\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
Conclusions and suggestions:
Driven by the market demand of TWS headphones, AMOLED panels and tddi, the demand of norflash industry continued to grow in 2021. The company’s revenue increased by nearly 90% in 2021, and its net profit increased by 169% and 300% after deduction. At the same time, quarterly, revenue and net profit continued to maintain a rapid growth trend, and the net profit margin also remained at a high level of 31.6%.
Looking forward to 2022, the relay of automotive electronics and communication demand is expected to further drive the upward boom of the industry. As China’s leading norflash enterprise, the company has accelerated its expansion to MCU, NAND, DRAM and sensor fields, and its rich product portfolio gives the company more room for growth. It is estimated that the net profit of the company in 2022 and 2023 will be 2.9 billion yuan and 3.8 billion yuan, yoy will increase by 25% and 30% respectively, and EPS will be 4.38 yuan and 5.67 yuan respectively. At present, the share price corresponding to PE in 2022 and 23 will be 36 times and 28 times respectively. As the storage subject of A-share scarcity, the company will give a buy rating.
4q21 net profit increased significantly and the net profit margin remained high: the company released the performance express, thanks to the growth of norflash demand driven by domestic substitution in the semiconductor industry and consumer electronics, and the continuous strong demand in the integrated circuit market. In 2021, the company had full orders, realized a revenue of 8.5 billion yuan, yoy increased by 89%, realized a net profit of 2.52 billion yuan, yoy increased by 169%, and a net profit of 2.24 billion yuan after deduction, Yoy increased by 300%. Quarter by quarter, 4q21 company’s revenue was 2.18 billion yuan, yoy increased by 65%, and achieved a net profit of 690 million yuan, yoy increased by 232%. After deduction, the net profit was 660 million yuan, reversing losses year-on-year, and the net profit margin of the quarter was 31.6%, maintaining a high level.
NOR flash runs at a high level of prosperity, and the overall storage is basically good: thanks to the pull of the market demand of TWS headphones, AMOLED panels and tddi, the demand of NOR flash industry will continue to grow in 2021, while the relay of automotive electronics and communication demand is expected to further drive the prosperity of the industry in 2022. At the same time, based on the judgment that the capital expenditure of the global data center will increase in 2022, especially the expenditure of super large-scale data center will increase by 30%, we expect that the price decline of DRAM is expected to narrow, and niche DRAM products will benefit from the increased demand of domestic import and security industries. The overall storage is basically good, which is conducive to the continuous growth of the company’s DRAM business.
Profit forecast: looking forward to the future, the prosperity of the semiconductor industry in 2022 is expected to continue to operate at a high level. It is expected that the company’s net profit in 2022 and 2023 will be 2.9 billion yuan and 3.8 billion yuan, yoy will increase by 25% and 30% respectively, and EPS will be 4.38 yuan and 5.67 yuan respectively. At present, the stock price corresponding to PE in 2022 and 23 will be 36 times and 28 times respectively. As the storage subject of A-share scarcity, the company will give a buy rating.
Risk tip: covid-19 epidemic has dragged down the growth of IC demand.
