\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Good investment orientation and basic value. According to the company’s business briefing in 2021, the company achieved an operating revenue of about 24 billion yuan in 2021, an increase of about 21% over 2020, of which the semiconductor design business achieved an operating revenue of about 20.5 billion yuan, an increase of about 18% over 2020. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be 4.468 billion yuan to 4.868 billion yuan, with a year-on-year increase of 65.13% to 79.91%. The main reason why the growth rate of net profit is higher than that of operating revenue is that the proportion of vehicle and security CIS revenue with high gross profit margin of the company has increased, which has driven the overall gross profit margin to increase, and the excellent operation and management ability of the company has gradually decreased the expense rate after M & A. From the performance of PE and Pb in the past two years, the company’s PE quantile is 1.45%, and the Pb quantile is 1.45%. Both PE and Pb are at historical lows. The average price of the company in the past two years is 244.82 yuan. At present, the share price is lower than the average price, and the investment value appears.
On board CIS will bring new revenue and profit growth points to the company. The company has invested in research and development in the field of vehicle for more than 16 years, with complete product coverage, and prospectively laid out 8 million pixel vehicle CIS. The company’s on-board CIS customers include Mercedes Benz, BMW, Volkswagen, Tesla, great wall, Byd Company Limited(002594) , Chang’an, Toyota, Honda, Geely, etc. In the past two years, based on the cooperation of the original European and American mainstream automobile brands, the company has introduced a large number of solutions to Chinese traditional automobile brands and new forces in automobile manufacturing. In the first quarter of 2021, the year-on-year growth rate of China’s passenger car shipments of built-in, look around, front view and rear view cameras was 554.5%, 120.8%, 103%, 102% and 60.6% respectively. Benefiting from the active use of cameras by Chinese car companies, the company expects that the on-board CIS will achieve an operating revenue of about 2.3 billion yuan in 2021, an increase of about 85% over 2020.
Mobile CIS enters high-end brands. The company’s CIS products involve many leading mobile phone brands in China, and gradually penetrate high-end phones. It is optimistic that the company will expand the price range of CIS in mobile terminals and increase the application proportion of CIS in high-end mobile phones.
Profit forecast: from 2021 to 2023, the company is expected to realize operating revenue of 24160 / 31475 / 39.919 billion yuan respectively, with a year-on-year increase of 21.87% / 30.27% / 26.83%, net profit attributable to parent company of 4670 / 6169 / 7856 million yuan respectively, with a year-on-year increase of 72.56% / 32.12% / 27.34%, and PE corresponding to current stock price (March 17, 2022) is 42.03/31.81/24.98. Maintain the “buy” rating.
Risk warning: the risk of repeated epidemic, the risk of product import falling short of expectations, the risk of downstream demand falling short of expectations, the risk of intensified market competition and the risk of goodwill impairment
