\u3000\u3 Guocheng Mining Co.Ltd(000688) 536 3Peak Incorporated(688536) )
4q21 revenue hit a quarterly high, and the net profit attributable to the parent company increased by 141% in 2021. The company’s annual revenue in 2021 was 1.326 billion yuan (yoy134%), the net profit attributable to the parent was 444 million yuan (yoy141%), and the net profit not attributable to the parent was 369 million yuan (yoy120%). Among them, the revenue of 4q21 was 435 million yuan (yoy290%, QoQ 7.06%), a quarterly high, and the net profit attributable to the parent company was 132 million yuan (yoy528%, qoq-16.01%). In terms of profitability, the gross profit margin of the company’s signal chain products increased by 0.98 PCT to 63.48%, and the gross profit margin of power management products increased by 21.13 PCT to 50.37%. Due to the increase in the proportion of revenue of power management products, the overall gross profit margin of the company decreased by 0.70 PCT to 60.53%; The net interest rate increased by 1.01pct to 33.45%. In 2021, the company increased R & D investment to 301 million yuan (yoy146%), and the R & D rate increased by 1.07pct to 22.70%.
The income structure is becoming more and more balanced, and the product application field is expanding. In terms of products, 2021 signal chain products continued to maintain steady growth, realizing revenue of 1.028 billion yuan (yoy88.63%), accounting for 77.51% from 96.17%; The revenue of power management products reached 298 million yuan (yoy1276%), accounting for 22.49% from 3.83%, mainly due to the gradual mass production of linear power supply, power monitoring, motor drive and other products under the power management product line at the client, and the gradual balance of the company’s revenue structure. From the perspective of downstream application fields, the company has achieved fruitful results in market expansion in many application fields such as communication, pan industry and green energy. It has reached cooperation with many high-quality customers at home and abroad such as Samsung, Zhongwei electronics, maytronics, Qun optoelectronics, Mingwei and Feihong, and the application fields of products have been continuously expanded.
Establish the embedded processor division and increase the investment in the embedded processor division. In 2021, the company’s R & D technicians increased from 141 to 275, and launched more than 400 new products, with a total of more than 1600 product models. In terms of technology, we have increased the input of vehicle regulation and isolation platform technology, established a complete automotive electronic quality management system and passed the approval of relevant customers, and the first automotive high-voltage precision amplifier (tpa1882q) has been supplied in batch; The first multi-channel digital isolator has been mass produced. Many key indicators including isolation voltage and electrostatic protection have reached the leading level in China, and CMTI indicators have reached the international leading level. At the same time, the company has established an embedded processor division to carry out the R & D and application team construction of embedded processor related products, in order to provide customers with all-round chip solutions.
Investment suggestion: the company’s product models and downstream application fields are constantly enriched and the “buy” rating is maintained. We expect the company’s net profit attributable to the parent company to be RMB 556 / 745 / 1031 million from 2022 to 2024 (the value before 20222023 is RMB 601 / 739 million), with a year-on-year growth rate of 26 / 34 / 38%; EPS is 6.93/9.29/12.85 yuan, and the PE corresponding to the share price on March 11, 2022 is 95 / 71 / 51x respectively. The company’s product models and downstream application fields are constantly enriched, which is expected to continue to benefit from the domestic substitution of chips and maintain the “buy” rating.
Risk warning: the research and development of new products is not as expected; Customer verification is not as expected; The demand is less than expected.
