\u3000\u3 Guocheng Mining Co.Ltd(000688) 595 Chipsea Technologies (Shenzhen) Corp.Ltd(688595) )
Events
Chipsea Technologies (Shenzhen) Corp.Ltd(688595) released the annual performance express for 2021: in 2021, the operating revenue was 659 million yuan, a year-on-year increase of 81.67%, the net profit attributable to the parent was 93 million yuan, a year-on-year increase of 3.76%, and the net profit attributable to the parent after deduction was 101 million yuan, a year-on-year increase of 69.03%.
Key investment points
In 2021, the main business performed well, and all kinds of products increased rapidly
Excluding the amortization expense of equity incentive payment and investment loss, which have nothing to do with daily operation, the company realized a net profit attributable to the parent company of 183 million yuan in 2021, with a year-on-year increase of 144.15%, and a net profit attributable to the parent company of 176 million yuan after deduction of non equity incentives, with a year-on-year increase of 179.05%. The high growth of the company’s main business in 2021 mainly benefited from: 1) the company’s high-performance 32-bit MCU continued to break through in the fields of automotive electronics, industrial control, lithium battery management, fast charging, communication and computer, high-end consumption, expanded industry benchmark customers and began batch shipment; 2) Analog signal chain chips, such as high-precision ADC and AFE products, have grown steadily in the fields of industrial measurement, smart home perception and high-end consumption. BMS has entered the industry benchmark customers in the field of lithium battery management and increased rapidly; 3) Health measurement aiot chip benefits from the rapid growth in the number of intelligent access devices of the Internet of things and the continuous growth in the application demand of personal and professional intelligent health devices brought by the development of industrial Internet and Hongmeng ecological business.
Local high-quality signal chain manufacturers have broad growth space for the three businesses
The company is a full signal chain chip design enterprise integrating perception, calculation, control and connection. At present, it has three main product lines: signal chain product line. Based on independent high-precision ADC technology and high reliability MCU technology, the company has complete signal chain design ability, which is mainly applied to industrial measurement, automotive electronics Consumer electronics, including many areas of Internet of things perception, including human parameter measurement, human-computer interaction, equipment parameter measurement and environmental parameter measurement. In the field of human-computer interaction, the company continues to consolidate its leading position in the field of pressure touch, and its products have been fully introduced to well-known customers in vivo, Xiaomi, Zimi, Meizu, Nubia, black shark and other industries. In the field of lithium battery management, the company has launched BMS chip, whose performance index exceeds the mainstream products of foreign benchmark enterprises, and has realized mass supply. MCU product line, the company’s product structure has been continuously optimized, and the proportion of 32-bit high-end MCU has increased rapidly in 2021, including communication and computer (such as PC and optical module), mobile phone, industrial control (motor control, industrial instrument, power equipment, sensor, etc.), lithium battery management in new energy, high-end consumption (such as wearable equipment, high-end electronic cigarette, etc.), automobile central control Medical and health care and other fields have achieved rapid growth. At the same time, 8-bit MCU has maintained rapid growth in application fields such as PD fast charging, electronic cigarette, personal care, TWS headset and so on. For the health measurement aiot product line, the company’s chip is an Internet of things system with ADC, MCU and ble / WiFi as the core basic hardware architecture, combined with algorithms and big data capabilities. At present, it has been adopted by head customers such as Xiaomi and has become a strategic partner of Huawei Hongmeng. In the first half of 2021, the company deepened its cooperation with Huawei Hongmeng and launched Bluetooth solution based on Hongmeng Zhilian. In terms of project cooperation, 76 reports have been completed, and the shipment volume of chips connected to Hongmeng Zhilian has exceeded 2 million.
Convertible bond overweight vehicle regulation MCU, high value-added products, improve profit center
In 2021, the company’s first vehicle specification level signal chain MCU passed aec-q100 certification and can be applied to intelligent cockpit and other fields. At present, it has been introduced into the new product design of automobile front loading enterprises. The company plans to raise no more than 410 million yuan in convertible bonds, of which 294 million yuan is used to invest in automobile MCU chip R & D and industrialization projects. At present, the planned products include M series and R series. M series products are mainly used in end control, such as window, lamp, wiper, air conditioner, etc., and R series are mainly used in domain control related fields, such as powertrain, automobile chassis, etc. It is estimated that the after tax financial internal rate of return of the project is 22.29%, and the after tax investment payback period of the project is 7.69 years (including 3-year construction period), which has a good economic effect.
The wave of automotive electrification and intelligence has driven the rapid increase of the market scale of on-board MCU. IHS data predicts that the global market scale of automotive MCU will increase to US $8.9 billion in 2024. According to the data of prospective industry research institute, the market demand scale of MCU in China’s automotive electronics industry is expected to reach about 5.6 billion yuan by 2026. We believe that the company’s layout of high barrier and high value-added vehicle specification products has further expanded the business application field, improved its core competitiveness, and is expected to improve the profit center of the enterprise.
Profit forecast
It is predicted that the company’s revenue from 2021 to 2023 will be 659 million yuan, 951 million yuan and 1253 million yuan respectively, and the EPS will be 0.93 million yuan, 1.88 million yuan and 2.65 yuan respectively. The corresponding PE of the current stock price will be 99, 49 and 35 times respectively, giving the “recommended” investment rating.
Risk tips
Downside risks of industry prosperity, lower than expected issuance of convertible bonds, lower than expected progress of new products, increased industry competition, changes in overseas policies, etc.
