\u3000\u3 Guocheng Mining Co.Ltd(000688) 521 Verisilicon Microelectronics (Shanghai) Co.Ltd(688521) )
Conclusions and suggestions:
The company released its annual report for 21 years. In the past 21 years, the revenue has increased by more than 40%, the net profit has reversed the loss, and the company has made profits for three consecutive quarters.
It is estimated that the company will realize a net profit of 120 million yuan and 170 million yuan in 202223, with a year-on-year increase of 775% and 44% respectively, and EPS of 0.24 yuan and 0.34 yuan respectively. At present, the share price corresponds to 205 times and 143 times of PE from 2022 to 2023 respectively, and the market sales rate in 2023 is 6.3 times. Considering the scarcity of the company, at the same time, the elasticity of future performance will further appear, and the "buy" rating will be maintained.
The performance turned around and the flexibility gradually appeared: in 2021, the company achieved a revenue of 2.14 billion yuan, with yoy increasing by 42%; The net profit was 13.29 million yuan, with a year-on-year turnaround of eps0.5% 03 yuan. Among them, in the fourth quarter, the company achieved a revenue of 620 million yuan in a single quarter, yoy increased by 38.9%, and achieved a net profit of 35.11 million yuan, reversing losses year-on-year and making profits for three consecutive quarters. In terms of business, in 2021, the company's semiconductor IP licensing business (including intellectual property licensing fee income and royalty income) increased by 20.8% year-on-year, and the one-stop chip customization business (including chip design business income and mass production business income) increased by 55.5% year-on-year. From the perspective of gross profit margin, the company's comprehensive gross profit margin in 2021 was 40.1%, a decrease of 4.9 percentage points over the same period last year, mainly due to the rapid increase in the proportion of one-stop chip customization service business with low gross profit margin, resulting in a structural decline in gross profit margin. The gross profit margin of one-stop chip business increased from 17.3% in 2020 to 22.4%, an increase of 5.1 percentage points.
Continuous optimization of customer structure. From the perspective of downstream customers, the proportion of system manufacturers, Internet enterprises and cloud service providers in the company's customer group increased. In 2021, the proportion of the company's revenue from system manufacturers, Internet enterprises and cloud service providers in the total revenue increased to 36.2%, and the revenue contributed by the above customer groups increased by 57.5% year-on-year. The company made use of advanced chip customization technology, rich IP reserves and the accumulated experience of serving all kinds of customers for a long time, It has become one of the important chip design service partners of system manufacturers, Internet companies and cloud service providers. The service companies include Samsung, Google, Amazon, Baidu, Tencent, Alibaba and other international leading enterprises.
Profit forecast: looking ahead, leading cloud computing manufacturers will increase capital expenditure one after another in 2022, and the growth momentum of the company's related businesses will continue to improve. We expect the company to realize a net profit of 120 million yuan and 170 million yuan in 202223, with a year-on-year increase of 775% and 44% respectively, and EPS of 0.24 yuan and 0.34 yuan respectively. At present, the share price corresponds to 205 times and 143 times of PE from 2022 to 2023 respectively, and the market sales rate in 2023 is 6.3 times. Considering the scarcity of the company, at the same time, the elasticity of future performance will further appear, and the "buy" rating will be maintained.
Risk warning: the impact of the epidemic exceeded expectations, and the price fluctuation of raw materials exceeded expectations;
