\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
Event:
The company issued the announcement on the advance increase of annual performance in 2021. It is estimated that the net profit attributable to the parent company in 2021 will be 4.468 billion yuan to 4.868 billion yuan, with a year-on-year increase of 65.13% to 79.91%; The net profit deducted from non parent company was 3.918 billion yuan to 4.268 billion yuan, with a year-on-year increase of 74.51% to 90.10%.
The automobile, security CIS and tddi businesses have made great efforts, and the performance in 21 years has increased significantly year-on-year: the company expects the net profit attributable to the parent company to increase significantly year-on-year in 2021. The main reasons are: (1) the demand for image sensors in automobile, security and other fields has increased greatly, and the company’s market share has continued to increase. (2) With the launch of new tddi products and the further expansion of customers, the revenue of related products of the company has grown rapidly. From the Q4 single quarter, the company expects the net profit attributable to the parent company to be 950 million yuan to 1.35 billion yuan in the fourth quarter of 2021, with a year-on-year change of – 3.02% to + 37.82% and a month on month change of – 25.49% to + 5.89%; Net profit deducted from non attributable parent company was 850 million yuan to 1.200 billion yuan, with a year-on-year change of + 29.01% to + 82.13% and a month on month change of – 22.87% to 8.90%. The net profit attributable to the parent company of Q4 continued to grow high year-on-year. Among them, the performance of Q4 smartphone market was flat, and the high growth of automotive CIS offset the demand fluctuation of some mobile phone markets.
The leading edge of automotive CIS continues to strengthen, and automotive semiconductor is expected to open the second growth curve of the company: the company has an early layout in the automotive CIS field, has all product lines from 2m to 8m, and has obvious technical advantages. According to TSR data, the global market share of automotive CIS of the company ranked second in 2019 and is in the stage of continuous improvement. In April 2021, the company formally joined the NVIDIADRIVE automatic driving vehicle development ecosystem, and continuously strengthened its cooperation with the downstream leading auto driving solutions. On January 5, 2022, the company launched a new 3 megapixel automotive CIS product ox03d, which can be used in automotive look around system (SVS), rear view system (RVs) and electronic rear-view mirror. The product allows automotive manufacturers to seamlessly upgrade from 1 megapixel to 3 megapixel, while retaining high performance and low power consumption, and realize a pixel size of only 2.1 microns in 1 / 4-inch optical format. In addition to CIS, the company has also laid out ar HUD for vehicles based on LCOS scheme, and extended the capabilities of original MCU, power, analog and other chips to the automotive field. Automotive semiconductor is expected to open the company’s second growth curve in the future.
Multiple products work together to build a platform chip company: in addition to the CIS field, the company also has discrete devices, power management IC, RF chip and other product lines, acquired the tddi business of Xinsi Asia, took shares in Shenzhen gidith, and strengthened the layout of AMOLED drive IC. In the field of tddi, the company has achieved full product coverage, from HD720P to fhd1080p, and the display frame rate has been fully covered from 60Hz, 90hz, 120Hz to 144hz, and the market share has increased rapidly. In addition, the semi annual report shows that the company will successively launch new products of power management IC, MOSFET, RF and other businesses to further open up growth space.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 25.651 billion yuan, 35.069 billion yuan and 43.643 billion yuan respectively, and the net profit attributable to the parent company will be 4.765 billion yuan, 6.049 billion yuan and 8.112 billion yuan respectively, giving a “Buy-A” investment rating.
Risk tip: downstream demand attenuation risk, market competition risk, product R & D is less than expected, and customer expansion is less than expected.
