Leaguer (Shenzhen) Microelectronics Corp(688589) company’s brief evaluation report: the performance meets expectations and is optimistic about the release of performance in power grid, transportation, photovoltaic and other fields

\u3000\u3 Guocheng Mining Co.Ltd(000688) 589 Leaguer (Shenzhen) Microelectronics Corp(688589) )

Core view

The company issued the annual report of 2021. In 2021, the company realized revenue of 360 million yuan (+ 66.99%), net profit attributable to parent company of 42 million yuan (+ 51.5%), and net profit deducted from non attributable to parent company of 29 million yuan (+ 40.49%). The basic EPS is 0.42 yuan and the weighted average roe is 5.74%.

Smart grid business rose significantly, and technology accumulation released performance potential. In 2021, the company’s smart grid business achieved an operating revenue of 307 million yuan, a year-on-year increase of 53.74%. As one of the important suppliers of the State Grid, the company has participated in the formulation and drafting of a number of national standards, providing technical support for the application of power line technology in smart grid. At present, the three-phase meter module and type I collector module owned by the company have been submitted for inspection by China Southern Power Grid. In the future, the company is expected to realize the continuous growth of business in the field of power grid by virtue of its leading technical advantages.

The business performance of non grid Internet of things is eye-catching, and the scene expansion opens a new growth point. In 2021, the company’s non power Internet of things business realized an operating revenue of 52 million yuan, a year-on-year increase of 246.42%. In the field of non electric Internet of things, the company has layout in three scenarios: high-speed rail comprehensive energy efficiency management, smart home appliances and smart street lamps, and the shipment volume has increased rapidly. In the future, with the continuous expansion of application scenarios, the company’s advantages in power line communication technology will gradually highlight.

Orders on hand have increased significantly, stabilizing production capacity and helping to seize market opportunities. The company’s streaming is mainly in Semiconductor Manufacturing International Corporation(688981) . Based on the good cooperative relationship between the two sides, the current chip shortage crisis has not affected the enterprise’s supply chain. At present, the company’s orders on hand exceed 170 million yuan, with a year-on-year increase of more than 130%. With the expansion of the company’s product application scenarios and the continuation of the wave of domestic substitution, the company’s performance is expected to achieve sustained and rapid growth in the future.

Profit forecast: from 2022 to 2024, we expect the company’s revenue to be RMB 535 / 763 / 1066 million (+ 48.7% / 42.4% / 39.8%) respectively; The net profit attributable to the parent company was 93 / 131 / 174 million yuan (+ 122.0% / 40.2% / 33.3%). The latest closing price corresponding to PE is 50 / 36 / 27 times respectively. The company is deeply engaged in the field of PLC. Under the background of Internet of all things, the performance is expected to achieve sustained and rapid growth and maintain the “buy” rating.

Risk warning: the customer import is not as expected; The research and development of new products is not as expected.

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