\u3000\u3000 Will Semiconductor Co.Ltd.Shanghai(603501) (603501)
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 4.47-4.87 billion yuan, with a year-on-year increase of 65.1% to 79.9%; The net profit deducted from non profits was 3.92 billion to 4.27 billion yuan, an increase of 74.5% to 90.1% year-on-year
The company continued to make efforts in various businesses, optimized the market layout, grasped the opportunity of the growth in the demand for image sensors in automobile, security and other fields, and achieved rapid growth in performance. At the same time, the company has made great efforts in the field of touch display chips, bringing new profit growth points. We are optimistic about the platform strategy of the company, as the leader of CIS, to continue to expand to other products and applications, so as to realize the continuous growth of business in various fields.
Riding the wave of automotive intelligence, the company’s CIS products are upgraded iteratively, and the business scale continues to expand. In the context of automotive intelligence, the shipment of on-board cameras has increased significantly. According to yole’s data, the average vehicle camera carrying capacity will reach 3 in 2023. Benefiting from the increase of vehicle camera shipments and the rapid growth of vehicle CIS market, the automotive sector will continue to become the fastest growing segment of CIS. In terms of R & D, as of the first half of the year, the company had 4257 authorized patents; The company continues to cultivate various product lines, and continues to expand in the field of vehicle applications. In January 2022, the company released many new products such as ox08b40, ox05b1s and ox03d at CES exhibition. With the in-depth cooperation with NVIDIA, Renesas, seeking machines and other manufacturers, the company will further consolidate the industry position of on-board CIS and firmly grasp the growth opportunities of the industry.
The field of touch display chips continues to make efforts, adding new impetus to performance growth. With the popularity of smart phone full screen, the demand for tddi and DDIC has further increased. According to cinno research data, the growth rate of global DDIC market is expected to reach 56% in 2021 and US $12.9 billion in 2022. After acquiring the tddi business of Synaptics Asia in April 2020, the company launched its sub brand gidith in August 2021, focusing on the R & D and sales of tddi and DDIC products in the aftermarket, and further improved the company’s layout in the field of touch display chips on the basis of the existing front tddi product line. With the launch of the company’s new tddi products and the further expansion of customers, the touch and display solutions business will add new impetus to the company’s performance growth.
The business scope blossoms at multiple points, and the advantages of platform development appear. The company has a wide range of business, covering CIS, tddi, power semiconductor and RF chip, and constantly enriches its product line. It has launched a variety of new products, such as wd31089q fully integrated synchronous boost converter, hws7804lma 5g RF switch chip and esd56161d30 TVs device. Through the continuous integration of the company’s business system and product line and the synergy of various business systems, we are optimistic about the continuous improvement of the company’s profitability in the future.
Profit forecast and investment suggestions: we are optimistic about the company’s platform layout as a cis leader. Driven by the upgrading of industry demand, our future performance will continue to grow. We maintain the net profit forecast of RMB 4.775/63.82/8.241 billion from 2021 to 2023, and maintain 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 2021 annual report officially disclosed by the company; The downstream application demand is less than the expected risk; The risk that customer expansion is less than expected; Business scale expansion brings business management risks.
