Telink Semiconductor(Shanghai) (688591)2024-09-13 03:30Investment Rating - The report gives a "Recommend" rating for the company, citing its leading position in the wireless IoT chip market and strong growth potential in high-end markets [1][3] Core Views - The company is a leading domestic Bluetooth chip supplier with strong technical capabilities and a diverse downstream application portfolio [1] - Revenue has been relatively stable in recent years, with a focus on high-end markets and strong profitability [1] - The company has forward-looking layouts in medical, automotive, and Bluetooth audio sectors, with significant growth potential [1] - The report forecasts net profit attributable to the parent company of 81/123/178 million yuan for 2024-2026, with corresponding P/E ratios of 48/31/22x [1] Financial Performance - 1H24 revenue was 366 million yuan, up 14.67% YoY, with net profit attributable to the parent company of 27 million yuan [1] - 2021-2023 revenue was 650/609/636 million yuan, with YoY changes of 43.15%/-6.19%/4.40% [1] - Gross margins have been steadily increasing, from 41.27% in 2022 to 46.18% in 1H24 [1] Business Segments - IoT chips accounted for 91.42% of 2023 revenue, with products including BLE, 2.4G, multi-mode, and ZigBee SoCs [13] - Bluetooth audio business contributed 7.35% of 2023 revenue and is showing initial success [1] - The company has entered Apple's HomeKit ecosystem and provides support solutions for multiple projects [1] Market Opportunities - The global Bluetooth device market is expected to grow from 5 billion units in 2023 to 7.5 billion by 2028, with a CAGR of 8% [36] - The smart home market is projected to grow from 258.4 billion by 2032, with a CAGR of 10.69% [47] - The continuous glucose monitoring market is expected to reach 7.5 billion in 2023 [60] Competitive Landscape - The company ranks third globally in BLE chip market share at 12%, behind Nordic (37%) and Dialog (13%) [72] - In the multi-mode SoC market, the company ranks fifth globally with a 5% market share in 2020 [73] - The company's products cover a wider range of protocols compared to competitors like Nordic, including Matter, 6LoWPAN, and HomeKit [66]