\u3000\u3 Guocheng Mining Co.Ltd(000688) 508 Wuxi Chipown Micro-Electronics Limited(688508) )
Core view
4q21 revenue and profit reached a quarterly high, and the net profit attributable to the parent company increased by 102% in 2021. The company’s annual revenue in 2021 was 753 million yuan (yoy75%), the net profit attributable to the parent company was 201 million yuan (yoy102%), and the net profit not attributable to the parent company was 152 million yuan (yoy88%). Among them, the revenue of 4q21 was 218 million yuan (yoy45%, qoq4%), and the net profit attributable to the parent company was 72 million yuan (yoy79%, qoq23%), both of which reached a quarterly high. In terms of profitability, the gross profit margin of the company’s home appliance chips increased by 1.32 PCT to 46.01%, the gross profit margin of standard power chips increased by 5.51 PCT to 34.20%, the gross profit margin of industrial control power chips increased by 11.54 PCT to 55.01%, and the overall gross profit margin increased by 5.30 PCT to 43.00%; The net interest rate increased by 3.47pct to 26.71%. In 2021, the company increased R & D investment, and the R & D rate increased from 13.65% to 17.49%.
Actively expand new products and new customers, and achieve high growth in the three major businesses. In 2021, the company continued to explore new customers and markets, vigorously launched new products, and achieved high growth in the three major businesses. Specifically, the income of home appliance chips was 346 million yuan (yoy89%), accounting for 45.91% from 42.51%. The extension of intelligent application scenarios of small household appliances continued to promote the market share, and the power supply and drive chips broke through the benchmark customers in an all-round way, gradually increasing the volume; The revenue of standard power chips is 259 million yuan (yoy55%), accounting for 34.35% from 38.91%. The power chips of e-commerce customers and mobile phone brand customers in the field of fast charging are gradually increasing; The revenue of industrial control power chips was 118 million yuan (yoy123%), accounting for 15.63% from 12.31%, of which the power supply and drive chip benchmark products of motor, power and communication sectors.
Release the fixed growth plan, focusing on the industrial and automotive fields. The company issued a fixed increase plan and plans to raise 1.099 billion yuan. Among them, 473 million yuan is used for the R & D and industrialization of industrial grade digital power management chips and supporting power chips. It is planned to develop high-power digital power control chips, high-frequency Gan drive chips, intelligent Gan devices and Gan modules for high-power industrial scenes such as data centers, servers, base stations, photovoltaic inverters and energy storage, and build an industrial grade semiconductor test center; 384 million yuan is used for the R & D and industrialization project of high-voltage power supply and electric drive power chip of new energy vehicles. It is planned to develop high-voltage power supply control chip, high-voltage half bridge drive chip, intelligent IGBT, SiC devices, etc. for 400V / 800V batteries, and build vehicle specification semiconductor reliability experiment center and sealed test production line. The products are mainly used for OBC, PDU and electric drive system of new energy vehicles; RMB 242 million is used for the project of Suzhou R & D center.
Investment suggestion: the company will increase its power in the industrial and automotive fields and maintain the “buy” rating
We estimate that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 286 / 387 / 500 million (the value before 20222023 will be RMB 268 / 356 million), with a year-on-year growth rate of 42 / 36 / 29%; EPS is 2.53/3.43/4.42 yuan, and the PE corresponding to the share price on March 17, 2022 is 41 / 30 / 24x respectively. The company established a new growth point for the future and maintained the “buy” rating through fixed growth in the industrial and automotive fields.
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.
