is large, which is also worth looking forward to.
In terms of core technology, Kun Heng Shunwei has developed the HBI platform into a generalized, standardized and diversified product development platform through three stages. Based on the HBI platform, the company has formed a variety of dedicated radio test simulation equipment solutions with "modular hardware platform and moderately customizable software".It can quickly complete the research and development, standardized production and technical iteration of wireless channel simulator products, the research and development and customized production of radio frequency microwave signal generator products, and the research and development of spectrum analyzers, vector analyzers and other products. It has the ability to quickly meet customer personality The ability to test simulation requirements in a customized manner.
At present, Kun Heng Shunwei has mastered 18 core technologies such as high-quality frequency synthesizer technology, digital equalizer algorithm, IQ predistortion algorithm, Massive MIMO simulation technology, etc., involving radio frequency and microwave technology, digital circuit technology, radio test simulation algorithm in real time The four technical fields of signal processing technology and non-real-time signal processing technology form the company’s core technology system:
Source: Kun Heng Shunwei HBI technology platform schematic diagram, company prospectus, Alpha Economic Research
However Limited by the size of the company, its R&D team and R&D investment are small. At the end of 2020, the company employs 48 R&D personnel, including 6 core technical personnel; during the reporting period, the company’s R&D expenses were 60 million yuan, 11 million yuan and 16 million yuan, respectively, and the R&D expense ratios were 9.63%, 10.75% and 12.17%. It is also lower than the industry average (the industry average R&D investment in the prospectus is 17.63%, 19.87%, and 21.79%).
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Disclaimer: The content released by Alpha Economic Research is for reference only and does not constitute any investment advice.
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