\u3000\u3 Guocheng Mining Co.Ltd(000688) 385 Shanghai Fudan Microelectronics Group Co.Ltd(688385) )
Events
The company released its annual report for 2021. In 2021, the company achieved a revenue of 2.577 billion yuan, a year-on-year increase of 52.42%; The net profit attributable to the shareholders of the listed company was 514 million yuan, a year-on-year increase of 287.2%.
Optimize the structure of products and customers, and achieve growth in all product lines
In 2021, there was a strong demand in the downstream application market of semiconductors. The company optimized the product and customer structure, and achieved growth in the four main business segments: security and identification chip, nonvolatile memory, smart meter chip, FPGA and other chips. According to the data of the annual report, the revenue was 866 million yuan, 721 million yuan, 296 million yuan and 427 million yuan respectively, with a year-on-year increase of 42.19%, 41.56%, 64.18% and 109.49%; In terms of sales volume, the sales volume of each sector in 2021 was 1.52 billion, 1.09 billion, 71.9 million and 633351 million respectively, with a year-on-year increase of 11.27%, – 3.21%, – 6.51% and – 0.50%. Benefiting from the introduction of new products and the increase of unit prices of some products, under the rise of the company’s overall OEM cost, the comprehensive gross profit margin increased by 12.95 percentage points compared with 2020. Among them, the increase of smart meter chip business and security and identification chip business was more obvious, and the gross profit margin increased by 22.79 percentage points and 17.05 percentage points respectively.
Strengthen R & D investment and make breakthroughs in vehicle regulation products
The company has maintained a high R & D investment for a long time. In 2021, the R & D investment of the company was about 749 million yuan, accounting for 29.06% of the operating revenue, with a year-on-year increase of 41.46%, especially strengthening the product development of advanced processes. By the end of 2021, the company had 830 R & D personnel, accounting for 54.21% of the total number of the company. From the perspective of academic structure, the number of doctoral students, master’s students and undergraduate students of the company was 16, 460 and 316 respectively. The company attached great importance to the cultivation and construction of talent echelon. In 2021, the company launched the second type of restricted stock incentive plan of science and innovation board to continuously stimulate the innovation and research enthusiasm of R & D personnel. The company is actively developing a new generation of 1 billion gate level products based on 14 / 16nm process, and further enriching the types of FPGA and PSoC chips based on 28nm process, so as to expand new markets and maintain the company’s leading position in domestic FPGA technology. At the same time, the company’s multi product lines have made progress in the field of vehicle regulations. In 2021, the company released LG series MCU, which has successfully obtained aec-q100 certification. The target application fields include vehicle wiper, window, seat, door lock, air conditioner, electronic shifter, etc; Nonvolatile memory product line has also successfully entered mass production in the field of automotive electronics; The fm1280 chip of smart card and security chip and the FM17 series read-write chip of smart device chip have successfully obtained aecq100 certification, making a breakthrough in the fields of vehicle Tbox security chip and digital key.
Investment advice
Based on the smooth expansion of the company’s new products and downstream applications, we adjusted our previous profit forecast and estimated that the company’s revenue from 2022 to 2024 will be 3.35 billion yuan, 4.1 billion yuan and 5 billion yuan respectively (of which the revenue in 2022 and 2023 will be adjusted from the previous 2.958 billion yuan and 3.889 billion yuan to 3.35 billion yuan and 4.1 billion yuan); The net profits attributable to the shareholders of the parent company were RMB 656 million, RMB 922 million and RMB 1183 million respectively (of which, the net profits in 2022 and 2023 were adjusted to RMB 656 million and RMB 922 million from the previous RMB 441 million and RMB 601 million); EPS is 0.81 yuan / share, 1.13 yuan / share and 1.45 yuan / share respectively, and PE corresponding to the closing price of 45.02 yuan on March 18, 2022 is 55.90 times, 39.85 times and 31.03 times respectively. Based on the recent relatively large fluctuations in the overall semiconductor sector, we maintain the previous “overweight” rating.
Risk tips
The risk of gross profit margin decline due to intensified industry competition; The industrialization of R & D achievements is less than expected; Inventory falling price risk; Sino US trade friction risk, etc
