\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Conclusions and suggestions:
In 2021, the company’s vehicle CIS, security CIS and tddi business revenue increased by 85%, 70% and 160% respectively, showing strong growth momentum. At the same time, we expect that vehicle CIS and tddi products are expected to continue to maintain a high-speed growth trend in 2022, so as to promote the growth of performance. It is estimated that the net profit in 2022 and 2023 will be 5.7 billion yuan and 7.2 billion yuan respectively, with yoy increasing by 24% and 26%, corresponding to EPS of 6.51 yuan and 8.17 yuan respectively, corresponding to the current PE valuation of 35 times and 28 times respectively. The valuation is at a low point and maintains the “buy” rating.
The company’s net profit increased significantly in 2021: the company issued a briefing on its operation in 2021. In 2021, the company achieved an operating revenue of about 24 billion yuan, about 21% year-on-year. The net profit was 4.47 billion yuan to 4.97 billion yuan, an increase of 65.1% to 80% year-on-year. The overall business of the company is in line with expectations. Quarterly, 4q21 achieved a revenue of 5.7 billion yuan, a year-on-year decrease of 3% and a month on month decrease of 3%; The net profit was 950 million yuan – 1.35 billion yuan, a year-on-year decrease of 3% – an increase of 37%, and a month-on-month decrease of 25% – an increase of 5%. By business, the company’s semiconductor design business achieved an operating revenue of about 20.5 billion yuan, a year-on-year increase of about 18%, of which the company’s on-board CIS achieved an operating revenue of about 2.3 billion yuan, an increase of about 85% over 2020. In the field of security, the company continued to make efforts in medium and high-end security products. The operating revenue of security CIS products increased by about 70%, and the revenue of tddi products exceeded 1.8 billion yuan, a year-on-year increase of about 160%.
The penetration rate of on-board CIS continues to improve: according to the data of the Ministry of industry and information technology, the penetration rate of new cars with intelligent driving level above L2 in China has reached 20%. With the promotion of the process of new car intellectualization, there is room for a significant improvement in the number and performance of single car CIS. It is estimated that the global market demand for on-board image sensors will be about 220 million in 2022, with a year-on-year increase of nearly 50%, At the same time, with the further maturity of automatic driving, it is expected to reach 550 million in 2025. As the world’s second-largest vehicle CIS manufacturer, the company will directly benefit from the improvement of the needs of the industry.
Profit forecast: it is estimated that the net profit attributable to the parent company from 2022 to 2023 will be 5.7 billion yuan and 7.2 billion yuan respectively. Yoy will increase by 24% and 26%, corresponding to EPS of 6.51 yuan and 8.17 yuan respectively, corresponding to current PE valuation of 35 times and 28 times respectively. The valuation is at a low point and maintains the “buy” rating.
Risk tip: the evolution of mobile phone optics is not as expected, and covid-19 epidemic has dragged down the release of industry demand
