\u3000\u3 Guocheng Mining Co.Ltd(000688) 508 Wuxi Chipown Micro-Electronics Limited(688508) )
Recently, the company released its annual report for 2021: in 2021, 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%. According to the fixed increase announcement, it is planned to issue no more than 3392955 shares and raise no more than 1.099 billion yuan. It is mainly used for the R & D and industrialization project of high-voltage power supply and electric drive power chip of new energy vehicles, the R & D and industrialization project of industrial digital power management chip and supporting power chip, and the project of Suzhou R & D center.
Key points supporting rating
Profitability improved and R & D investment increased. The growth of the company’s gross profit, revenue and net profit during the reporting period is due to the improvement of the company’s gross profit and net profit. In terms of gross profit margin, the comprehensive gross profit margin in 2021 was 43.00%, an increase of 5.30 percentage points over the previous year. In terms of expense rate, the sales expense rate was 1.38%, with a year-on-year increase of 0.26 percentage points, the management expense rate was 3.51%, with a year-on-year increase of 0.12 percentage points, and the financial expense rate was – 0.96%, with a year-on-year increase of 0.74 percentage points. The annual R & D expenditure was 132 million yuan, with a year-on-year increase of 124.80%, and the revenue accounted for 17.49%, with a year-on-year increase of 3.84 percentage points.
The three business areas have achieved good growth, and the product structure has been continuously optimized. In the home appliance market, the annual revenue was 356 million yuan, with a year-on-year increase of 89.47%, and the gross profit margin was 46.01%, with a year-on-year increase of 1.32 percentage points. The market share of small home appliances continued to increase, and the power company broke through the benchmark customers in an all-round way; The annual revenue of standard power was 259 million yuan, with a year-on-year increase of 54.88%, and the gross profit margin was 34.20%, with a year-on-year increase of 5.51 percentage points. Fast charging and mobile phone brand customers gradually increased; In the industrial control market, the benchmark customers’ products in the three sectors of motor, power and communication increased rapidly. The annual revenue was 118 million yuan, with a year-on-year increase of 122.83%, and the gross profit margin reached 55.01%, with a year-on-year increase of 11.54 percentage points. In terms of income structure, the proportion of industrial control chips with high gross profit margin further increased to 15.63%.
We will increase the number of automotive and industrial chips and expand high-end new markets. The company plans to raise no more than 1.099 billion yuan, which is mainly used for high-voltage power supply and electric drive power chip of new energy vehicles, industrial digital power management chip projects, etc. Among them, the new energy vehicle high voltage power supply and electric drive power chip project products are mainly used for new energy vehicle OBC, PDU and electric drive system. Industrial digital power management chip projects are mainly oriented to high-power industrial scenes such as data center, base station, photovoltaic inverter and energy storage. The developed products include high-power digital power control chip.
Valuation
Considering the good downstream demand, adjust the company’s EPS from 2022 to 2024 to 2.315/3.211/4.307 yuan, and the PE corresponding to the current share price is 44 / 32 / 24 times respectively, maintaining the overweight rating.
Main risks of rating
Customer promotion progress is lower than expected; The progress of domestic substitution is less than expected; The reserve of technical talents is less than expected.
