\u3000\u3000 Amlogic (Shanghai) Co.Ltd(688099) (688099)
Event: the company issued the announcement of annual performance increase in 2021; In 2021, the company is expected to realize an operating revenue of RMB 4.74 billion to 4.79 billion, with a year-on-year increase of 73.1-74.9%; The net profit attributable to the parent company was 780-840 million yuan, with a year-on-year increase of 579.2% to 631.5%; The non net profit deducted was 670 to 730 million yuan, a year-on-year increase of 688.2 to 758.8%.
The company accelerated the introduction of new products and applications, significantly increased the shipment of WiFi Bluetooth chips, and accelerated the introduction of chips in vehicle infotainment system, Siasun Robot&Automation Co.Ltd(300024) and other scenes. In addition, the company continued to consolidate its technical advantages and expand the global market. The shipments of intelligent set-top box chips and AI audio and video system terminal chips increased rapidly; We are optimistic that the company will consolidate its advantages in home applications, continue to develop towards new applications, including automobiles, Siasun Robot&Automation Co.Ltd(300024) and other products, and each product line will continue to grow.
The research and development of new products (car / WiFi chip) has blossomed and fruited, opening a new round of growth for the company. (1) Automotive electronic chip: the company’s v901d high-performance car entertainment processor is mainly used in the car front mounted entertainment system. Thanks to the long-term investment, the company’s automotive electronic chip has made further progress and received some customer orders; (2) WiFi Bluetooth chip: the company independently developed dual band high-speed data transmission WiFi 5 + BT5 that supports high-throughput video transmission 2. The single chip w155s1 was successfully mass produced in August 2021 and entered major customers. At present, the adaptation and large-scale mass production and shipment of Xiaomi’s portable streaming media device mitvstick and Xiaoai speaker art global version have been completed.
AI audio and video system terminal chips cover large overseas customers, and there is a broad market space for ecological development. The company has customer advantages, rich and diversified AI terminal chip solutions and broad market space in the future; With the launch of new products of Google and Amazon smart home equipped with the company’s chips in 2021, the contribution of the company’s AI terminal chips to the future performance is expected to continue to grow. (1) Smart doorbell: the global smart doorbell market is expected to grow at a compound annual rate of 25% from 2020 to 2024. (2) Smart speakers and smart displays: the company’s AI chips are applied to smart speakers and smart displays of Amazon and Google. The total shipments of the two 2021q2s account for about 40% of the total global shipments.
The demand for SoC chips of multimedia intelligent terminals is strong, and the volume of goods going out at home has increased significantly. The company has further expanded global market opportunities and successfully penetrated into overseas markets. In addition to operator equipment covering many regions such as North America, Europe, Latin America, Asia Pacific, Russia and Africa, the company is also deeply bound with overseas streaming media enterprises. At present, the company has become an SOC partner of netflixhailstorm program, The Netflix application is pre integrated into the Android TV set-top box reference platform, including the company’s s905x3 / C1 chip products, which have been applied to the joint solution of Netflix and Irdeto (the global leader in the field of digital platform network security).
Profit forecast and investment suggestion: the company will deeply plough the aiot track and expand to new applications to open up long-term market space. We will raise the profit forecast and adjust the net profit forecast for 2021-2023 from 701 / 10.04/1305 million yuan to 795 / 11.06/1436 million yuan, maintaining the “buy” rating of the company.
Risk warning: the forecast data is only preliminary accounting data, and the specific and accurate financial data shall be subject to the 2021 annual report officially disclosed by the company; Risk of product and technology iterations falling short of expectations; The risk that customer expansion is less than expected; Risk of intensified market competition
