\u3000\u3000 Puya Semiconductor (Shanghai) Co.Ltd(688766) (688766)
On February 22, Puya Semiconductor (Shanghai) Co.Ltd(688766) released the performance express for 2021. The company expects to achieve a revenue of 1.103 billion yuan in 2021, a year-on-year increase of 53.75%; The net profit attributable to the parent company was 293 million yuan, a year-on-year increase of 239.96%; Deduct non net profit of RMB 274 million, with a year-on-year increase of 241.57%.
The performance of 21q4 increased rapidly. In the fourth quarter alone, the company’s Q4 net profit attributable to the parent company was about 70 million yuan, a year-on-year increase of 78.83%, with a decline month on month, mainly due to the impact of seasonal fluctuations in the industry. In addition, the company’s Q4 equity incentive expenses and other expenses are relatively large, which still has a good performance after restoration.
High end process nodes continue to break through, and the product and customer structure continue to be optimized.
(1) the company completed the development of a full range of 40nm process node nor flash products from 4m to 128M in the first half of the year, and all products were mass produced and shipped in Q3. The shipment proportion of 40nm medium and large capacity nor flash products has been increasing. Among them, the yield of representative 32m and 64mnor flash has reached a high level and has been supplied to customers in batches in Q4. On the one hand, the process upgrade can reduce the unit chip cost and improve the gross profit margin of products. On the other hand, it further reduces the chip size, making the company’s products more advantageous in the fields with strict requirements on chip size, such as the Internet of things and wearable devices. At the same time, the company’s etox process nor flash products have successfully completed the certification of many main chip manufacturers, and have started small batch shipment in Q4. It is expected to further contribute to revenue and enhance the company’s competitiveness in the field of medium and large capacity nor flash in the future.
(2) the company’s IIC + SPI interface EEPROM capacity covers a full range of 2k-2m, of which 2m high-capacity products have been mass produced in Q4 and supplied to well-known customers in Japan. At present, the development of 1.2V EEPROM products for the new generation of mobile phones is progressing smoothly and is in the process of streaming. It has entered the overseas customer supply chain in the field of industrial control and vehicle.
(3) in 2021, the company vigorously promoted market expansion, achieved major breakthroughs in the Internet of things, industrial control, automotive electronics and other fields, continuously optimized the product and customer structure, and increased the comprehensive gross profit margin. In addition, the company has not only further consolidated and improved its position in the Chinese market, but also achieved rapid performance growth overseas.
The layout of new products is comprehensive, boosting future performance growth. Looking forward to 2022, the company is expected to further expand the market share of small and medium-sized capacity products in the original memory field, continue to optimize the product and customer structure and improve profitability. In addition, the company’s MCU product development is progressing smoothly, and 32-bit M0 + products have been shipped to customers; The analog chip team has also completed the construction, and new analog chips are being produced in the wafer factory. In the future, with the continuous introduction of new products and the continuous laying of product lines, the company is expected to accelerate its growth.
Investment suggestion: we predict that the net profit attributable to the parent company in the year of 21 / 22 / 23 is expected to reach 293 / 400 / 517 million yuan, corresponding to 40 / 29 / 23 times of PE in the year of 22 / 23. The company has international competitiveness in the field of memory chips, and continues to explore new product lines. It has significant long-term growth and is covered for the first time. It is rated as “recommended”.
Risk warning: downstream demand is less than expected; Upstream capacity supply is limited; Market competition intensifies.
