\u3000\u3000 Rockchip Electronics Co.Ltd(603893) (603893)
Event: the company issued the announcement of annual performance increase in 2021; In 2021, the company expects to realize a net profit attributable to the parent company of 580-620 million yuan, with a year-on-year increase of 81-94%; It is expected to realize net profit deduction of RMB 424 million to RMB 464 million, with a year-on-year increase of 56% to 71%.
The demand for aiot in the downstream application field of the company’s products is growing rapidly, including smart home, commercial office equipment, intelligent education electronics and other artificial intelligence internet of things devices, which promotes the growth of the company’s sales in this field; The new products include rv11xx and rk356x series products, which have achieved large-scale sales. We are optimistic about the launch of the company’s new products and the continuous introduction in different application scenarios, driving the rapid growth of performance.
The new generation of flagship product rk3588 has been released, with broad application in eight application directions. The company has a complete range of chip products to adapt to the market positioning of different terminal products. The company continues to bring the development of new downstream application fields through the development of new products. The eight application directions of rk3588 include smart cockpit, smart large screen, virtual / augmented reality, edge computing, IPC, NVR, high-end tablet and armpc. Rk3588 adopts an 8-core architecture of 8nm and has the characteristics of rich peripheral interfaces and high integration. The product has its own security level ISP, supports 48 million pixels, and supports full truth 8K decoding, 8K coding and 8K display output.
Rk3568 enters the security back-end monitoring market, and AI + security trend helps open a new track. On October 28, Zhejiang Dahua Technology Co.Ltd(002236) jointly released a new generation of security NVR products, which uses the company’s rk3568 chip and is equipped with a new armv8 2-A quad core A55 architecture, GPU is mali-g52 with dual core architecture, built-in Rockchip Electronics Co.Ltd(603893) self-developed third-generation independent NPU, with computing power up to 1tops, ensuring the stability and efficiency of data processing of back-end equipment. The company’s cooperation with Dahua marks the mature landing of AI + security. In the future, the company will continue to provide comprehensive and reliable support for hardware and software for the security industry.
Issue the equity incentive plan to demonstrate the company’s confidence in medium and long-term development. The company plans to grant 2.84 million stock options to the incentive objects, including 137 core technicians and technical business backbones. In the three fiscal years of the exercise period, the performance assessment shall be carried out and the exercise shall be carried out annually; Based on the net profit in 2021, the net profit growth rate in 2022 shall not be less than 20%. Referring to the announcement of the company’s performance increase in 21 years, the net profit in 2022 shall not be less than 696-744 million; The growth rate of net profit in 2023 shall not be less than 44%; The growth rate of net profit in 2024 shall not be less than 73%; The assessment of the company will continue until 2024. With the introduction of new products and new applications, the future growth of the company can be expected.
Profit forecast and investment suggestion: benefiting from the strong demand of aiot industry and the steady progress of the company’s R & D and new product launch, we predict the company’s net profit of 602 / 920 / 1279 million yuan from 2021 to 2023, maintaining the company’s “buy” rating.
Risk warning: the forecast data is only preliminary accounting data, and the specific and accurate financial data shall be subject to the audited annual report of 2021 officially disclosed by the company; The risk of intensified industry competition; Customer churn risk; Risk of capacity shortage
