Value Discovery Zhilu Technology: Domestic FPGA leaders entered a new stage of development

Anlu Technology (688107) was established in 2011. It is the leading domestic FPGA manufacturer. It mainly focuses on the research and development and sales of FPGA chips and special EDA software. At present, the company has formed four product series of EAGLE, ELF low power consumption, Phoenix high performance, and FPSOC. The products are widely used in industrial control, communications, consumer electronics, data centers, automotive electronics and other fields. In recent years, the company has been based on independent research and development, continuously improves product matrix, breaks through high -end products, and at the same time grasps the major trend of the booming development of the downstream market and the increase in demand for domesticization, achieves rapid revenue growth, and continuously optimizes business structure. In 2021, the company realized revenue of 679 million yuan, an increase of 141.44%year -on -year, which has doubled more than doubled for three consecutive years. In the first quarter of 2022, Anlu Technology realized the first transfer of net profit of deduction and mother, which marked the new stage of the company's productization and profitability.

FPGA (programmable logic door array) is a logical chip with a unique structure. Different from traditional chips, FPGA introduces new CLB, LUT and other concepts and connects logical modules internally. The unique structure enables FPGA to achieve on -site programming in use, that is, subsequent programs determine the use of chips. Xilinx is a company invented FPGA and is currently a head company in the world's global FPGA. Looking back at its development process, it can be found that the epoch -making significance of FPGA products and the current global FPGA development trend is the integration of multifunctional modules. According to FROST & Sullivan, the global FPGA market size in 2020 is close to 7 billion US dollars, and it is expected to reach US $ 12.5 billion in 2025. In 2020, the scale of China's FPGA will be around 15 billion yuan, and it is expected to increase to about 33 billion yuan by 2025.

FPGA's product characteristics drive rich downstream applications. Because FPGA has the advantages of writing procedures, relatively low development costs, and short manufacturing cycles, it is widely used in industrial control, network communication, consumer electronics and other fields. Especially when emerging fields appear, in areas where professional chips cannot be popular, FPGA can exert its absolute advantage. For example, in the automotive electronics industry, according to FROST & Sullivan, the Chinese automotive electronics market FPGA chip sales in 2020 were about 950 million yuan, accounting for 6.3%of China's FPGA chip market share, and CAGR will be expected to reach 22.7%from 2021-2025. At present, Xilinx and Altera still occupy the main share of the domestic FPGA market. From the perspective of sales, it is expected that Ziguang Tongchuang and Anlu Technology share in the domestic market in 2021, respectively, and the alternative space is still broad. At present, the two domestic FPGA manufacturers go hand in hand, and the close combination of FPGA software and hardware has cast a high entry threshold, and the long -term pattern is clear.

Since the establishment of Anlu Technology, it has been focusing on the FPGA chip design field, relying on continuous research and development investment and excellence technology innovation. At present, the company has the core technology of FPGA products. The complete full -process software tool chain of hardware structure matching, and the chip test process that meets the standards of the international industry, has mastered key technologies in terms of hardware, software, testing, and applications. According to ROST & Sullivan research data, based on the volume caliber in 2019, the company ranks first among domestic FPGA chip suppliers in the Chinese market.

The company attaches great importance to R & D investment. From 2018 to 2021, the company's R & D expenses were 34 million yuan, 79 million yuan, 126 million yuan and 244 million yuan, respectively, maintaining high-speed growth. As of the end of 2021, the company has obtained 156 intellectual property authorization, and the technical reserve ranks the first echelon in the domestic FPGA industry. The company's fundraising funds will be mainly used for the new generation of FPGA chip development and industrialization projects and FPSOC system -level chip R & D projects. In the future, the company will promote the iterative upgrade of the Phoenix series chips, launch new FinFET process products, cover the scale of more than 1kk; strategic layout of low power consumption FPSOC and high -performance FPSOC, further expand the FPSOC chip market.

Open source securities said that the Chinese FPGA market has developed rapidly, domestic FPGA manufacturers have local advantages, and domestic alternative spaces are large. Anlu Technology will fully benefit from the opportunities for domestic domesticization. It is estimated that the company's operating income from 2022-2024 is 1.132 billion yuan, 1.670 billion yuan, and 2.449 billion yuan, respectively, and the net profit attributable to the mother is 08 million yuan, 65 million yuan, and 145 million yuan, respectively. According to the PS valuation method, Anlu Technology's current valuation level is lower than the industry average. Cover for the first time and give "buy" rating.

Huatai Securities said that the domestic replacement process of FPGA chips has continued to accelerate, and the company has continuously enriched the product matrix and concentrated its strength to promote the development process of large -capacity and high integration. The company's revenue is expected to be 1.163 billion yuan, 1.672 billion yuan, and 2.346 billion yuan from 2022 to 2024, and the net profit attributable to the mother is 07 million yuan, 36 million yuan, and 135 million yuan, respectively. The first coverage is given to "buy" rating. Reporter Liu Xiwei

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