\u3000\u3 Shengda Resources Co.Ltd(000603) 893 Rockchip Electronics Co.Ltd(603893) )
Aiot’s rapid penetration and continuous excellent performance
On March 21, 2022, the company released its 2021 annual report. Benefiting from the high prosperity of aiot demand and the structural shortage of supply chain, the company’s operating revenue in 2021 was 2.719 billion yuan, a year-on-year increase of 45.90%, and the net profit attributable to the parent company was 602 million yuan, a year-on-year increase of 88.07%. Considering the overall weak consumer demand in 2022 and the large changes in the fair value profit and loss of the company’s equity in 2021, we lowered the profit forecast. It is estimated that the net profit attributable to the parent company in 20222024 will be 795 / 1084 / 1465 million yuan (the original value in 20222023 will be 901 / 1164 million yuan respectively), EPS will be 1.91/2.60/3.51 yuan, and the corresponding PE of the current stock price is 52.0/38.2/28.2 times. Considering that aiot is still in a period of rapid penetration, maintain the “buy” rating.
The overall economy is expected to be cold in 2022, but the company’s performance may maintain rapid growth
In the annual report, the company has made three prospects for the situation in 2022: (1) for the market scale, the company expects the overall economy to be cold in 2022, but the market scale of aiot is expected to increase by more than 20% year-on-year. (2) For the existing product series, the sales scale of traditional products is expected to maintain an increase of more than 20% every year, and new products such as rv1109 / rv1126 / rk3566 / rk3568 are expected to grow rapidly. (3) For the progress of rk3588, the company is actively promoting rk3588, and the promotion speed is higher than expected.
The progress of the vehicle is advancing rapidly, and the layout of the surrounding chips is becoming more and more perfect
In January 2021, rk3358m completed aec-q100 certification, 2022h1rk3568m will also complete aec-q100 test, and rk3588 will also be applied to the field of intelligent cockpit. While continuously improving the performance of intelligent processors, the company also actively develops chips around processors; In 2021, the company developed a new generation of WiFi chip, fast charging protocol chip, power management chip, multimedia interface, audio codec and other chips, and is expected to enter mass supply in 2022.
Risk warning: there is a risk of continuous tightening of upstream capacity; There is great uncertainty in the speed of customer expansion; There is uncertainty in the research and development progress of new products.
