\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
The company released the performance forecast: the net profit attributable to the parent company will reach 4.47-4.87 billion yuan in 2021, an increase of 65% – 80% at the same time; Deduct the net profit not attributable to the parent company of RMB 3.92-4.27 billion, an increase of 75% – 90% at the same time. According to the median forecast, the net profit attributable to the parent company in 21q4 was 1.15 billion yuan, an increase of 17% in the same period and basically the same month on month; The net profit deducted from non parent company was 1.02 billion yuan, an increase of 56% over the same period, which was basically the same month on month.
The second growth curve opens, and the on-board CIS and tddi grow rapidly. 1) CIS: CIS accounts for 50% of the value of vehicle mounted camera head. Under the trend of vehicle intelligence and hardware embedding, CIS enjoys the opportunity of high growth certainty. In the field of on-board CIS, the company can provide more than VGA to 8m series products, cut into Mobileye, NVIDIA and Huawei platforms, take the lead in market share in Europe and China, and continue to expand market share with capacity advantages and technological breakthroughs. In addition, CIS also has a good growth in security, endoscope and VR / ar. there is still room for growth in mobile applications under the pursuit of high pixels. 2) Tddi: with the help of the world’s leading mobile phone customers, front mounted tddi has achieved rapid mass production. Gidith has made great efforts in the rear mounted market and deepened the layout of tddi and DDIC. The revenue of 21h1 is 610 million yuan, close to the annual revenue of 20 years.
Platform companies have multi-point layout, and their growth businesses are progressing layer by layer. Following CIS and tddi business, the company has gradually made efforts in the field of discrete devices, power management, RF chips and other analog devices, and the growth business has progressed layer by layer. Discrete device layout for many years, master many core technologies such as multi-mode and multi frequency power amplifier; LDO and other power management chips realize the import substitution of high-end models; RF chip is committed to the research and development of high-performance products, and has launched two 5g application RF devices. The company’s business flourishes at many points, builds a platform company, and comprehensively distributes multiple application fields such as mobile phone, Internet of things, security and automobile, with abundant growth momentum in the future.
Investment suggestion: considering that the sales volume of the mobile phone industry is affected by consumption, we slightly reduce the performance forecast. It is estimated that the net profit in 2021, 2022 and 2023 will be 45 / 60 / 81 (original value is 45 / 64 / 8) billion yuan respectively, corresponding to 51 / 38 / 28 times of PE. Considering that the company’s mobile phone CIS share is the top three in the world, the vehicle CIS share is the second in the world, and the future growth potential brought by non mobile phone CIS and simulator parts, Maintain the “buy” rating.
Risk warning event: the penetration rate of ADAS is lower than expected, and the launch of new products is lower than expected.
