\u3000\u3000 Ingenic Semiconductor Co.Ltd(300223) (300223)
Events
Ingenic Semiconductor Co.Ltd(300223) release the annual performance forecast for 2021: it is estimated that the net profit attributable to the parent company in 2021 will be 808 million yuan – 984 million yuan, with a year-on-year increase of 1003.94% – 1244.82%, and the net profit attributable to the parent company after deduction will be 777 million yuan – 954 million yuan, with a year-on-year increase of 3693.01% – 4553.49%.
Key investment points
The performance forecast for 2021 exceeded expectations, benefiting from aiot and the wave of automotive intelligence
According to the calculation of the company’s annual performance forecast in 2021, the company’s net profit attributable to the parent company in Q4 in 2021 is expected to be 173 million yuan – 349 million yuan, with a year-on-year increase of 239% – 584% and a month-on-month increase of – 38.7% – 24.6%. The company’s performance growth mainly benefited from the continuous development of automobile intelligence and the strong demand of automobile terminal market, and the company’s sales revenue in the field of automobile electronics continued to grow; At the same time, the company’s sales revenue in the fields of industry, medical treatment, communication and consumption also achieved a good year-on-year growth. The company’s product lines have strong demand, and the overall operating revenue has increased year-on-year, which has driven the significant growth of the company’s net profit.
Vehicle storage leader, coordinated development of multiple product lines
Through the merger and acquisition of Beijing Sisi company, it has become a leading manufacturer in the field of vehicle storage. Up to now, it has many business product lines such as microprocessor chip, intelligent video chip, storage chip, analog and interconnection chip, and has independent and controllable core technologies in many fields such as CPU, AI, multimedia, SRAM, DRAM, flash, analog, MCU and connectivity.
In the field of microprocessor chips, the company’s products are mainly oriented to all kinds of intelligent hardware markets. Among them, its influence in the QR code market has been continuously improved, and the product sales have maintained rapid growth. With the launch of the company’s new product X2000 and the subsequent higher cost performance product x1600 series, it will contribute to the continuous growth of microprocessor business. The company’s products are self-developed, with certain cost advantages, low-power performance and design flexibility, which will be more conducive to the expansion of the company in related fields in the future.
In the field of intelligent video, the company’s existing series of chips can cover the needs of various end-level products in the intelligent vision IOT market, with the characteristics of high intelligence, high imaging quality and low power consumption. At present, they are recognized and adopted by brand customers and operators including wyze, Anker, Hualai, Xiaomi, qiao’an, 360, mobile, telecom and China Unicom in the consumer market. In 2021, the company completed the production of NVR chips for back-end equipment in the field of professional security, further complemented the video chip product line, and is expected to start in 2022.
In the field of memory chips, ISSI has been deeply engaged in the storage field for more than 30 years. According to omdia statistics, in 2020, its SRAM, DRAM and norflash products ranked second, seventh and sixth respectively in the global market, ranking in the forefront of the international market. At present, the company has a wide range of SRAM categories. From traditional synchsram and asynchsram to cutting-edge high-speed qdrsram, the company has independently developed intellectual property rights. DRAM of the company can meet the requirements of industrial, medical, backbone communication and vehicle specification products. At present, the latest manufacturing process of DDR4, lpddr4 and other products is 25nm. It is expected that more new products will be available in 2022. The company’s flash product line includes the world’s mainstream norflash memory chips and nandflash memory chips. In 2021, the holding subsidiary Shanghai Xinkai completed the investment and sample production of the first norflash chip for the mass consumer market, and the test results basically meet the expected indicators.
In the field of simulation and interconnection, the company’s products include LED driver chips, touch sensor chips, DC / DC chips, automotive microprocessor chips, Lin, can, g.vn and other network transmission chips, which are mainly oriented to the automotive, industrial, medical and high-end consumer markets. Among them, the company has rich types of vehicle specification LED driver chips, including headlamp, daytime running lamp, high beam lamp, fog lamp, turn signal lamp, combined tail lamp (position, brake, reversing, running water, etc.), license sector lamp and other driver chips. At the same time, the company continues to carry out the research and development and testing of network transmission products such as Lin, can and g.vn for automotive applications. Some products have carried out sample production and risk trial production, and some products have been verified by customers and are gradually undergoing mass production.
We believe that the company has benefited from the acquisition of ISSI to become the leader of on-board storage, and is expected to achieve rapid growth under the wave of automotive intelligence in the future. At the same time, the company’s own products such as microprocessors and intelligent video chips continue to be upgraded iteratively, forming a collaborative development trend with the storage business, and the company has sufficient long-term growth momentum.
Profit forecast
It is predicted that the revenue of the company from 2021 to 2023 will be 5.257 billion yuan, 7.058 billion yuan and 9.016 billion yuan respectively, and the EPS will be 1.93, 2.53 and 3.09 yuan respectively. The corresponding PE of the current stock price will be 60, 46 and 38 times respectively, giving the “recommended” investment rating.
Risk tips
The downside risk of industry prosperity, the risk that the R & D Progress of new products is less than expected, the risk of intensified industry competition, the risk of overseas policy changes, etc.
