\u3000\u3 Guocheng Mining Co.Ltd(000688) Huatai Securities Co.Ltd(601688) 601)
Core view
1q22 profit hit a quarterly high. According to the performance forecast of the first quarter, the company’s 1q22 realized a net profit attributable to the parent of 58-68 million yuan (yoy141% – 182%, qoq32% – 55%), deducting a net profit not attributable to the parent of 53-63 million yuan (yoy148% – 195%), a quarterly high. In addition, according to the previous 2021 performance express, the company’s annual revenue in 2021 was 774 million yuan (yoy43%), the net profit attributable to the parent company was 159 million yuan (yoy137%), and the net profit not attributable to the parent company was 142 million yuan (yoy169%). Among them, the revenue of 4q21 is 200 million yuan (yoy54%, qoq-2%), and the net profit attributable to the parent company is 44 million yuan (yoy269%, qoq-18%).
There is a strong demand for power management chips and actively explore new products and customers. The company’s products are mainly power management chips, and the downstream demand has continued to be strong since 2021. According to icinsights’ prediction, the global analog chip market will grow by 12% to a new high of US $83.2 billion in 2022, of which the general power management chip will increase by 12%, and the communication analog chip will increase by 14% due to the increase of 5g mobile phone shipments and the construction of infrastructure. In the case of short supply of products, the company worked closely with upstream suppliers to quickly change and expand production, so as to achieve better growth of sales scale. At the same time, the company has actively promoted new products and achieved mass sales. On the basis of increasing the share of mobile phone customers, the company has actively expanded to non mobile phone customers. The products have been successfully sold to Haier, Little Swan, Hisense and other home appliance brand enterprises and electric vehicle dashboard brand markets.
Saimi Kentuo, a subsidiary, introduced investors to increase capital and promoted the rapid development of electronic detonator business. Saimi Kentuo, the holding subsidiary of the company, plans to introduce investors to increase capital. After the transaction is completed, the shareholding ratio of the company will be reduced from 51% to 40.8%, but it is still the largest shareholder and has control. Saimi Kentuo is an overall solution provider of electronic detonator module and electronic control system of related initiating explosive devices in the civil explosion industry. The company was established in September 2020 and successively launched various types of electronic delay chips and modules of civil explosion digital electronic detonators, initiation control system, control chips and system equipment for a new generation of artificial weather rockets, electronic modules and equipment for seismic wave exploration Chip modules and control equipment for oil and gas well exploration have reached cooperation with many mainstream civil explosive enterprises, and have been successfully exported to South America, Africa, Australia, South Asia and other places. This transaction is conducive to reducing the asset liability ratio of semiken, enhancing profitability and promoting the rapid development of semiken.
Investment suggestion: the downstream demand continues to be strong and the “buy” rating is maintained
We expect the net profit attributable to the parent company from 2021 to 2023 to be RMB 159 / 302 / 393 million (the previous value was RMB 166 / 246 / 339 million), with a year-on-year growth rate of 137 / 91 / 30%; EPS is 2.48/4.73/6.14 yuan, and the PE corresponding to the share price on March 28, 2022 is 67 / 35 / 27x respectively. The downstream demand of the company is strong, the expansion of customers and products is smooth, and the “buy” rating is maintained.
Risk warning: the research and development of new products is not as expected; Customer verification is not as expected; The demand is less than expected.
