\u3000\u3000 Leaguer (Shenzhen) Microelectronics Corp(688589) (688589)
Event: the company issued the performance forecast for 2021, and the company issued the announcement of annual performance increase in 2021. The company is expected to achieve revenue of 355-365 million yuan (+ 65% – 69%), net profit attributable to parent company of 42-45 million yuan (+ 51% – 62%), and net profit deducted from non attributable to parent company of 29-32 million yuan (+ 40% – 54%).
The company’s performance is in line with expectations, and the non power business has achieved rapid growth. In 2021, the smart grid business realized an operating revenue of 305-310 million yuan (+ 51% – 53%). The non power Internet of things business achieved an operating revenue of 50-55 million yuan (+ 279% – 317%) in 2021. By the end of 2021, the amount of orders on hand had exceeded 170 million yuan (+ 130%).
In the era of interconnection of all things, power line carrier is at the right time. With the advent of the era of Internet of all things, the demand for intelligence in various fields continues to improve, and the stability and speed of WiFi can not meet the existing needs. Power line carrier communication (PLC) refers to the use of existing power lines to transmit signals, which almost does not need to lay new lines. The signal is stable and has broad development prospects.
Self developed chips have complete independent intellectual property rights and are ready to go after years of accumulation. The company has independent intellectual property rights in communication algorithms, low-power design, MCU design, channel processing algorithms and other technologies, provides complete solutions for power line carrier including self-developed chips, modules and terminals, and has 39 invention patents, 6 utility model patents, 80 software copyrights and 30 integrated circuit layout designs.
Strong introduction in different business areas and broad downstream market space. The company is a first-class supplier of the State Grid and participates in the formulation of dual-mode communication standards of the State Grid. The State Grid has 500-600 million meter market space and has a growth trend. The company is deeply engaged in the field of high-speed rail and is the main supplier of high-speed rail energy management. There is a large market space for the construction of new lines and the transformation of old lines. In the field of smart home appliances, a.o. Smith, Wanhe, Wanjiale and other well-known home appliance enterprises have realized batch application. In addition, leading enterprises in photovoltaic, smart home, smart street lamp, industrial lighting and other fields have been introduced.
Profit forecast: from 2021 to 2023, we expect the company’s revenue to be 360 / 535 / 762 million yuan (+ 66.8% / 48.8% / 42.3%) respectively; The net profit attributable to the parent company was 44 / 91 / 134 million yuan (+ 57.3% / 107.1% / 48.2%). The latest closing price corresponding to PE is 110 / 53 / 36 times respectively. The company is deeply engaged in the field of PLC. Under the background of Internet of all things, the performance is expected to achieve sustained and rapid growth. It is covered for the first time and is rated as “buy”.
Risk warning: the maintenance of customers is not as expected; The research and development of new products is not as expected.
