\u3000\u3000 Ingenic Semiconductor Co.Ltd(300223) (300223)
Event:
The company released the performance forecast for 2021: it is expected that the company will realize the net profit attributable to the parent company of 808-984 million yuan in 2021, with a year-on-year increase of 1003.94% – 1244.82%; The net profit deducted from non parent company was 777-954 million yuan, with a year-on-year increase of 3693.01% – 4553.49%.
Key investment points:
The 2021 performance guidelines exceeded expectations, and the strong demand for multiple product lines drove the company’s profits. In 2021q4, the company realized a net profit attributable to the parent company of 1.73-3.49% Billion yuan, an increase of – 38.35% – 24.55% month on month and 240.26% – 587.50% year-on-year, mainly due to: (1) benefiting from the trend of automotive intelligence, terminal demand drives the large amount of memory chips and the continuous growth of revenue in the field of automotive electronics; (2) The strong demand for multiple product lines and the year-on-year growth of sales revenue in industries, medical treatment, high-end consumption and other fields have driven the high growth of the company’s performance.
Research and develop multi-point flowering to inject kinetic energy into the development of the company. The company continues to scale up R & D with remarkable results, which provides momentum for the development of the company: (1) in the storage field, DDR3 products are well arranged, and the R & D of new products such as low-power DDR4 is progressing smoothly. 8g products have been mass produced, and high-capacity DDR4 products are also under planning; In terms of norflash, the holding subsidiary Xinkai has completed the investment and testing of the first norflash chip in the consumer market, and the business revenue is expected to usher in a new round of growth in 2022; (2) In the field of simulation and interconnection, 2021h1 has carried out the R & D and investment of a variety of LED drive chips and automotive DC / DC regulation chips, and continued the R & D and testing of Lin, can and other network transmission products for automotive applications. Some products have been gradually mass produced and are expected to contribute revenue in 2022. At the same time, the research and development of vehicle specification ISP products has been started and is progressing smoothly; (3) In the field of intelligent video chips: NVR chips for back-end equipment in the field of professional security will be completed in 2021 to further enrich the video chip product line, and mass production is expected to be realized in 2022.
Profit forecast and investment rating: Ingenic Semiconductor Co.Ltd(300223) after the acquisition of ISSI, the platform layout of “CPU + storage + simulation” is formed, with significant synergy, continuous optimization of production and supply, and continuous improvement of profitability. The company’s overweight layout in the fields of MPU, intelligent video chip, on-board lighting and on-board camera is conducive to grasping the domestic substitution opportunities and the business cycle of downstream demand, and rising up in the wind and growing rapidly. We raised the profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 940 (+ 0.78) / 1.95 (+ 0.91) / 1.467 (+ 106) million yuan respectively, corresponding to EPS of 1.95/2.48/3.05 yuan / share respectively, corresponding to the current PE valuation of 56 / 44 / 36 times respectively, maintaining the “buy” rating.
Risk warning: the downstream demand is less than the expected risk; The company’s new product research and development is less than the expected risk;
