\u3000\u3000 Gigadevice Semiconductor (Beijing) Inc(603986) (603986)
Event: the company issued the announcement of annual performance increase in 2021; In 2021, the company is expected to realize a net profit attributable to shareholders of listed companies ranging from 2.28 billion yuan to 2.42 billion yuan, an increase of 1.399 billion yuan to 1.539 billion yuan compared with the same period of last year, with a year-on-year increase of 158.88% to 174.78%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 2.167 billion yuan to 2.307 billion yuan, an increase of 1.612 billion yuan to 1.752 billion yuan compared with the same period of last year, a year-on-year increase of 290.25% to 315.46%.
Under the background of terminal intelligent demand and supply chain localization trend, the company actively develops new markets, new customers, industry and other fields to increase revenue contribution. At the same time, the company continues to strengthen R & D, continuously improve the product line, accumulate product and technical advantages, and launch new products such as self-developed DDR4, wi fimcu and vehicle specification MCU. In addition, the company has diversified supply chain layout to support performance growth. We are optimistic about the continuous improvement and optimization of the company’s product line and the sustainable development of products.
The release of new memory products and the mass production of self-developed DDR4 opened the second growth curve of the company. (1) Flash: the company’s 55nm advanced manufacturing process spinorflash has been mass produced in the whole line, and the 2MB ~ 2GB capacity of vehicle specification spinorflash products has been paved in the whole line; Gd552g high-capacity products have passed the vehicle specification aecq-100 certification, and the whole series of gd25 vehicle specification storage products have been adopted in batches in many automobile enterprises. (2) DRAM: gdq2bfaa series, the company’s first private brand 4gbddr4 product, has achieved mass production, and has obtained DRAM customer orders in IPTV, security, consumer and other fields. It has realized national production from design, streaming, sealing, testing and verification, and helped the development and construction of domestic independent supply ecosystem.
MCU continues to expand the three major applications of automobile + industry + aiot, with broad market prospects. In 2021, the company achieved mass production of motor drive chips and power management chips, and successfully developed the first generation of Wi Fi products, the first generation of low-power products and vehicle specification MCU. (1) Wi fimcu: the company launched gd32w515 series wi fimcu, which was officially mass produced and supplied in December 21. It is oriented to smart appliances, IOT smart terminals and other applications. (2) Low energy consumption MCU: the company launched gd32l233 series new low energy consumption MCU, which adopts 40nm ultra-low power consumption (ULP) manufacturing technology, and is oriented to the market of battery powered equipment such as industrial meters and medical wearable devices. It was officially mass produced and supplied in November 2021. (3) Vehicle specification level MCU: the company’s first vehicle specification level MCU product has been rolled out and is oriented to the general body market. Samples will be provided for customer testing at the end of 2021, and mass production is expected to be realized around the middle of 2022.
The sensor is based on touch layout, ultrasonic / TOF and other new products, and the product matrix continues to be enriched. In addition to the existing touch products and fingerprint products, the company develops and arranges new product lines such as ultrasound and TOF. The upcoming OLED touch products and a new generation of LCD touch products are in a leading position in the industry and will be used to meet the market needs of consumer electronics, vehicle and so on.
Profit forecast and investment suggestions: under the background of continuous strong demand in the downstream market, the company’s new product introduction and continuous optimization of product structure drive the improvement of profitability;, We expect the net profit from 2021 to 2023 to be RMB 2.304/29.88/3.846 billion, 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; Industry cycle fluctuation risk; Product R & D and promotion are less than expected risks; Risk that the supplier’s capacity is less than expected
