\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
Event comments
On January 27, 2022, the company issued the announcement of performance increase in 2021. It is estimated that the net profit attributable to the parent company in 2021 will be 4.468-4.868 billion yuan, with a year-on-year increase of 65.13% - 79.91%; The net profit deducted from non parent company was RMB 3.918-4.268 billion, with a year-on-year increase of 74.51% - 90.10%.
It is estimated that the net profit attributable to the parent company will reach 950-1.35 billion yuan in the fourth quarter of 2021, with a year-on-year increase of - 3.06% - 37.76% and a month on month increase of - 25.49% - 5.88%; The net profit deducted from non parent company was 850-1.2 billion yuan, with a year-on-year increase of 28.98% - 82.09% and a month on month increase of - 22.87% - 8.89%.
Continuously optimize the market layout, deepen the main business, continuously increase R & D investment, and the semiconductor design business continues to grow steadily. After 13 years of endogenous and epitaxial development, the company has become a Chinese IC design leader with CIS business as the core and realizing the coordinated development of semiconductor design and distribution business. Howell technology acquired in 2018 ranks among the top three in the world in terms of market share in the field of CMOS image sensors. In 2021, we will continue to optimize the market layout, deepen our main business, and continuously increase R & D investment, resulting in the continuous and stable growth of semiconductor design business.
The car and security CIS business has achieved rapid growth. In terms of CMOS image sensor business, with the growth of market demand for image sensors in automobile, security and other fields and the improvement of the company's market share in relevant fields, the performance of the company's image sensor solutions has achieved continuous growth. The continuous deepening of automotive intelligence in the future is expected to lead to a significant increase in the demand and penetration of on-board CIS. As the world's top two automotive CIS supplier, the company is expected to benefit from the rapid growth of the industry and the steady increase of market share in the future.
The launch of tddi new products and the expansion of customers have opened up new growth points for the company's performance. In 2021, the company's touch and display solution business also brought new profit growth points for the company with the launch of the company's tddi new products and the further expansion of customers.
Investment advice
As one of the world's leading CIS companies, the company will benefit from the rising volume and price of CIS in the field of automotive CIS. At the same time, the company continuously integrates various business systems and product lines, gives full play to the synergy of various business systems, and steadily improves the company's sustainable profitability. It is estimated that the company's revenue from 2021 to 2023 will be 27.557 billion yuan, 37.141 billion yuan and 47.990 billion yuan respectively. The net profit attributable to the parent company was 4.536 billion yuan, 5.838 billion yuan and 7.301 billion yuan respectively. EPS is 522 million yuan, 672 million yuan and 841 million yuan respectively, and the corresponding PE is 51x, 39x and 32x respectively. Maintain a "strongly recommended" rating.
Risk tips
The progress of automobile intellectualization is less than expected, and the cost pressure caused by the price rise of upstream raw materials and OEM.
