Lanqi Technology (688008) In-depth Research: Ingenuity to Create Chinese Core

Lanqi Technology (688008) In-depth Research: Ingenuity to Create Chinese Core

[Key points of investment]Lanqi Technology is the world’s leading manufacturer of memory interface chips.

At present, the only manufacturers in the global market that can produce interface chips that comply with the DDR4 memory standard are Lanqi Technology, IDT and Rambus. The company accounts for nearly 50% of the market share. The company began 杭州桑拿网 to develop and sell memory interface chips from 2004.All the way, the company has grown into an industry leader. The company’s DDR4 full cache “1 + 9” architecture has been adopted as an international standard. The company also actively develops DDR5 connection chips and continues to advance in the industry.

Develop server products and embrace a wider market.

The company launched the Jinda server platform to enter the server market. The company cooperated with the kernel and Tsinghua University to develop a Jinda CPU suitable for the X86 general platform. It can dynamically monitor the memory and CPU operation. With the company’s hybrid security memory chip, it can provideThe server provides chip-level real-time security monitoring and is a more secure and reliable computing platform.

The server market is expected to resume 南京夜网 growth in 2020.

After the rapid expansion of the global server market in 17/18 years, it will enter a short-term rest period in 2019. By tracking the server upstream and upstream performance, we can see a clear recovery in the third quarter, and it is expected thatContinue to improve, the next two years will be a big year for server upgrades, overlapping traditional industries with digital transformation and the rapid development of artificial intelligence and big data industries, and the server market will return to the growth range.

[Investment recommendation]We expect the company’s 19/20/21 revenue to be 20 respectively.

82/26.

35/33.

6.6 billion, net profit attributable to mothers was 9.

60/12.

08/15.

310,000 yuan, EPS is 0.

85/1.

07/1.

35 yuan, corresponding to PE is 84/67/53 times.

Covered for the first time, giving “overweight” rating.

[Risk warning]The server capacity has recovered less than expected; the development of new-generation DDR5 interface chips has fallen short of expectations.