Espressif Technology (688018): Overview of New Shares in Science and Technology Board

1. Company profile development history: leading companies in the Internet of Things chip industry, supporting the major businesses of many mainstream global IoT platforms: providing wireless Internet, Bluetooth chips and their solutions Ownership structure: centralized, with controlling shareholder and actual controller executive background: Complementary professional structure and rich R & D experience. Market space: development of application domain + growth of downstream market. Development of two-wheel drive application. The rapid expansion of IoT technology is profoundly affecting many application layers such as home furnishing, industry, medical treatment, and 深圳桑拿网 transportation.In the field, the application size of Wi-Fi chips has further expanded, and market demand has presented complex features.

In 2017, the number of connected devices worldwide reached 83.

With 8.1 billion units, the size of the IoT terminal market reached 1.

69 trillion US dollars, the number of global connected devices is expected to reach 204 in 2020.

1.2 billion units, the size of the IoT terminal market will reach 2.

93 trillion US dollars, maintaining an average annual high growth rate of 25-30%.

Downstream market size growth The global smart home market size in 2017 was approximately 1,621.

With USD 9.2 billion, the smart home industry will reach 2,769 in 2022.

$ 8.2 billion.

In 2017, the global wearable device assembly volume reached 1.

1.3 billion units, an increase of 11% over 杭州夜网论坛 2016, and the global replacement volume is expected to reach about 2 by 2021.

2.2 billion units, with an average annual composite strength of 18%.

The Wi-Fi chip market size is expected to grow to 197 in 2022.

200 million US dollars, can maintain 3 in 2019.

The growth rate of 5% can maintain 3 in 2020.

49% growth rate.

Development trend: The artificial intelligence strategy has a bright future. Leading the chip design direction Artificial intelligence is an important part of China’s strategy and the focus of future international competition.

In the future, the design of integrated circuits will focus on improving the performance and integration rate of chips, and implementing artificial intelligence chips for artificial intelligence terminals.

According to the “New Generation Artificial Intelligence Development Plan” released by the State Council in 2017, by 2020, the core industry scale of artificial intelligence and artificial intelligence will exceed US $ 150 billion, driving the scale of related industries to exceed US $ 1 trillion.

Competitive landscape: The competition is fierce, and the main players in the downstream industry that form a consistent industry with chip suppliers are divided into large-scale traditional integrated circuit design manufacturers and small and medium-sized integrated circuit design companies represented by companies.

Large traditional integrated circuit design manufacturers have competitive advantages in terms of R & D strength and capital expenditure.

Small and medium-sized enterprises generally plan their R & D ahead of time. After years of technology accumulation, they have the first-mover advantage in the market, and lead the competition in product performance, cost, localization, customer service and after-sales support.

With the in-depth development of the Internet of Things in recent years, many IoT device manufacturers and solution providers have reached long-term stable cooperative relationships with certain companies, such as companies.

Internal enterprises: Southern Silicon Valley, Lianshengde and other mainland enterprisesInternal enterprises: Qualcomm, Texas Instruments, Content, Cypress, Realtek, MediaTek, etc. (Wi-Fi MCU products account for their business) market shareupside potential.

Risks indicate insufficient R & D strength and risk of technological transformation. Compared with international rankings, the company’s capital scale is relatively small, its R & D strength is relatively weak, and it has certain R & D competitive advantages.

If the company’s insufficient investment in future research and development, insufficient technical talent reserves, inflexible innovation mechanisms, or excessively rapid industrial technology, will result in the company’s inability to quickly launch new products that meet market demand in a timely manner, the company will lag behind in market competition.

Suppliers fully concentrated risk In 2018, the company’s top five suppliers’ purchase amount was 277.

02 million yuan, accounting for 94% of procurement.

87%, higher concentration.

If the supplier fails to provide a stable supply of the products purchased by the company for various reasons, the possibility of timely delivery will affect the company’s normal sales business and the ability to subsequently obtain sales orders.

The customers are mainly concentrated on risks. The customers are mainly internally well-known companies in the industry such as Xiaomi and Tuya Smart. In 2018, the company’s sales to the top five customers accounted for the proportion of operating income in the same period.

88%, which is relatively high.

If there are major adverse changes in the operating conditions and credit status of the major customers, or if the cooperation relationship with the company has an adverse change in the scale of cooperation, it will affect the company’s sales scale and adversely affect the company’s operations.