\u3000\u3000 Giantec Semiconductor Corporation(688123) (688123)
The company's main business is EEPROM. The company is a global high-tech enterprise of integrated circuit design, specializing in the R & D, design and sales of high-performance and high-quality integrated circuit products, and providing application solutions and technical support services. At present, the company has three main product lines: nonvolatile memory chip, voice coil motor driver chip and smart card chip. The products are widely used in smart phones, LCD panels, Bluetooth modules, communications, computers and peripherals, medical instruments, white appliances, automotive electronics, industrial control and many other fields.
Giantec Semiconductor Corporation(688123) is the leading company of EEPROM in China. The company's EEPROM product line includes series EEPROM products with standard interfaces such as I2C, SPI and microwire, as well as SPD / SPD + TS (temperature sensor) series EEPROM products mainly used in computer and server memory modules. The company's EEPROM products have the characteristics of high reliability, wide voltage, high compatibility and low power consumption. They are rated as Shanghai famous brand products during 2013-2019. The products are widely used in smart phones, LCD panels, Bluetooth modules, communications, computers and peripherals, medical instruments, white appliances, automotive electronics, industrial control and other fields.
The company's operating revenue in the first three quarters of 2021 was 392 million yuan, a year-on-year increase of 7.53%; The net profit attributable to the parent company was 83 million yuan, a year-on-year decrease of 30.87%; The net profit deducted from non parent company was 57 million yuan, a year-on-year decrease of 0.48%. In 21q3, the company realized an operating revenue of 128 million yuan and a net profit attributable to the parent company of 17 million yuan, with a year-on-year decrease of 12.84% and 76.90% respectively, mainly due to the decline of income and Semiconductor Manufacturing International Corporation(688981) loss of 16 million yuan from changes in fair value. After deducting the impact of relevant investment income, the net profit attributable to the parent company increased by 19.34% year-on-year. With the recovery of smartphone demand and the recovery of EEPROM market demand, at the same time, the company has a large amount of new generation EEPROM, and the company's profitability will rise steadily in 2022.
EEPROM industry has broad market space. With its high reliability, millions of erasures, low cost and many other advantages, EEPROM has long met the stable data storage needs of traditional application fields such as consumer electronics, computers and peripherals, industrial control, white appliances and communication. The market scale shows a steady development trend before 2016. With the upgrading of smart phone camera module and the development of Internet of things, EEPROM has rapidly developed new markets such as smart phone camera, automotive electronics, smart meter, smart home and wearable devices with its own advantages. At the same time, the rapid intelligent development of traditional application fields has also increased the demand of EEPROM. According to CCID Consulting, The market scale of EEPROM showed an inflection point from 2016 to 2017.
Smart phone cameras and automotive electronics have become the main drivers of EEPROM market growth. Driven by factors such as 5g commercial driving the replacement of smartphone stock, the improvement of multi camera penetration rate and the upgrading of camera module, the demand for EEPROM in smartphone camera field will continue to grow. According to CCID Consulting data, the demand for EEPROM in smartphone camera field will reach 5.525 billion by 2023. In addition, with the continuous development of automotive intelligent networking and electrification, the penetration rate of automotive electronic products will increase rapidly, further driving the growth of EEPROM market scale. According to CCID Consulting data, the demand for EEPROM in the automotive electronic field is expected to reach 2.387 billion by 2023.
LCD panel and DDR memory module are also important application fields of EEPROM. (1) With the increasing demand for high-definition display and 4K, the global demand for large-size LCD panels has maintained a steady growth in recent years, which has boosted the demand for EEPROM for LCD panels. According to CCID Consulting data, the demand for EEPROM in the field of LCD panels is expected to reach 968 million by 2023. (2) Driven by home office, online education, cloud computing and big data, the demand scale of computers and servers has increased significantly. According to the report released by IDC, the global shipments of computers and servers exceeded 300 million and 12.2 million respectively in 2020. Based on the calculation that each computer is equipped with 1-2 memories, each server is equipped with 10-12 memories and each memory is equipped with 1 EEPROM, the demand for EEPROM in the field of DDR memory modules will exceed 420 million in 2020.
Giantec Semiconductor Corporation(688123) announced the 2022 restricted stock incentive plan (Draft) on January 28, 2022
The number of restricted shares to be granted in the incentive plan is 1.8 million, accounting for about 1.49% of the total share capital of the company at the time of announcement of the draft incentive plan. Among them, 1584000 shares were granted for the first time, accounting for about 1.31% of the company's total share capital of 120841867 shares at the time of announcement of the draft incentive plan and 88.00% of the total equity granted this time; 216000 shares are reserved, accounting for about 0.18% of the company's total share capital of 120841867 shares at the time of announcement of the draft incentive plan, and the reserved part accounts for 12.00% of the total equity granted this time.
The grant price (including reserved grant) of restricted shares in the plan is 22.64 yuan / share.
The incentive objects granted by this incentive plan for the first time shall not exceed 78, accounting for 48.75% of the total 160 employees of the company at the end of 2020, including the company's core technicians, middle managers and technical (business) backbone personnel.
Investment suggestion: the company is the leading company of EEPROM in China. Considering the pulling effect of ddr5's rapid penetration on the company's EEPROM business in 2022, as well as the product upgrading of the company's voice coil motor and smart card chip and the expansion of downstream smart phone cameras, automotive electronics and other application fields, we maintain the forecast of net profit of 120 / 180 / 220 million yuan from 2021 to 2023, Corresponding to pe69x / 45x / 38x, maintain the "buy" rating.
Risk tip: the growth rate of consumer electronics slows down and the demand is weak; Risk of rising material costs.
