Original title: The house collapsed as soon as it went public? It rose 80% on the first day of opening! The national team and Xiaomi have invested in shares: Can this domestic substitute leader do it?
From the perspective of its active stocking, there may be surprises in 2022.
Author | Guantao
Edit | Xiaobai
Research report summary:
The leading domestic security CIS chip field, the world's largest shipment in the security field in 2020, and the second largest sales in the world;
The chip company founded by Tsinghua high-level students was successfully listed on the Science and Technology Innovation Board in 5 years, with revenue CAGR exceeding 100%;
The only stack structure CIS chip supplier in the field of machine vision at home and abroad except Sony;
deeply binds Xiaomi and SAIC Group, and there is a lot of room for imagination to replace CIS chip imports in the future in the field of smartphones and automotive electronics;
The performance in the first quarter of 2021 has changed and the R&D investment is not impressive.
changed your face when it was launched?
Recently, Fengyunjun discovered a company that integrates various contradictions and one.
This chip company, established in April 2017, was listed on the Science and Technology Innovation Board in just 5 years; in the second year of its establishment, it achieved revenue of 325 million yuan, and then basically maintained its revenue double growth momentum in each year.
In 2021, the company achieved revenue of 2.689 billion yuan, a year-on-year increase of 76.10%, and net profit attributable to shareholders of 398 million yuan, a year-on-year increase of 229%. The revenue compound growth rate from 2018 to this year is 102%.
, but it is also the chip company. In the first quarter of 2022, it is expected to achieve operating income of 396 million to 484 million yuan, a year-on-year decline of 10.4%-26.7%. The previous high growth momentum seems to be completely reversed; the net profit attributable to shareholders is even worse, with an estimated profit of 4.5 million to 20.45 million yuan, and fell 70.2% to 93.4% year-on-year.
Many investors are yelling, it’s really trash! The performance has changed when it first went public!
is still this chip company. The list of shareholders before listing is full of stars: National Integrated Circuit Fund Phase II, Xiaomi Industry Fund, Sequoia Capital, Haitong Securities... There are as many as 40 institutional shareholders.
New stock inquiry stage, Western Securities Ruihe No. 1 even reported a "sky-high price" of 960 yuan per share. Although finally claimed to be an operational error, , after removing a 0, it also had 96 yuan per share.
However, the final issuance price of the chip company is only 31.51 yuan per share, with the actual total fundraising amount of 1.261 billion yuan, and even half of the planned fundraising amount of 2.82 billion yuan has not arrived, and the fundraising has been severely reduced.
Based on the actual total amount of funds raised, the total valuation after fundraising is 12.6 billion yuan, and the pre-raised valuation is about 11 billion yuan.
You should know that in October 2020, the company's last round of financing before listing was also 11 billion yuan.
This basically means that if the price is right, ordinary investors will get the opportunity to buy at the bottom of the investment institution, so can Stywei (688213.SH) play?
Tsinghua top students start their own business. If they fail, they will do it again!
The full name of Styway is Styway (Shanghai) Electronic Technology Co., Ltd., but Fengyunjun first wants to introduce another company - Jiangsu Styway Electronic Technology Co., Ltd. (hereinafter referred to as "Jiangsu Styway").
Jiangsu Siteway is a company established by Xu Chen, the actual controller of Siteway, when he first started his business in 2011.
This top student in the Department of Electronic Engineering at Tsinghua University, after completing his PhD at the Hong Kong University of Science and Technology, he successively joined Micron Technology, Inc. (Microlight Technology, later acquired by ON Semiconductor), Aptina, Inc. (ON Semiconductor) and OmniVision Technologies, Inc. (OmniVision Technologies, acquired by Weil Co., Ltd. in 2018).
Whether it is ON Semi or Ouvian Technology, they are all well-known giants in the field of CMOS image sensors (CIS chips). In the era of intelligent connection between everything, CIS chips are known as the retina of smart devices, equivalent to the human eye.
After resigning from Howe Technology, Xu Chen founded Jiangsu Stywei, which is mainly engaged in the research and development and design of CIS chip products with a FSI structure of 1 million pixels and less.
But Xu Chen's first entrepreneurial journey was not smooth.
From the perspective of shareholder structure, Jiangsu Styway only attracted two financial investors, Mao Xiaodong and Changshu Jinggao Investment, and the investment amount was only 2.19 million and 2 million respectively. Changshu Jinggao Investment agreed on the exit time when it was still investing, which was more like a low-interest loan.
From the perspective of operating results, Jiangsu Styway's revenue in 2016 and 2017 was RMB 16.25 million and RMB 20.31 million, respectively, while net profit was a loss of RMB 6.34 million and RMB 10.46 million.
Hong Kong Zhigan, controlled by Xu Chen, is responsible for the production and sales of CIS chips, although it achieved revenue of 195 million and 213 million yuan in 2016 and 2017 respectively. However, due to insufficient competitiveness of the product, the cumulative loss of 90 million yuan in two years.
At that time, both co-founders and investors lost confidence in the company's development prospects. After negotiation, Xu Chen acquired all the shares of the company they held and closed Jiangsu Styway at the end of 2017. After reorganizing, Xu Chen targeted the higher-end BSI and GS series chips and introduced new co-founder Mo Yaowu.
Mo Yaowu is a doctor of the Shanghai Institute of Technical Physics, Chinese Academy of Sciences. In addition to having almost similar resumes to Xu Chen, he is better at the design of chip reading circuits. After joining the company, he naturally became the company's technical leader.
According to the articles of association, Xu Chen and his wholly-owned or controlled shareholders exercised their voting rights of 5 times the proportion of subscribed capital. He also signed a joint action agreement with Mo Yaowu, and controlled a total of 51.46% of the company's voting rights before issuance.
Seeing this, many comrades may say FSI, BSI, GS? What exactly are you talking about!
BSI-RS is growing the fastest and is currently the largest source of revenue
CIS chips can be divided into front illuminated structure (FSI) and back illuminated structure (BSI) according to the installation location of the photosensitive element. On the basis of the back illuminated structure, stacked structure (Stacked) can be further improved.
From the perspective of design and process difficulty, the stack structure is the most difficult, followed by the back illumination style, and the front illumination style is the easiest to implement. Stack structure is currently mainly used in high-end mobile phone main cameras, high-end digital cameras, emerging machine vision and other fields.
can be divided into two categories according to the different exposure methods of the CIS chip shutter, and can be divided into two categories:
Roller shutter shutter controls exposure row by row or column by row, and completes exposure of all pixel units. It is more suitable for long-distance shooting of objects with stationary or slow movement speed;
Global shutter allows all photosensitive element pixel points to receive light at the same time, which is the best shutter method in application scenarios such as high-speed photography, but it has higher reading noise than roller shutter shutters.
When Xu Chen started his first business, he mainly produced FSI-RS chips with pixels of 1 million and less, while when he started his second business, he was positioned at FSI-RS, BSI-RS and GS series chips with pixels of 2 million and more.
Before 2020, FSI-RS series chips have always been Stywei's largest source of revenue; BSI-RS series chips are the fastest growing revenue, achieving revenue of 882 million yuan in the first three quarters of 2021, which has exceeded FSI-RS chips; GS chips also achieved revenue of 320 million yuan in the first three quarters of 2021.
(Note: The details of the full revenue project in 2021 have not been disclosed yet)
In addition to the origin of the name, Jiangsu Siteway closed the first half of its employees, and most core technical personnel have joined the newly established Siteway. Its patents, copyrights, design layouts and other intangible assets were also transferred to Siteway for free. Hong Kong Zhiganwei's sales channel has also become the main sales path in the early days of its establishment.
But there must be someone who said, it’s that simple?
Although failure is success, it is a bit too easy!
is born at the right time, so happy, so happy!
CIS chip is currently mainly used in the three major fields of smartphones, security monitoring, and automotive electronics, and the demand in the field of machine vision is also growing vigorously.
In 2020, the shipments of CIS chips in the fields of smartphones, security monitoring and automotive electronics were 6.06, 420 million, and 400 million, respectively, accounting for 78.50%, 5.40% and 5.20% respectively;
During the same period, the sales amounts of CIS chips in the fields of smartphones, security monitoring and automotive electronics were US$12.41, 87 and 2.02 billion, respectively, accounting for 69.30%, 4.90% and 11.30% respectively.
Although the shipments in the security monitoring field are comparable to those in automotive electronics, the sales amount is less than half of the automotive electronics field, which means that the security field is the relatively marginal market among the three existing fields.
1 Leading the security field, with the world's largest shipment volume and the world's second largest sales
Siteway is a breakthrough in the field of security monitoring. In fact, when Jiangsu Siteway was established, it focused on the security field. Even in other fields, where good progress has been made in the first three quarters of 2021, security monitoring still contributed 73% of its revenue.
At present, Stywei products cover the entire series of low-end, mid-end and high-end products in the security field, from 1 to 8 million pixels.
According to Frost&Sullivan statistics, in the field of security monitoring, Stywei shipped 146 million CIS chips in 2020, ranking first in the world in terms of shipments, with a market share calculated based on this being 34.95%.
However, because Sony's CIS chip used in the high-end security market is higher unit price, its market share based on sales reached 24.82%, ranking first in the world, and Stywei ranked second with a market share of 22.18%.
In Stywei's view, its high-end products in the security field have been able to benchmark against foreign countries, and it is only a matter of time before they can achieve import substitution. Let’s believe this for now and continue to track it without looking at the advertisements to see the efficacy.
2 As soon as the security CIS chip quickly entered the high-definition era
When explaining the reasons for its rapid growth in the second year of its establishment, in addition to its own technological advantages, Stywei also said, "It coincides with the security monitoring CIS field quickly entering the high-definition era."
is actually quite appropriate.
When Stywei was founded in 2017, it coincided with the upgrading process of my country's security video surveillance industry switching from standard-definition cameras to high-definition cameras. Since 2018, the shipments of cameras below 2 million pixels have dropped sharply, and 2 million pixels have become the mainstream shipment in the security monitoring field, accounting for 80% in 2020.
Stywei also launched two representative 2-megapixel products in 2018, which won market recognition and explosive shipments.
The foundation of the accumulation of experience of failure in the first business, the new co-founder, the opportunity in the field of security surveillance video... If you want to achieve great things, what seems to be missing?
pair, how to open the sales channel.
3 An opportunity to prove that your product is not worse than foreign countries
This is mainly due to the development of the downstream application field of CIS chips in my country that has been quite mature. Players are all large listed companies, and they have completed the market integration.
Styre just lacks an opportunity to prove to them that their products are not worse than foreign countries - and the Sino-US trade friction perfectly provides this opportunity.
Distribution and direct sales are the two main sales models of Stywei, among which direct sales revenue has grown rapidly, from less than 5% to the moment, it can be equally matched with the distribution business.
Zhiyuan Electronics, Dingxin Infinity, Qinuo Technology, and Xinzhi Technology are the main distributor customers of Siteway. In 2020, 97.57% of the distribution business revenue was contributed by these four companies.
The four companies are subsidiaries of listed companies Liyuan Information (300184.SZ), Wenye Technology (3036.TW), Shenzhen Huaqiang (000062.SZ) and Xinzhi Holdings (02166.HK).
Dahua Co., Ltd., Pulian Technology, Junshixin, DJI Innovation, and Huawei are Stywei's main direct sales customers. In 2020, these five companies contributed 91.54% of the revenue of the direct sales business.
Except for Shenzhen Junshixin Technology Co., Ltd. (hereinafter referred to as "Junshixin", which will be analyzed below), these are all well-known giants in their respective fields. In addition, Tiandi Weiye, Xiongmai Integration, Hikvision and Wingtech Technology are also the company's direct sales customers. Hikvision has become the fourth largest customer in the first three quarters of 2021.
This means that in theory, Stywei only needs to conquer these ten major customers with its own products. Obviously, it did.
In addition to business cooperation, Dahua Co., Ltd. and Huawei also invest in shares to become shareholders of the company, and the cooperative relationship is closer.
But one thing is emphasized that due to the Fables production model, Stywei chip production still adopts the foundry model. Therefore, after the United States imposed a chip export ban on Huawei in 2020, the company was unable to supply Huawei.
Strictly speaking, it has not yet gotten rid of import dependencies.
The competitive advantages of smartphones and automotive electronics are not obvious
Since smartphones and automotive electronics are the main application markets of CIS chips, what are the advantages of Stywei in these two fields?
1 The smart phone and automotive electronics fields should be tracked rationally, rather than random thoughts
The global smartphone CIS chip market is mainly occupied by manufacturers such as Sony, Samsung, Howie Technology, and Gekewei. In 2020, these four companies accounted for 80% of the market share.
front-mounted automotive-grade chip market is also mainly occupied by foreign manufacturers, including ON Semiconductor, Sony, and Howie Technology. In 2020, the market share of smart car CIS chip shipments of the above three companies exceeded 90%.
In the first three quarters of 2021, although Stywei achieved revenues of RMB 70.41 million and RMB 165 million in the automotive electronics and smartphone fields, respectively, it was mainly low-end series.
Moreover, all revenue in the automotive electronics field comes from the after-installation market, and it mainly relies on Junshixin, a single customer, and Junshixin's industry status is also relatively average.
The most interesting thing is that Junshixin, a customer, mainly developed by purchasing Shenzhen Anxinwei's patented technology in December 2019 and absorbing its technical team. He had no revenue in the automotive electronics field before 2019.
However, there is also good news. According to Siteway's self-reported vehicle-mounted market, two products have passed the automotive-grade certification, and have begun mass production verification and small-batch shipments in many main car manufacturers; during the IPO issuance stage, SAIC Group also participated in the company's strategic investors' targeted distribution. If it can enter the SAIC Group's supply chain...
But Fengyunjun believes that this should be rationally analyzed rather than random thoughts. Xiaomi Industrial Fund acquired stake in Siteway in October 2020, but the company's CIS chips have not yet entered Xiaomi's supply chain.
However, Xiaomi also wants to build cars, and the imagination space in the future is indeed good.
2 The only two in the world of machine vision
However, in the emerging machine vision field, Stywei has obvious competitive advantages. It is currently the only supplier of stack structure COMS image sensors at home and abroad, except Sony. In the first three quarters of 2021, it achieved revenue of 320 million yuan.
After deducting the equity incentive expenses in each year, Stywei's R&D investment is not high, only about 7% in the past two years.
In the past few years, the gross profit margin of the company's products has not been high, but with the upgrade and iteration of the product, it is now close to the level of Howie Technology. In 2021, due to active stocking, the cash flow is not good and the inventory scale is relatively large.
According to the first quarter of 2022 performance forecast, the epidemic, especially in areas where the company's customers are concentrated, is relatively serious, and the pace of customer pickup is affected, which is the main reason for the decline in revenue.
This may also be a reason for the large inventory balance at the end of the first quarter.
From the perspective of direct sales customers, Dahua Co., Ltd.'s revenue in the first quarter of 2022 increased by 14.34% year-on-year, Hikvision's revenue increased by 18.11% year-on-year, and the epidemic seems to have little impact on the security industry;
From the perspective of distributors, Liyuan Information's revenue in the first quarter fell by 13.84% year-on-year, and Shenzhen Huaqiang's revenue increased by 26.19% year-on-year, which seems to have some impact;
From the perspective of competitors, due to the decline in the shipment volume of the smartphone market, Weier Co., Ltd.'s revenue fell by 10.84% in the first quarter, but Stywei's market share in the smartphone field is not high.
Although the information is limited, through overall analysis, Fengyunjun believes that the change in the first quarter's performance does not mean that there are problems with the financial data of this chip company that has been listed quickly in just five years.
From the perspective of its active stocking, there may be surprises in 2022.
PS: On May 20, today, Stywei's first trading day of its first listing, rose 79.82%, and finally closed at the highest price of 56.66 yuan per share.
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