\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
Events
Will Semiconductor Co.Ltd.Shanghai(603501) release the annual performance forecast for 2021: it is estimated that the net profit attributable to the parent company in 2021 will be 4.468 billion yuan - 4.868 billion yuan, with a year-on-year increase of 65.13% - 79.91%, and the net profit attributable to the parent company after deduction of non profits will be 3.918 billion yuan - 4.268 billion yuan, with a year-on-year increase of 74.51% - 90.10%.
Key investment points
The performance forecast of 2021 is in line with expectations and diversified businesses develop in a coordinated manner
According to the calculation of the company's annual performance forecast in 2021, the company's net profit attributable to the parent company in Q4 in 2021 is expected to be 950 million yuan - 1.35 billion yuan, with a year-on-year increase of - 3.06% - 37.76% and a month on month increase of - 25.43% - 5.97%; The net profit deducted from non parent company was 850 million yuan to 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%. The company's performance growth mainly benefited from the continuous optimization of market layout, deep cultivation of main business and increasing R & D investment in 2021, resulting in the continuous and stable growth of semiconductor design business. At the same time, 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 sustained growth. In addition, the company's touch and display solutions have also brought new profit growth points to the company with the launch of the company's new tddi products and the further expansion of customers. On the whole, 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.
CIS ranks third in the world and automotive CIS ranks second in the world. The company has a solid leading position in the industry
The company is the leading enterprise with the third market share in the global CIS field. Its products are widely used in consumer electronics, security, automobile, medical treatment, AR / VR and other fields, including smart phones, tablets, laptops, webcams, security equipment, automobile and medical imaging.
In the field of mobile phone CIS application, although the mobile phone market has gradually entered the stock era, the development trend of multi camera and high-level camera makes the shipment of mobile phone CIS products continue to grow. Icinsights expects that the sales of mobile phone CIS will increase at a compound annual growth rate of 6.3% in the next five years, reaching US $15.7 billion by 2025. In January 2022, the company released 200 million pixel resolution CIS products with a size of 0.61um pixel, so far realizing the full coverage from low-end 8 million pixels to high-end 64 million pixels and 200 million pixels. It is expected that the company will provide more than 40 million image sensor products with a resolution of more than 100 million pixels to smartphone suppliers in 2022.
In the field of automotive CIS application, with the upgrading of intelligent driving from L1 to L2 / L3, the number of cameras has increased from about 5 to 8-13. At the same time, the pixel of on-board CIS has also been gradually upgraded from vga-1m-2m-8m. The value of a single camera has gradually increased, and the increase in volume and price has led to the improvement of the market scale of on-board CIS. Icinsights expects that cars will become the fastest-growing application field of CIS in the next five years, By 2025, the market scale of on-board CIS will reach US $5.1 billion. The company is the second largest automotive CIS supplier in the world after ansenmey, providing more than 30 automotive CIS products, including front view, surround view, rear view, cabin, ADAS and other fields, which are widely used in European, American, Asia Pacific and other automotive brands. Since 2022, the company has successively released new products of 3 million, 5 million and 8 million pixel on-board CIS.
In other CIS application fields, the company has complete CIS product lines in medical treatment, UAV, security monitoring, AR / VR and other fields, with a high market share. According to icinsights data, the growth forecast of CIS in various fields in the next five years: medical and scientific system (compound annual growth rate of 26.4%, reaching US $1.8 billion in 2025); Security (compound annual growth rate of 23.2%, reaching US $3.2 billion in 2025); Industry Siasun Robot&Automation Co.Ltd(300024) and the Internet of things (CAGR of 21.8%, reaching US $3.5 billion in 2025).
Tddi broadens the business boundary and builds the second growth curve with simulation and RF
The tddi product line of the company is complete, realizing full coverage from HD720P to fhd1080p, display frame rate from 60Hz, 90hz, 120Hz to 144hz, and touch point reporting rate from 120Hz to 240Hz. With rich experience in mass production among the world's leading mobile phone customers, the company achieved rapid mass production. In the first half of 2021, the revenue reached 613 million yuan, and the business proportion increased to 5.81%. At the same time, the company acquired the R & D and manufacturing of tddi and DDIC in Shenzhen gidith layout Aftermarket in 2021.
In addition, the company's business also includes discrete devices (TVS, MOSFET, Schottky diode, etc.), power management IC (charger, LDO, switch, DC-DC, LED backlight drive, etc.), RF chip and other product lines.
We believe that the company has a solid leading position in the CIS field and is expected to benefit from the rapid expansion of the on-board CIS market under the intelligent vehicle, so as to further improve its market position. At the same time, the company's layout in tddi, analog, RF and other directions is gradually realized, which is expected to become the second growth curve of the company's long-term development in the future.
Profit forecast
It is predicted that the company's revenue from 2021 to 2023 will be 26.629 billion yuan, 35.048 billion yuan and 43.283 billion yuan respectively, and the EPS will be 532, 6.96 and 8.93 yuan respectively. The corresponding PE of the current stock price will be 48, 37 and 29 times respectively, giving the "recommended" investment rating.
Risk tips
The downside risk of industry prosperity, the risk that the R & D Progress of new products is less than expected, the risk of intensified industry competition, the risk of overseas policy changes, etc.
