\u3000\u3 Guocheng Mining Co.Ltd(000688) 508 Wuxi Chipown Micro-Electronics Limited(688508) )
Event: the company released its annual report for 2021 and achieved a revenue of 753 million yuan, a year-on-year increase of 75.44%; The net profit attributable to the parent company was 201 million yuan, a year-on-year increase of 101.81%; The net profit deducted from non parent company was 152 million yuan, with a year-on-year increase of 88.42%.
With the superposition of capacity guarantee and optimization of product structure, the revenue and gross profit level increased significantly: according to the announcement, the company achieved a revenue of 753 million yuan, a year-on-year increase of 75.44%; The net profit attributable to the parent company was 201 million yuan, a year-on-year increase of 101.81%; The net profit deducted from non parent company was 152 million yuan, with a year-on-year increase of 88.42%. Among them, home appliance chips achieved a revenue of 346 million yuan, a year-on-year increase of 89.47% and a gross profit margin of 46%; Standard power chips achieved a revenue of 259 million yuan, a year-on-year increase of 54.88% and a gross profit margin of 34.2%; Industrial control power chips achieved a revenue of 118 million yuan, a year-on-year increase of 122.83% and a gross profit margin of 55%. The company’s main growth logic: first, actively respond to capacity shortage and ensure capacity; Second, develop new customers and new markets; Third, the company continued to launch new products and optimize the product structure. The overall gross profit margin of the company increased from 37.7% (2020) to 43% (2021).
The layout of new energy vehicles and industrial chips in the fixed growth project is expected to open a new growth track: on the evening of March 17, the company announced that it plans to raise no more than 1.099 billion yuan, which is mainly used for the layout of high-voltage power supply and electric drive power chip of new energy vehicles, industrial digital power management chip and supporting power chip and the construction of Suzhou R & D center project, focusing on the development of integrated 32-bit digital core, multi-phase parallel control Multiphase parallel buck power supply main control chip, integrated bridge drive chip and intelligent sampling high-frequency switch module, Gan module and intelligent Gan device. Since its establishment, the company has always focused on the field of power chips. This time, for high-power industrial scenes such as data center, server, base station, photovoltaic inverter and energy storage, the company continues to improve the performance indicators of digital power management chips and expand product categories, which is expected to open a new growth race.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 1.137 billion yuan, 1.592 billion yuan and 2.213 billion yuan respectively, and the net profit attributable to the parent company will be 251 million yuan, 356 million yuan and 498 million yuan respectively. It will be covered for the first time and given a “Buy-A” investment rating.
Risk tips: the risk of technology upgrading iteration, the risk of new product R & D failure, and the risk that the progress of raised investment projects is less than expected.
