\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
Event: the company released the performance express of 2021, and it is expected to realize the net profit attributable to the parent company of 4.47 to 4.87 billion yuan, an increase of 65% to 80% year-on-year; It is expected to realize a net profit of RMB 3.92 billion to 4.27 billion, with a year-on-year increase of 75% to 90%.
The competitiveness of mobile phone CIS continues to improve: there is a strong demand for high-pixel mobile phone CIS products. TSR predicts that in 2022, the shipment of mobile phone front image sensors with a resolution of more than 40m will reach 43 million, and the shipment of rear image sensors with a resolution of more than 50m will exceed 350 million. The company has a complete product line in the CIS field, leading the layout of small pixel size. At the same time, high-level products continue to make breakthroughs. In January 22, the company released 200 million pixel mobile phone CIS with a pixel size of 0.61um, and the product line coverage extends from 8m to 64M to 200m. The competitiveness of high-level CIS field continues to improve.
Car CIS technology continues to upgrade and is expected to accelerate its growth: the number of car mounted cameras per car is expected to increase from the current average of 2 to 11-15 in the future, bringing an increase of more than 10 billion US dollars to the CIS market. At present, the company's car camera chip is mainly used for European and American automobile brands, accounting for more than 20% of the vehicle CIS market. In the future, it is expected to carry out more cooperation with Chinese customers to boost the share. Among the automotive CIS products certified by aec-q (as of September 21), ansenmey mainly focuses on VGA (0.3m), accounting for 48%; The distribution of weir's product line is more uniform, and the product layout is more perfect in the field of relatively high pixels, with products of 1m and above accounting for 90%; Since the beginning of the year, the company has continuously released new automotive CIS products, covering 3M, 5m, 8m and other pixels, which can be used for forward-looking, in vehicle monitoring and other applications. With the upgrading of automotive cameras to higher pixels, weir is expected to usher in the opportunity of continuous optimization of product structure.
Build a comprehensive design company internally and externally: the company has acquired some assets of Synaptics Asia and Shenzhen gidith of touch display business, forming a rich product portfolio. With the advantages of the group's supply chain and sales channels, the market share is expected to increase rapidly. Weir has also made outstanding achievements in RF products such as rfswitch, tuner and LNA. In addition, many other product lines of the company have cooperated with the supply chain of well-known Chinese mobile phone brands, including discrete devices (TVS, MOSFET, Schottky diode, etc.), power management IC (charger, LDO, switch, DC-DC, LED backlight drive, etc.), RF devices and IC, MEMS microphone sensor and other product lines, It is expected to grow into a comprehensive IC design company with a leading multi product line.
We predict that the company's net profit attributable to the parent company in 21-23 years will be 4.58 billion yuan, 5.97 billion yuan and 7.67 billion yuan respectively. According to the comparable company, it will maintain the PE valuation of 69 times in 21 years, corresponding to the target price of 360.87 yuan, and maintain the buy rating.
Risk tips
The research and development of high-end CIS is less than expected; The market share of mobile phone CIS declined; Uncertainty caused by the epidemic; The research and development of power devices is less than expected.
