Unigroup Guoxin Microelectronics Co.Ltd(002049) (002049)
The special business is expected to continue to grow rapidly next year and build a platform company around SOPC core products
At present, the company’s special business orders are full and production scheduling is smooth. At present, the company has made a comprehensive layout around SOPC and formed a series of product layouts with obvious competitive advantages. The company has been deeply engaged in the field of computing for decades. At present, it has formed a fist product of CPU + FPGA. At the same time, the company continues to improve its SOC capability, integrate more IP into its own computing platform, such as power management, interface, bridge, bus, storage and FPGA, and gradually form its own ecology. With the improvement of the company’s SOPC products and ecology, the company’s products gradually transition from a single hardware to providing the underlying core system, completing the transformation from “IP” to “system”. In addition, the company has comprehensively laid out v1-v7 series, and its product competitiveness has continued to take the lead. At the same time, the company has also increased R & D investment in the fields of digital power supply, high-performance clock, high-speed and high-precision ADC / DAC, made breakthroughs in some key technologies, and is expected to become a new growth point of the company during the 14th Five Year Plan period.
SIM card market share increased, and e-sim, VCU and NFC services opened the second growth curve
Due to the lack of global semiconductor production capacity, major SIM card chip manufacturers such as Samsung and Infineon began to withdraw from this field one after another. Benefiting from this, the company’s overseas business shipments of SIM cards reached hundreds of millions. As the current e-sim leading enterprise in China, the company is expected to benefit from the improvement of e-sim card penetration in mobile phones in the future. According to several overseas media, Apple may launch e-sim phones in some regional markets next year. We expect that Chinese Android manufacturers will follow up Apple’s move and launch e-sim phones in overseas markets. Because the area of e-sim chip is much larger than that of traditional SIM chip, the unit price and gross profit margin of the overall e-sim leading enterprise are much better than that of SIM card chip business.
Meanwhile, with the promotion of NFC in mobile phone applications driven by applepay and the third-party payment license of hovm, major mobile phone manufacturers began to pay attention to mobile payment business. NFC penetration in mobile phones is expected to increase. The mainstream NFC chips in the market are mainly provided by NXP and St, occupying the main market share. At present, the company has started to develop NFC chip business based on the original 13.56MHz receiving and transmitting business. At present, everything is progressing smoothly. We expect that next year will be the first year when Android phones begin to import Chinese NFC chips, and the company is expected to benefit.
On July 14, 2021, the company’s convertible corporate bonds were listed and traded in Shenzhen Stock Exchange, raising a total of 1.5 billion yuan to deepen the layout of high-end safety chips and vehicle regulations, of which 450 million yuan was used for on-board VCU R & D and industrialization projects, and the products were mainly used for vehicle control decisions, including power and chassis. At present, the company’s R & D is progressing smoothly and the team size continues to expand. R & D teams have been established in Chengdu and Beijing, with a team size of nearly 100 people.
Investment advice
Based on the continued prosperity of the special integrated circuit industry and the security chip industry, we maintain the company’s profit forecast. It is estimated that the company’s revenue from 2021 to 2023 will be 5.908 billion yuan, 9.433 billion yuan and 15.181 billion yuan respectively; The net profits attributable to the shareholders of the parent company were RMB 1.743 billion, RMB 3.170 billion and RMB 5.464 billion respectively; EPS is 2.87 yuan / share, 5.22 yuan / share and 9 yuan / share respectively, corresponding to the closing price of 202.48 yuan on December 27, 2021, and PE is 70X, 39x and 22x respectively. Maintain the “buy” rating.
Risk statement
The budget expenditure of special industries is lower than the expected risk. At present, most of the company’s net profit comes from special integrated circuit business, which is related to its industry budget expenditure. In the future, if the industry budget expenditure is less than expected, the company’s performance will face the risk of being greatly affected; Gross margin fluctuation risk. The competition of special integrated circuits is fierce, and suppliers may be introduced into the industry in the future. In the future, if the industry competition of special integrated circuit business intensifies or the company is unable to complete the product upgrading through continuous research and development, resulting in the fluctuation of the company’s product gross profit margin, it will have a great impact on the company’s performance; Chip capacity supply is limited. The capricious epidemic situation leads to the limited capacity of the chip foundry, and the company may not be able to obtain sufficient capacity, resulting in the failure to smoothly provide chips to customers, affecting the company’s revenue; The downstream demand of intelligent security chip is lower than expected; FPGA civilian market expansion was less than expected.
