\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 27 Sino Wealth Electronic Ltd(300327) )
The company has a good performance in 2021: according to the performance express, the company achieved an operating revenue of 149391 million yuan in 2021, an increase of 47.58% over the same period of last year; The net profit attributable to the shareholders of the listed company was 370.65 million yuan, an increase of 77.00% over the same period last year; After deducting non recurring profits and losses, the net profit attributable to shareholders of listed companies was 361.08 million yuan, an increase of 88.39% over the same period of last year.
Continuous optimization of revenue structure: under the background of overall capacity shortage in the whole market and short supply of products in 2021, the company actively adjusted the revenue structure, and the sales of OLED display driver chips and lithium battery management chips showed multiple growth year-on-year. According to our calculation, the revenue of lithium battery management chips will account for 30% and that of OLED display driver chips will account for 15% in 2021.
MCU business: the company’s MCU business scale is leading in China. The household appliances and kitchen appliances business operates healthily, and the products are in short supply. In the case of global shortage, Chinese white power manufacturers actively introduce domestic MCU, the company’s white power business continues to break through, the market share is expected to continue to increase, and gradually enter the high-end market.
Lithium battery management business: the company has continued to invest in the lithium battery management market. It has entered many large brand manufacturers in China in mobile phones and TWS headphones, and has been mass produced on a large scale. In the application of notebook computers, it has also been recognized and adopted by large brand manufacturers. At present, American and Japanese suppliers in this field are in a relatively monopoly position. However, with the accumulation and development of the company’s technology for many years and the mass production and introduction of products in brand customers, the company has been in a rapid growth period of domestic substitution and market share expansion.
OLED display driver business: the company cultivates an internal team, completely self-developed the IP required by AMOLED display driver chip, and mastered the core technology. At present, the market is dominated by Korean and Taiwanese manufacturers. Although the company’s OLED driver chip business is growing rapidly, it still needs long-term cultivation on the brand customer side. With the increasing penetration of AMOLED screen mobile phones, the domestic AMOLED display driver market is expected to enter a high-speed growth period.
Profit forecast, valuation and rating: according to the company’s performance express, we lowered the company’s revenue forecast for 2021 to 1.494 billion yuan (- 3%), and the parent company’s net profit forecast to 371 million yuan (- 1%), and maintained the performance forecast for 20222023 in combination with the prosperity of the industry. We expect the operating revenue of the company from 2021 to 2023 to be RMB 1494 million, RMB 2103 million and RMB 2829 million respectively, with a year-on-year growth rate of 47.58%, 40.76% and 34.51% respectively; It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 371 million, RMB 516 million and RMB 653 million respectively, with a year-on-year growth rate of 77.17%, 39.17% and 26.40% respectively, and the corresponding EPS will be RMB 1.19, 1.66 and 2.10 respectively. PE corresponding to the current share price is 44x, 32x and 25X respectively, maintaining the “buy” rating.
Risk tip: MCU demand is less than expected, lithium battery management chip volume is less than expected, AMOLED display driver chip brand customer expansion is less than expected.
