\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
Events
On January 27, the company released a performance forecast that the net profit attributable to the parent company in 2021 was 4.468 billion yuan ~ 4.868 billion yuan, a year-on-year increase of 65.13% - 79.91%, and the net profit deducted from non attributable to the parent company was 3.918 ~ 4.268 billion yuan, a year-on-year increase of 74.51% ~ 90.10%.
Commentary
The net profit of the whole year increased rapidly in 21 years. The net profit attributable to the parent company in the whole year of 21 years was 4.468 billion yuan ~ 4.868 billion yuan, with a year-on-year increase of 65.13% - 79.91%; The net profit attributable to the parent company in 21q4 was RMB 949 ~ 1.349 billion, with a year-on-year increase of - 3.16% ~ 37.65%. The company's profits continued to grow at a high rate, mainly benefiting from: 1) the high growth in the demand for image sensors in automobile, security and other fields, and the company's share continued to increase with the advantages of products and technology; 2) The launch of tddi new products and the further expansion of customers, and the touch and display solution business have brought new profit growth points to the company.
Automotive CIS and tddi business drive the company's new growth. 1) Benefiting from the trend of automobile electric + self driving, it is expected that the number of cameras carried by a single car will increase from 2 at present to 6 / 12 in 25 / 30 years. The improvement of pixels will increase the value of a single car. It is expected that the market scale of automotive CIS in 21-30 years will exceed 28%. Relying on its cis technology leadership, the company has launched a variety of new products and quickly seized the market. At the same time, its competitor Ansenmei's share has decreased due to capacity constraints. It is expected that the global market share will exceed 30% in 21 years and 40-50% in 22 years. It will surpass Ansenmei and become the first in the world. The company's automotive CIS business is expected to continue to grow at a high rate in the next five years. 2) The company acquired and integrated tddi business in 20 years, superimposed on the production capacity shortage in 21 years. With the channel and brand advantages in the mobile phone field, the tddi market grew rapidly throughout the year. In 22 years, with the introduction of new products and brand customers, it is expected that the revenue will continue to grow high.
Multi business collaboration is worth looking forward to. The company has in-depth layout in other automotive non CIS product businesses (including vehicle regulation MCU, SerDes interface, power management IC, etc.) and armr technical solutions. We believe that with the gradual construction of business ecology, the company is expected to continue its growth in analog circuit products, emerging markets (medical treatment, IOT, industrial testing, Internet of things, etc.) and other businesses such as traditional security and Internet of things markets.
Investment advice
It is estimated that the net profit attributable to the parent company in 21-23 years will be 4.68/6.5/8.03 billion yuan, with corresponding EPS of 5.4/6.9/9.2 and PE of 50 / 39 / 29 times respectively. Continue to maintain the "buy" rating.
Risk tips
Risk of insufficient capacity; exchange-rate risks; The risk of lifting the ban on stocks; Goodwill impairment risk, etc.
