Jiwei Network reported that on April 21, SaiWeidian, a leading domestic analog chip company, was officially listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, with a company stock code of 688325, an issue price of 74.55 yuan / share, and an issued market value of 5.964 billion yuan.
According to the prospectus, the main business of SaiWei Electric is the research and development and sales of analog chips, and the main products are battery management chips as the core, and extended to more types of power management chips, including battery security chips, battery metering chips and charging management and other chips.
"For the company, being able to land on the Science and Technology Innovation Board for listing is not only recognized by the market, but also means that the company will usher in a new development opportunity and be able to embrace a broader market space." Saiweidian said that through years of continuous research and development investment, Saiweidian has accumulated a number of core technologies with its own characteristics in the field of analog chip design, and has also won the recognition of high-quality brand customers represented by Dell, HP, Lenovo, and Samsung, which can be recognized by the capital market at this time, providing strong support for the company's subsequent development, which can assist Saiweidian to better transform its own technical advantages into products and expand a larger market to serve more customers.
Deeply cultivate the field of battery management chips, and grow together with the world's top terminal manufacturers
As we all know, due to the advantages of green environmental protection, long cycle life, high energy density and high working voltage, since the early 1990s, lithium batteries have officially entered the consumer electronics market such as mobile phones, tablets, notebook computers for commercial applications, and have been widely praised by the market, and have gradually become the preferred batteries for consumer electronics, power tools, smart homes, smart travel and new energy vehicles.
To ensure safe and stable battery applications, battery management chips have become indispensable key components. Battery management chips can ensure the safety of the battery, monitor the health of the battery and manage the life expectancy, optimize the efficiency of battery input and output, while providing good interactive information to improve the user experience and so on.
However, because battery management chip products play an important role in the safety and reliability of batteries and electronic products, and need to have a considerable understanding of the battery electrochemical system, the technical threshold is very high, so for a long time the global lithium battery management chip market has been mainly occupied by international giants such as TI, MAXIM, MPS, etc. There are relatively few domestic companies with battery management chip research and development and design capabilities.
In this case, since its establishment in 2009, Saiwei Electric has been deeply involved in the field of battery management chips, and is known in the industry for its ultra-high R&D investment and excellent product performance. From 2018 to the first half of 2021, the proportion of R&D expenses of SaiWeidian to operating income was 27.61%, 32.60%, 23.17% and 19.90%, respectively, which was much higher than the industry average.
Maintaining a high R&D investment for a long time has also led to the rapid evolution of technology and products, thus achieving a breakthrough for first-class terminal brand customers. Up to now, Saiwei Electric has accumulated high-quality end customers including Dell, HP, Lenovo, Samsung, Stanley Baide, TTI, Dongcheng Electric, OPPO, Glory, Xiaomi, No. 9 Intelligence, Compal Computer, Wingtech Technology, Goertek, Magic Acoustics, Coworth, Anker Innovation, Bull Appliances, etc., and has grown into a leading analog integrated circuit manufacturer in China.
The above-mentioned head customers have leading technology, strict product performance and quality requirements, and can grow together with the world's top terminal manufacturers, for Saiwei Electric, it can not only promote the company's technology iteration to maintain technological advancement, provide a window for the landing of the company's new technologies and new products, but also provide a continuous guarantee for the future performance of Saiwei electric.
Attach importance to R&D investment and create four major advantages
As we all know, semiconductors are typical capital and technology-intensive industries, with high input, long cycle and other characteristics. Compared with foreign giants, although there are many Chinese semiconductor companies, most of them are small in scale, and they are far inferior to international manufacturers in terms of revenue scale, technology investment, and business coverage.
In an environment where international giants such as TI, MAXIM, and MPS occupy the vast majority of market share, it is not easy for Chinese analog chip companies to develop.
Combined with its own development, Sai Wei Wei Electric believes that analog chips need to process the data of the real physical world, resulting in the ever-changing market demand faced, only if the subdivision industry is deep enough and has unique insights, can it accumulate to "Know-how", which is also one of the key factors for the development of simulated enterprises.
At the same time, the analog integrated circuit design industry development cycle is long, architecture and circuit design rely on manual design rather than software automation, only a long period of "heavy R & D investment", in order to deeply combine the design ability with manufacturing and packaging and testing processes, the development of excellent performance, reliable quality products.
In fact, Sai pico is to battery management chip as a breakthrough, after more than ten years of technical research, in the field of analog chip design and battery electrochemistry have accumulated a series of core technologies, has developed battery metering chips, battery security chips, charging management three major product lines, and gradually open the market.
At present, Sai pico has 4 core competitive advantages. The first is the advantage in technology, the management and R & D team of SaiWeiwei electric have worked in the internationally renowned integrated circuit field and lithium battery field of top enterprises, with rich experience in analog integrated circuit design and battery application technology accumulation. As of June 30, 2021, the company has 33 patents, including 17 invention patents, and the company's technical research and development personnel account for 47.47% of all personnel.
The second is that the company's product performance is outstanding and the quality is stable, according to the prospectus, the performance indicators of Saiwei electric products have generally been comparable to the well-known competitors in the industry, and some indicators have exceeded the competitors. In terms of quality, Saiwei Electric will take the initiative to carry out redundant design in the early stage of product research and development, and at the same time, the company's entire supply chain system has a complete and strict quality management system, which can fully guarantee the quality and stability of the company's products.
The third is the service advantage, SaiWeiwei electric focus on sales and service personnel professional ability and customer response efficiency, not to provide simple products, but to provide customers with a complete set of services, the company has an experienced professional technical support team, can quickly solve the customer's actual problems.
The fourth lies in the brand advantage, through a long period of deep cultivation in the field of battery management chips, SaiWeiwei has been recognized by many international first-line customers, established a good brand image of "stable and reliable products, timely and efficient service", and laid a solid foundation for opening up new markets and establishing cooperation.
Generally speaking, gross profit margin is the most important indicator of enterprise competitiveness, and the gross profit margin level of SaiWei Electric is much higher than that of its peers, which also highlights its strong market competitiveness. From 2018 to the first half of 2021, the comprehensive gross profit margin of SaiWei electric was 59.81%, 61.75%, 60.37% and 62.72%, respectively.
Vertical deep ploughing battery products, horizontal expansion of power chips
The growth of chip companies is often inseparable from downstream market opportunities, and Saiwei Electric will also enter a new round of expansion cycle with the global lithium battery industry, ushering in new performance explosion opportunities.
At present, the lithium-ion battery industry, as an important part of the new energy field, is being highly valued and strongly supported by governments around the world. At the same time, with the continuous progress of lithium battery technology and the gradual decline in cost, lithium batteries have successfully been popularized in various application fields such as electric vehicles, energy storage power stations, 5G communications, power tools, smart homes, and smart travel, driving the market demand for lithium batteries to continue to grow.
According to EVTank statistics, in 2020, global lithium-ion battery shipments reached 294.5GWh, and it is expected that by 2025, global lithium-ion battery shipments will reach 1.196GWh, with a compound growth rate of 32%.
Obviously, driven by the rapid growth of lithium battery production, battery management chips as an indispensable supporting chip in the lithium battery industry, the market capacity has also expanded, and it is expected to reach 20 billion yuan by 2022.
As a leading enterprise in the field of domestic battery management chips, SaiWei Electric will also fully benefit from this.
Based on the optimism of market demand, Saiwei Electric intends to publicly issue no more than 20 million shares to the public, and after deducting the issuance cost, the funds raised will be used for consumer electronics battery management and power management chip research and development and industrialization projects, industrial battery management and power management chip research and development and industrialization projects, new energy battery management chip research and development projects, research and development center construction projects, etc.
It can be seen from the fundraising project that in addition to vertically deepening the battery management chip, strengthening the update and iteration of existing products, and embracing the new energy industry, SaiWei electric also actively expands other types of power management chips horizontally and continues to expand the company's product coverage.
At present, the global battery management chip market is showing a rapid development trend, and the demand for battery management chips in the markets of smart phones, computers, smart homes, power tools, Internet of Things, industrial robots and so on will continue to grow.
According to Yole's forecast, the size of the global power management chip market will reach $37 billion in 2021, and by 2025, the compound annual growth rate is expected to be 9.1%, higher than the global average growth rate of integrated circuits of 6.9%.
At the same time, driven by policies and markets, the process of domestic substitution will be further accelerated, which will also drive the performance growth of domestic analog chip companies.
Driven by the broad market demand, Saiwei Electric takes independent research and development and technological innovation as the foundation of the company, adheres to a high proportion of R & D investment, and accumulates "Know-how" in the field of deep cultivation, which will surely seize the opportunity of the development of the semiconductor industry, continue to expand the company's market share, and obtain rapid and stable development.
(Proofreader/Fan Rong)