Telink Semiconductor(Shanghai) (688591) Soochow Securities·2025-06-10 15:11Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [3][4]. Core Views - The company is positioned as a leader in low-power wireless IoT system-on-chip (SoC) technology, focusing on multi-protocol connectivity solutions that cater to various applications in smart homes, wearable devices, and industrial IoT [2][3]. - The company has a robust product matrix that includes Bluetooth, Zigbee, Thread, and Matter protocols, which are essential for the growing AIoT market [2][3]. - The company is expected to see significant revenue growth, with projected revenues of 11.50 billion, 14.81 billion, and 18.78 billion yuan for 2025, 2026, and 2027 respectively, alongside net profits of 2.0 billion, 3.0 billion, and 4.3 billion yuan for the same years [3][4]. Summary by Sections Company Overview - The company, established in 2010, specializes in the design and sale of low-power wireless IoT chips and has become a representative enterprise in this field with a comprehensive product range [16][19]. - It has established a strong position in various sectors, including low-power Bluetooth, Zigbee, and Matter protocols, and has a significant presence in the 2.4G private protocol SoC market [16][19]. Financial Analysis - In 2023, the company achieved a revenue of 636.09 million yuan, a year-on-year increase of 4%, with significant growth expected in 2024, projecting revenues of 844.03 million yuan, a 32.69% increase [28][32]. - The company’s net profit for 2023 was 49.77 million yuan, with a forecasted increase to 97.41 million yuan in 2024, reflecting a 95.71% growth [28][32]. Technology and Product Development - The company has developed a complete core technology system for low-power wireless IoT, covering chip design, protocol stack development, and large-scale networking [43][44]. - It has introduced new core technologies in 2024, enhancing its competitive edge in BLE, Zigbee, and Thread protocols, and expanding into edge AI applications [2][43]. Market Opportunities - The company is diversifying its product applications across high-value sectors such as smart audio, healthcare, and automotive electronics, which are expected to drive future growth [2][3]. - The company has made strategic advancements in the smart audio market with Bluetooth audio chips and is developing medical monitoring devices based on Bluetooth technology [2][3].