\u3000\u3 Guocheng Mining Co.Ltd(000688) 508 Wuxi Chipown Micro-Electronics Limited(688508) )
Key investment points
Performance summary: in 2021, the company achieved an operating revenue of 750 million yuan, a year-on-year increase of 75.4%; The net profit attributable to the owners of the parent company was 200 million yuan, a year-on-year increase of 101.8%; The net cash flow from operating activities increased by 220 million yuan over the end of the previous year, with a year-on-year increase of 601.4%.
The performance of the three major businesses increased, and the structure was optimized to improve profitability. 2021:1) revenue side: the company's revenue from home appliances / standard power supply / industrial control power / other chips was 3.5/2.6/1.2/0.3 billion yuan respectively, with a year-on-year increase (decrease) of 89.5% / 54.9% / 122.8% / (5.6%) respectively. 2) Profit side: the overall gross profit margin / net profit margin of the company are 43.1% / 26.7% respectively, of which the gross profit margin of household appliances / standard power supply / industrial control power / other businesses are 46.0% / 34.2% / 55.0% / 39.9% respectively. 3) Expense side: the company's sales / management / R & D expense ratio was 1.4% / 3.5% / 17.5% respectively, with a year-on-year increase of 0.2pp/0.1pp/3.8pp. The company's outstanding performance is mainly due to the company's active solution to capacity shortage, continuous development of new customers, vigorous introduction of new products and active adjustment of product structure.
Under the advantage of high market share of AC-DC, it is still continuing R & D + business expansion and deepening the layout. At present, the company has achieved the first market share of domestic power management IC for home appliances, set-top boxes and fast charging secondary chips. Its core competitiveness is to have high-voltage technology with high barriers among Chinese manufacturers, high market share in home appliances and standard power AC-DC and stable downstream customers. At present, the company aims to increase the market share. While maintaining the leading position of AC-DC, the horizontally arranged DC-DC, drive and other product lines can effectively produce synergy with it.
White electricity replacement and fast charging technology upgrading determine the recent performance increment, and increase the industrial control and vehicle layout of fixed increase projects. With the rapid growth of the small household appliance market and the increase of the market share of white power and fast charging power management IC with high ASP and gross profit margin, the company will usher in the simultaneous rise of the volume, price and gross profit margin of household appliances and standard power products. According to the fixed increase plan issued by the company on March 18, the company plans to raise about 1.1 billion yuan to invest in the R & D and industrialization of high-voltage power supply and electric drive power chip of new energy vehicles. The products will be mainly used for OBC (on-board charger), PDU (high-voltage distribution unit) and electric drive system of new energy vehicles. In the future, with the implementation of fixed value-added projects, the company's share in industrial control and vehicle is expected to increase significantly year by year, and the company is expected to quickly usher in the second growth curve.
Profit forecast and investment suggestions: it is estimated that the company's EPS will be 2.39/3.35/4.47 yuan respectively from 2022 to 24, and the compound growth rate of net profit attributable to the parent company in the next three years is expected to reach more than 35%. Considering the company's core position in fast charging and home appliance AC-DC and its still increasing R & D and horizontal expansion of product line under the condition of large market share, we give the company 70 times PE in 2022, corresponding to the target price of 167.30 yuan, which is covered for the first time, Give a "buy" rating.
Risk warning: the company's technology research and development progress does not meet the expected risk; Quick charging customer expansion is less than expected risk; Overseas competitors increase the risk of investment in the Chinese market; The household appliance industry is exposed to the risk of trade friction
