Telink Semiconductor(Shanghai) (SH:688591) Huachuang Securities·2025-08-28 13:05Investment Rating - The report assigns a "Strong Buy" rating for the company, TaiLing Microelectronics (688591) [1][10]. Core Views - TaiLing Microelectronics is positioned as a global leader in low-power wireless IoT chips, with a comprehensive product range and a strong customer base including top brands like Google, Amazon, and Xiaomi [6][7]. - The company is expected to benefit from the growing demand in various IoT applications, particularly in smart retail, smart home, and audio sectors, with significant revenue growth projected in the coming years [6][10]. - The acquisition of Panqi Microelectronics is anticipated to enhance the company's competitive edge in the low-power wireless IoT sector [22][24]. Financial Summary - Projected total revenue (in million) for 2024A is 844, with a year-on-year growth of 32.7%. By 2027E, revenue is expected to reach 1,973, reflecting a growth rate of 25.5% [2]. - The forecasted net profit attributable to shareholders (in million) for 2024A is 97, with a remarkable growth of 95.7%. By 2027E, net profit is projected to be 414, maintaining a growth rate of 31.1% [2]. - Earnings per share (in yuan) are expected to increase from 0.40 in 2024A to 1.72 in 2027E, indicating strong profitability growth [2]. Business Overview - TaiLing Microelectronics specializes in low-power wireless IoT chips, covering various communication protocols such as low-power Bluetooth, dual-mode Bluetooth, Zigbee, Matter, and WiFi [20][6]. - The company has established a strong market presence in multiple sectors, including smart retail, smart home, audio entertainment, and healthcare, with a focus on innovative product development [6][10]. - The company has a robust product matrix, with significant contributions from IoT chips, which account for over 90% of its revenue [34][30]. Market Position and Growth Drivers - The company is recognized as a leading supplier in the low-power wireless chip market, with a diverse customer base that includes major international brands [20][6]. - The report highlights four key growth engines: smart retail (electronic price tags), smart home (Matter solutions), smart healthcare (continuous glucose monitoring), and wireless audio (partnerships with top brands) [7][9]. - The ongoing technological advancements in Bluetooth and other wireless communication technologies are expected to drive the expansion of application scenarios, enhancing the company's market opportunities [39][40].