\u3000\u3 Shengda Resources Co.Ltd(000603) 893 Rockchip Electronics Co.Ltd(603893) )
Core view
The company issued the annual report of 2021. In 2021, the company realized revenue of 2.719 billion yuan (+ 45.90%), net profit attributable to parent company of 602 million yuan (+ 88.07%), and net profit deducted from non attributable to parent company of 446 million yuan (+ 63.91%). The basic EPS is 1.45 yuan and the weighted average roe is 24.05%.
The downstream application market is growing rapidly, and the large volume of new products promotes the improvement of performance. In 2021, aiot related demand continued to grow rapidly, including smart home, commercial office equipment, intelligent education electronics and other AI IOT devices. According to IDC’s data and forecast, the global aiot market will reach US $226.4 billion in 2019 and is expected to reach US $482 billion by 2022, with a compound growth rate of 28.65%. The large-scale production of new products such as machine vision chip rv11xx and intelligent application processor rk356x launched by the company covers the application scenarios of aiot based sweeping Siasun Robot&Automation Co.Ltd(300024) , tablet computer and smart home, which promotes the continuous growth of the company’s performance.
The tight supply chain is expected to improve, and the performance growth potential is huge. In 2021, the supply chain of the industry was tight, the production capacity of the company’s main OEM plants failed to meet the demand of substantial growth, and the actual negative growth of production capacity during the reporting period resulted in short supply of some main products and limited performance growth. The mature process in 2022 is expected to be improved with the investment of new capacity in 2022. The growth rate of the company is expected to be higher this year or in the future.
Vigorously build SOC full application scenario coverage and broaden diversified profit space. The company has continuously developed new products to broaden the downstream application scenarios. At present, the company has launched rk3588 and rk3568, which have a good performance in the fields of virtual reality, security monitoring and on-board electronic processor. In the future, with the continuous enrichment of the company’s product line and the outbreak of the overall aiot market, the company is expected to expand new business growth points.
Profit forecast: from 2022 to 2024, we expect the company’s revenue to be RMB 4.299/56.54/7.258 billion (+ 58.1% / 31.5% / 28.4%) respectively; The net profit attributable to the parent company was 945 / 1252 / 1529 million yuan (+ 57.0% / 32.5% / 22.1%). The latest closing price corresponding to PE is 45 / 34 / 28 times respectively. The company is deeply engaged in the field of PLC. Under the background of Internet of all things, its performance is expected to achieve sustained and rapid growth. It is covered for the first time and is rated as “buy”.
Risk warning: the customer import is not as expected; Insufficient capacity supply; The research and development of new products is not as expected.
