A：Company Basic Information
Full Name: Rockchip Electronics Co., Ltd.
Stock Code: 603893.SH
Stock Abbreviation: Rockchip
Region: Fuzhou City, Fujian Province
Industry: Integrated Circuit Design
Establishment Date: November 25, 2001
Issue Price: 9.68
Founder: Li Min
Company Website: http://www.rock-chips.com
Registered Address: Building 18, No. 89, Software Avenue, Gulou District, Fuzhou City, Fujian Province
Total Share Capital: 418 million shares (as of June 30, 2022)
Total Market Value: 89.09 billion yuan (as of October 25, 2022)
Business Scope: Design, development, and sales of large-scale integrated circuits and application solutions.
Company Profile: Rockchip Electronics Co., Ltd., established in 2001, is headquartered in Fuzhou, with subsidiaries in Shenzhen, Shanghai, Beijing, Hangzhou, and Hong Kong. The company focuses on the design and research of integrated circuits and has developed into a leading processor chip enterprise in the Internet of Things (IoT) and Artificial Intelligence Internet of Things (AIoT).
B：Value Investment Analysis
Key Financial Indicators:
Operating Income: Achieved 1.378 billion yuan in 2021, a year-on-year increase of 104.42%.
Net Profit: Achieved 264 million yuan in 2021, a year-on-year increase of 184.12%.
R&D Investment: In 2020, the company's R&D expenses were 376.33 million yuan, with an R&D expense ratio of 20.20%, a year-on-year increase of 21.36%.
Gross Margin: In 2020, the gross margin was 3.08pct higher than the average level, reaching 40.78%.
Net Profit Margin: In 2020, the net profit margin was 4.74pct higher than the average level, reaching 17.17%.
ROE: In 2020, the ROE was 7.57pct higher than the average level, reaching 16.09%.
Company Investment Value:
Rockchip, as a domestic leader in AIoT chips, demonstrates good investment value and growth potential with its strong R&D capabilities, rich product lines, and stable market position. With the rapid development of the AIoT market, the company is expected to continue to benefit and achieve steady growth in performance. At the same time, the company actively responds to international policy risks by strengthening independent research and development and cooperation, ensuring the stability of the supply chain and market expansion capabilities.
Company Growth Potential:
Rockchip's new flagship chip RK3588,8nm advanced process technology, leads the industry with its 12-22nm processes. It is suitable for high-performance applications such as PCs, edge computing, cloud services, large-screen devices, and 8K video encoding and decoding, offering significant technical and market advantages. As the AIoT market grows rapidly, the company is expected to further expand its market share and achieve sustained growth.
Industry Support Policies:
Rockchip, as a leader in the domestic integrated circuit design industry, benefits from the national support for the integrated circuit industry. In recent years, the state has introduced a series of policies, including tax incentives, financial support, R&D subsidies, etc., to promote the development of the integrated circuit industry. These policies provide a good development environment and opportunities for companies like Rockchip.
International Policy Risks:
The current international situation is complex and changeable. Trade frictions and technology blockades may have certain impacts on the company's supply chain and market expansion. However, Rockchip actively responds to international policy risks by strengthening independent research and development and cooperation, striving to ensure the stable development of the company.
A.Top's Investment Review:
Rockchip, as a domestic leader in AIoT chips, demonstrates good investment value and growth potential with its strong R&D capabilities, rich product lines, and stable market position. With the rapid development of the AIoT market, the company is expected to continue to benefit and achieve steady growth in performance. At the same time, the company actively responds to international policy risks by strengthening independent research and development and cooperation, ensuring the stability of the supply chain and market expansion capabilities. Overall, Rockchip is an investment target worth paying attention to.