\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 27 Sino Wealth Electronic Ltd(300327) )
Event: on March 28, the company released its 2021 annual report. The company achieved an operating revenue of 1.494 billion yuan, a year-on-year increase of 47.58%; The net profit attributable to the parent company was 371 million yuan, a year-on-year increase of 77.00%; The net profit deducted from non parent company was 361 million yuan, with a year-on-year increase of 88.39%.
The two major product lines have accumulated a lot, driving the rapid growth of performance. The company's main product lines are industrial control chips (home appliance control, motor control, lithium battery management) and consumer electronics (computer peripherals and Internet of things, AMOLED display driver, PMOLED display driver). According to the company's annual report, the company achieved an operating revenue of 1.494 billion yuan in 2021, a year-on-year increase of + 47.58%; The net profit attributable to the parent company was 371 million yuan, a year-on-year increase of + 77.00%; The net profit deducted from non parent company was 361 million yuan, a year-on-year increase of + 88.39%. The R & D investment reached 264 million yuan, a year-on-year increase of + 53.02%, accounting for 17.70% of the operating revenue. The company's IC products achieved a revenue of 1.493 billion yuan, a year-on-year increase of + 47.48%, a gross profit margin of 47.71%, a sales volume of 713 million pieces, a year-on-year increase of + 12.69%, of which the revenue of industrial control chip products reached 1.166 billion yuan, a year-on-year increase of + 36.65%, accounting for 78.11% of the revenue of IC products and a gross profit margin of 49.88%; Consumer electronic products achieved rapid growth, with a revenue of 327 million yuan, a year-on-year increase of + 105.66% and a gross profit margin of 38.61%. According to the company's annual report, the sales of home appliances and motor control chips accounted for nearly half in 2021, followed by lithium battery management chips and AMOLED display driver chips. The sales of AMOLED display driver chips increased several times year-on-year, and the sales of lithium battery management chips increased year-on-year.
The domestic substitution logic of lithium battery management is clear, and the vehicle regulation MCU and AMOLED driver chip are worth looking forward to. According to the data of businesswire and prospective industry research institute, the global BMS market is expected to be US $6.512 billion in 2021 and US $13.1 billion in 2026, with a CAGR of 15%. Chinese BMS enterprises mostly focus on mobile phones, PCs, Internet of things equipment and IOT lithium battery management. Electric lithium battery management fields such as new energy vehicles are still monopolized by European and American simulation leading enterprises such as ADI and Ti. The company has cultivated BMS for more than ten years and has entered the harvest period. According to the announcement, a number of new BMS products have been under development and internal verification, such as single string fast charging mobile phone protection chip and lithium battery secondary protection chip, which have entered the internal verification stage, so as to continuously improve the company's competitiveness in the field of mobile phone lithium battery protection; At the same time, accelerate the layout of 3 ~ 5 series of lithium battery AFE chips and 6 ~ 10 series of lithium battery AFE chips, and realize the intelligent upgrading of battery pack management through high-precision data measurement, which will help the products move forward to a higher level. In the field of MCU, vehicle specification level body application chip, motor control SOC control chip, industrial control and home appliance iiot system chip are arranged. In terms of AMOLED display driver, layout and develop two driver chips with 750 1624 and 1242 2688 resolutions for smart phones. As the leader of domestic BMS, the company continues to expand product lines such as vehicle specification MCU products and AMOLED display driver chips, with medium and long-term growth Beijing Dynamic Power Co.Ltd(600405) sufficient.
Investment suggestion: we estimate that the company's revenue from 2022 to 2024 will be 2.196 billion yuan, 2.921 billion yuan and 3.826 billion yuan respectively, and the net profit attributable to the parent company will be 572 million yuan, 714 million yuan and 913 million yuan respectively, maintaining the "Buy-A" investment rating.
Risk tip: the R & D and market development of lithium battery management chip are less than expected, and the prosperity of downstream demand is less than expected.
