\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
On March 21, Gigadevice Semiconductor (Beijing) Inc(603986) announced that the concerted action of Mr. Zhu Yiming, the major shareholder, terminated the reduction plan ahead of schedule. Earlier, Mr. Zhu Yiming also announced the early termination of the reduction plan and promised not to reduce his holdings in the next 12 months, highlighting the confidence of major shareholders and people acting in concert in the long-term development of the company. The early market concerns have been eliminated, and we are optimistic about the growth of the company for a long time. As of March 21, the persons acting in concert held a total of 10.6% of the shares of the company.
Flash: continuous optimization of product structure and continuous expansion of automotive industrial control customers.
(1) the company continues to optimize the product and customer structure, and the revenue contribution of industry and other fields is increasing. The 2m ~ 2GB vehicle specification norflash is fully paved, which is mainly used in ADAS, cockpit entertainment, BMS, etc.
(2) we believe that although the price of consumer grade norflash has been reduced previously, due to the continuous strong demand in industry, communication, automobile and other fields, there is still room for further price increase of medium and large capacity norflash, and the company is expected to benefit deeply.
(3) in addition, the company’s 38nmspinandflash has completed aec-q100 vehicle specification certification, covering 1GB ~ 4GB capacity, boosting the company to fully enter the field of automobile application.
MCU: the channel price rebounded and grasped the opportunity of breaking the situation in the automotive industrial control market.
(1) recently, the channel prices of some medium and high-end MCU models of the company began to rebound. In addition to the influence of channel inventory factors, the demand for medium and high-end MCU in overseas and industrial control fields is still improving.
(2) over the past 21 years, the demand of various MCU market segments such as industry, automobile, household appliances and consumption has remained strong. At present, the proportion of the company’s revenue in the industrial field has been in line with that in the consumer field, and the product structure has been continuously optimized.
(3) the company’s latest vehicle specification MCU product is expected to be mass produced around the middle of 2022, mainly for entertainment system. In the future, different types of MCU will be developed for body, cockpit, power system and other fields, so as to stabilize the leading position of MCU in China.
DRAM: self-developed products accelerate large-scale production and build an aircraft carrier storage enterprise.
(1) the company’s self-developed 19nm4gbddr4 product has been mass produced in June 21. The self-developed product has realized the comprehensive localization from design, streaming, sealing, testing and verification, and has been applied to set-top box, TV, monitoring and other markets.
(2) the company’s current planned products include DDR3 / DDR4 / lpddr4, with a capacity of 1 ~ 8GB. The company expects 17nmddr3 products to contribute revenue this year. In addition, the company also plans vehicle specification DRAM chips, which are expected to continue to expand the automotive field.
(3) in 2022, the company will continue to launch DRAM self-developed new products. It is estimated that the purchase and OEM amount of self-developed DDR3 and DDR4 from Changxin storage is 860 million yuan, and we expect to contribute about 1.65 billion yuan of revenue.
Investment suggestion: we expect that the net profit attributable to the parent company in 21 / 22 / 23 is expected to reach 2.34/31.0/3.9 billion yuan, and the corresponding current price PE is 45 / 34 / 27 times respectively. As a global storage leader, the company continues to expand the application in the field of automotive industrial control, has significant long-term growth, and maintains the “recommended” rating.
Risk warning: downstream demand is less than expected; Upstream capacity supply is limited; Market competition intensifies.
