With the technology bet on artificial intelligence chips, DDR5 has become a new growth point.
It is considered to be “China’s Nasdaq”. Since the official transaction, the science and technology board has received much attention from all. Today, the official transaction of the science and technology board has been full moon. Some people think that in the past month, this is a new wealth-producing and distributing center. On the first day, it was “born” 125 billionaires; some people think that this is a test field for innovation in China’s securities market. It is exerting a subtle influence on startup companies, VCs, and PE institutions in the primary market.
But there is no doubt that in the long run, it is more likely to be the touchstone of the value of hard technology companies. Therefore, at this time node, we launched the “Overview of the Board” series, hoping to bring readers to quickly understand the company.
Peace Technology, the world leader in memory interface chips, is the only real chip stock among the five companies currently registered by the China Securities Regulatory Commission. This article will introduce you to the technology.
Company Profile and Growth History
Shenqi Technology Co., Ltd. (hereinafter referred to as Qiqi Technology) was established in 2004 by the Montage Group. Pickup Technology’s main business is to provide chip-based solutions for artificial intelligence and cloud computing, is the world’s leading provider of fully buffered/semi-buffered complete solutions from DDR2 to DDR4 memory. one.
The company was listed on July 22, 2019. As of 10:45 on August 27, 2019, the company’s share price was 68.81 yuan.
Setting up the technology business model is Fabless mode, no need to cost to build a wafer production line. The company currently has three main products: memory interface chip, Jincun® server CPU, and hybrid secure memory module.
Specifically,
Memory Interface Chip
Pick up technology provides a high-performance memory interface solution that complies with JEDEC standards. The memory interface chip products of the company’s DDR series are shown in the figure below. At present, the main customers of Fuqi Technology are Fuchang Electronics, Hynix, Haitai Semiconductor, Kingston, Qinuo Technology, Samsung Electronics, and Zhongdian Equipment.
Jinju® Server CPU and Hybrid Secure Memory Module
Jinju® server platform is mainly composed of the technology of Jinjin® server CPU and the hybrid security memory module with independent intellectual property rights. The Hybrid Secure Memory Module uses Mont-In-Motion (Montage, Inspection and Control on Memory Traffic) memory monitoring technology with proprietary intellectual property to provide a safer and more reliable memory solution for high-end server platforms. 澜起科技 launched the first generation of jinjin® server platform products at the end of 2018, which is still in the marketing stage and is not the main source of revenue for the company.
The picture below shows the composition of the product collection. It can be found that the chip business is the main source of revenue for the company, accounting for more than 99%; the market share of Jincun® server platform is less than 1%.
Pick up technology revenue product composition
Company’s financial data and analysis, the company’s risks
The company’s revenue has doubled in 2016-2018. In 2017 and 2018, the company’s net profit growth was 274% and 112% respectively. The company expects revenue from January to June 2019 to be approximately 8.2-8.8 billion yuan, an increase of 16%-24%.
Starting Technology Revenue
As a technology- and R&D-led company, the risks faced by technology are mainly from both technology and operations.
Technical risk
The large investment in product R&D and long cycle are common problems facing the industry. In 2016-2018, the rise in technology research and development costs accounted for businessThe total cost proportions were 26.22%, 20.03%, and 27.29%, respectively. It can be seen that the company’s investment in research and development has increased year by year. For R&D companies, technology investment is the main source of operating costs for the company. At present, A-share listed company Huiding Technology (currently providing leading human-computer interaction and biometric solutions for the intelligent mobile terminal market, and has become the first supplier of fingerprint identification solutions in the Android camp) and Zhaoyi Innovation (in flash memory) Chips and their derivatives, microcontroller product development, technical support and sales) can be used as a benchmarking company, the two companies annual report shows that 2018 research and development revenue accounted for 22.53% (Huiding Technology), 10.24% (Zhaoyi Innovation). Therefore, once the product is easily produced by competitors in the process of product iteration, the company’s development will be seriously affected. In the research and development of DDR5 series products, although the company has the industry leading edge, in the next few years, DDR5 gradually replaces DDR4, the company still faces the above challenges.
Operational risk
Pick up technology’s main memory chip products, and its downstream is the DRAM market. Samsung Electronics, Hynix and Micron Technology are the top three customers in the DRAM market with a market share of over 90%. The sales of the top five customers in the market are about 80%, and the customers are concentrated. If the company can’t maintain the relationship with the top five customers and lead to customer loss, it will seriously affect the company’s revenue. In addition, the structure of the product is relatively simple. In 2016-2018, the revenue of memory interface chip products accounted for 66.08%, 76.14%, and 99.49% of the total revenue respectively. If the demand for short-term memory interface chips declines, the company’s revenue will be seriously affected.
Use of company fundraising
The technology will continue to be used in the existing chip interface field and technology research and development of the CPU and related platforms of the company, and maintain the company’s market leading position, while artificial intelligence chips as a new business growth. point.
Financing purposes
The company will upgrade the performance of the original DDR4 memory interface chip based on the research and development of the existing chip interface field. At the same time, the company will develop the DDR5 memory interface chip, promote the upgrading of products, and improve the competitiveness of the company’s products.
In the Jinchong® server CPU and related platforms, the company plans to launch a hybridThe secure memory module cooperates with the CPU of the server to implement dynamic security monitoring at the chip level to meet the data security and large memory requirements of high-level data centers.
In addition, the company will combine its own research and development advantages to develop artificial intelligence chips, including AI processor chips and SoC chips for cloud data centers.
Introduction to other companies on the track
At this stage, the world’s R&D and mass production server memory interface chips are only IDT and Rambus.
IDT, founded in 1980 and headquartered in the United States, is a combined signal semiconductor solution provider for the communications, computing and consumer industries. IDT offers products such as DDR3 and DDR4 LRDIMM memory interface solutions to meet the needs of enterprise server applications. Rambus is a US chip design company founded in 1990. Rambus was founded at the beginning of research and development of high-end storage products, with 2,500 patents, but the current market share is not high.