\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 27 Sino Wealth Electronic Ltd(300327) )
The downstream demand is highly prosperous and the performance continues to be excellent
On March 28, 2022, the company released the 2021 annual report and 2022q1 performance forecast. In 2021, the company’s operating revenue was 1.494 billion yuan, with a year-on-year increase of 47.58%. The net profit deducted from non parent company in 2022q1 is expected to be 101111 million yuan, with a year-on-year increase of 73% ~ 90% and a month on month increase of – 1.65% ~ 8.2%. Considering the high prosperity of downstream demand and the high-speed penetration period of superimposed lithium battery management chip and AMOLED display driver, we raised the profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 556 / 729 / 951 million yuan (the original value in 20222023 will be 543 / 613 million yuan respectively), EPS will be 1.79/2.34/3.06 yuan, and the corresponding PE of the current stock price is 33.0 / 25.2 / 19.3 times, maintaining the “buy” rating.
Based on the broad market of MCU, continue to promote the upgrading of “AMOLED + lithium battery management”
Benefiting from the fact that the MCU industry is in short supply, the company accelerated the localization process in the white power MCU market in 2021, realizing the mass production in the field of variable frequency power supply; At the same time, the company has taken the lead in mass production of 32-bit MCU in large clients of small household appliances, which has promoted the overall performance upgrading of the small household appliance market. In terms of lithium battery management, benefiting from the implementation of the new national standard electric bicycle and the development of Shanxi Guoxin Energy Corporation Limited(600617) energy storage market in China, the company’s lithium battery management chip business revenue has achieved a high growth rate, and continues to promote the development of products in the direction of high number, high process and high withstand voltage. In AMOLED, the company’s new FHD + mobile phone screen product of AMOLED display driver chip has been mass produced and adopted by many panel factories. At the same time, wearable products have also entered the brand market.
In 2022, the situation of short supply is expected to continue, and capacity expansion will promote performance growth
In 2022, the company expects that the tight supply in the supply chain will continue, but will tend to ease. Specifically, the company expects that the white electricity MCU market will remain in short supply, and the domestic appliances and kitchen electricity MCU market will tend to balance supply and demand; The buffer period for the implementation of the new national standard for electric bicycles will end one after another, which is expected to accelerate the performance of lithium battery management chips applied to power terminals; MCU used in sphygmomanometers, blood glucose meters and other medical fields will continue to grow; Benefiting from the penetration trend of AMOLED mobile phone screen, AMOLED display driver chip is expected to maintain a long-term high-speed growth.
Risk warning: there is a risk of continuous tightening of upstream capacity; There is great uncertainty in the speed of customer expansion; There is uncertainty in the research and development progress of new products.
