\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Event: on March 9, 2022, Will Semiconductor Co.Ltd.Shanghai(603501) released a briefing on the operation of 2021. In 2021, the company achieved a revenue of about 24 billion yuan (YoY + 21%), of which the semiconductor design business revenue was about 20.5 billion yuan (YoY + 18%), and realized a net profit attributable to the parent company of 4.47-4.87 billion yuan (median yoy + 72.5%); Corresponding to Q4, the single quarter revenue is about 5.7 billion yuan (yoy-2.9%, qoq-3.1%), and the net profit attributable to the parent company is 950-1.35 billion yuan (median yoy + 17.4%, qoq-9.8%). In 2021, the company’s business segments have increased significantly, and a semiconductor design business layout has been formed with the coordinated development of image sensor, touch and display, simulation and other three solution businesses.
Automotive semiconductor star sea, automotive CIS business is growing rapidly. We released Will Semiconductor Co.Ltd.Shanghai(603501) automotive semiconductor in-depth special report at the end of January, analyzing the layout and growth path of Weill’s automotive semiconductor business with automotive CIS as the core from three levels. In 2021, benefiting from the global wave of electric and intelligent vehicles, the number of on-board CIS pixels and single vehicle cameras increased significantly. As the world’s core on-board CIS supplier, weir has launched multiple models of products from VGA to 8m that can meet different application scenarios inside and outside the cabin. In 2021, the company’s on-board CIS realized a revenue of about 2.3 billion yuan, a year-on-year increase of about 85%; In 2022, with the continuous improvement of the company’s market share of on-board CIS and the large volume of automotive semiconductors other than CIS, the company’s automotive semiconductor business is expected to continue to maintain rapid growth and further increase its proportion in the company’s overall revenue.
The security CIS business greatly exceeded expectations, and the proportion of mobile CIS high-end products increased steadily. In addition to automotive CIS, the company also achieved rapid growth in cis revenue in the field of security. In 2021, the company’s security CIS revenue increased by about 70% year-on-year, mainly due to the company’s continuous efforts in medium and high-end security products, the continuous improvement of market share, and the simultaneous improvement of revenue scale and profitability. In the field of mobile phone CIS, while maintaining a stable revenue scale, the company has steadily increased the proportion of high-order pixel CIS revenue, and successfully launched 200 million pixels / 0.61 μ M pixel size products continue to lead the market. In addition, in 2021, the company’s CIS business revenue also increased significantly in the leading areas of laptop, medical treatment and AR / VR.
Tddi business continues to make breakthroughs and create new profit growth points. In 2021, the company’s tddi business still achieved rapid growth in the whole year under the condition of limited capacity in the first half of the year. In 2021, the revenue exceeded 1.8 billion yuan, with a year-on-year increase of about 160%. At the same time, due to the tight supply and demand of tddi products, the gross profit margin of tddi business of the company was at a high level in 2021 (the net profit margin of 21h1 reached 48%), which brought a large profit contribution to the company. Looking forward to 2022, the company’s TTdi products will be mass produced in many first-line mobile phone brand customers, and oledddic products will be launched recently to further improve the product matrix. At the same time, the production capacity guarantee will be more sufficient. It is expected to maintain high growth and high profitability in 2022.
Investment suggestion: it is estimated that the net profit attributable to the parent company in 21 / 22 / 23 will be 4.68/5.748/7.269 billion yuan respectively, EPS will be 5.34/6.56/8.30 yuan respectively, and the corresponding PE will be 42 / 34 / 27 times respectively. We are optimistic about the development path of the company’s platform semiconductor and the in-depth layout in the automotive semiconductor field, and maintain the “recommended” rating.
Risk warning: the company’s new product research and development is less than the expected risk; Downstream industry boom decline risk; Market competition intensifies risks.
