\u3000\u3000 Unigroup Guoxin Microelectronics Co.Ltd(002049) (002049)
China's leading integrated circuit design enterprise has a five-year compound growth rate of net profit attributable to its parent company, which is expected to exceed 41.45%. The company was founded in 2001 and listed on the Shenzhen Stock Exchange in 2005, becoming the first listed company in the same industry. At present, the company is one of the largest listed companies in integrated circuit design in China, and has formed a business pattern dominated by integrated circuit business and supplemented by crystal business. Among them, the main products of integrated circuit business include intelligent security chip (Ziguang with the same core), special integrated circuit (Shenzhen Guowei), semiconductor power device (Wuxi Ziguang), etc. the main products of crystal business (Guoxin crystal source) are quartz crystal components. In 2020, the company's revenue fell by 4.67%, mainly due to the deformation of the merger scope. In the first three quarters of 2021, the company's revenue increased by 63.33% year-on-year, and the net profit attributable to the parent increased by 112.90% year-on-year. According to the performance forecast, the company's net profit in 2021 is expected to increase by 136% - 160%, and the five-year compound growth rate is expected to be 41.45% - 44.22%. Benefiting from the rapid growth of downstream special fields, the company's performance has increased rapidly.
The demand in special fields continues to be strong, and the company's performance is expected to continue to grow high. The subsidiary Shenzhen guomicroelectronics is a leading enterprise in China's special integrated circuits. Its products cover seven series of products, including microprocessors, programmable devices, memories, network buses and interfaces, simulator devices, SOPC system devices and customized chips, with nearly 500 varieties. At the same time, it can provide users with ASIC / SOC design and development services and domestic system chip level solutions. In the "14th five year plan", China's national security construction has accelerated, and the volume of advanced special equipment has accelerated. Thanks to the acceleration of incremental equipment and the promotion of domestic substitution of stock equipment, the company's special integrated circuit business is expected to continue to grow at a high speed.
The intelligent security chip business is expected to grow faster and its profitability is expected to continue to improve. The company's smart security chips mainly include smart card security chips represented by SIM card chips, bank IC card chips, social security card chips and traffic card chips, and terminal security chips represented by USB key chips, POS security chips and contactless reader and writer chips. They are used in many fields such as communication, finance, industry, automobile, Internet of things and so on. Benefiting from the global security enhancement and the gradual promotion of SIM cards, the company's SIM card chip business is expected to grow rapidly. With the promotion of the localization of financial card security chips and the release of the demand for the replacement of a new generation of ID cards, the company's intelligent security chip business is expected to grow faster.
Actively expand the downstream application of power semiconductor and crystal frequency device business, and comprehensively embrace the high boom track. The company actively expands the application fields of semiconductor power device products. While further improving the market share in high-power power supply, industrial control, motor control and other fields, the company gradually enters the charging pile, UPS, security and other markets, and begins to plan 5g, new energy, photovoltaic reverse transformation and other high boom downstream industries. The crystal frequency device business actively connected with the localization demand of frequency components of Chinese communication equipment manufacturers, and increased the industrial coordination within the group, mainly for 5g network communication, Internet of things, automotive electronics, medical devices, industrial control and other markets. In 2021h1, the sales revenue increased by 49.60% year-on-year. The company actively explores the application of power semiconductors and crystal devices in the high boom track, which is expected to create a new performance growth point.
Profit forecast and investment suggestions. Benefiting from the accelerated informatization process of China's special equipment, the release of the demand for e-sim and super card, and the increased demand for bank IC, social security card and ID card replacement, we expect the company's revenue to be 5.269/73.65/9.647 billion yuan respectively in 2021 / 22 / 23, the net profit attributable to the parent company to be 2.20/29.68/4.018 billion yuan respectively, the corresponding EPS to be 3.33/4.89/6.62 yuan respectively, and the corresponding PE to be 59 / 40 / 30 times respectively. Select domestic GPU leader Changsha Jingjia Microelectronics Co.Ltd(300474) , CMOS chip manufacturer Will Semiconductor Co.Ltd.Shanghai(603501) and integrated circuit design company Shanghai Fudan Microelectronics Group Co.Ltd(688385) , Chengdu Corpro Technology Co.Ltd(300101) as comparable companies. The average PE of comparable companies in 2022 is 48 times. Considering that the company, as a leading enterprise of China's special integrated circuits, should enjoy a certain valuation premium and be covered for the first time, it is given a "buy" rating.
Risk warning event: the order of special integrated circuit is less than expected; Technological development is less than expected; Restructuring risk of indirect controlling shareholders; Market space measurement deviation risk; The public information used in the research report may be delayed or not updated in time
