\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 74 Changsha Jingjia Microelectronics Co.Ltd(300474) )
Event: Changsha Jingjia Microelectronics Co.Ltd(300474) released the performance forecast for the first quarter of 2022. The company expects to achieve revenue of 350380 million yuan in Q1 of 2022, with a year-on-year increase of 64.80% – 78.93%. The net profit attributable to the parent company was 72-82 million yuan, with a year-on-year increase of 47.37% – 67.83%. Net profit deducted from non parent company was 67-77 million yuan, with a year-on-year increase of 46.13% – 67.85%. The performance greatly exceeded market expectations.
Key investment points
The revenue increased significantly, and the profit side showed the real profitability of the company. The company’s performance increased significantly year-on-year, mainly due to the obvious year-on-year increase in the sales of products in the field of chips and graphics display and control. In 2021, due to the impact of the accrual of equity incentive expenses, the profit side of the company was under pressure. In 2022, the net profit attributable to the parent company of Q1 returned to a high growth rate, and the real profitability was revealed. As a high-tech company, equity incentive and R & D investment may affect the company’s profit performance in the short term. The chip industry is an industry with obvious scale effect, and the subsequent profit quality of the company will continue to improve.
9 series orders have been partially delivered, and the chip revenue is still dominated by 7 series. In 2022, the revenue of Q1 chip is mainly 7 series, and 9 series has formed part of the proportion, which is mainly due to the delivery of 100000 orders of 9 Series in the early stage.
9 series has been gradually recognized by industry Xinchuang customers, and the demand for 7 series is stable: for 9 series products, on March 17, 2022, the company announced that it had obtained 100000 orders for 9 series products. On March 23, the company announced that the Youpin Xinchuang multi screen all-in-one machine launched in cooperation with Youpin technology has completed the national production substitution of important parts for the first time, and has begun pilot application in many securities companies in China. In terms of 7 series products, the party and government information and innovation market is active, and the demand of downstream complete machine factories is stable.
Xinchuang market is booming, and domestic GPU leaders have fully benefited. We expect that the scale of the party and government information and innovation industry is expected to increase year-on-year in 2022, exceeding market expectations; The scale of the industry’s information and innovation market is expected to more than double. As the only domestic GPU company whose products are recognized by the market and can be mass produced on a large scale, the company is expected to achieve large-scale production.
Profit forecast and investment rating: in 2022, the market scale of the information innovation industry is expected to increase significantly, the leading position of Changsha Jingjia Microelectronics Co.Ltd(300474) domestic GPU is stable, the performance in the first quarter is much higher than the market expectation, and the subsequent performance is expected to continue to shine. Based on this, we maintain the net profit attributable to the parent company of Changsha Jingjia Microelectronics Co.Ltd(300474) 20212023 of RMB 294 / 409 / 528 million, corresponding to the current PE of 92.30/66.30/51.35 times, maintaining the “buy” rating.
Risk warning: the promotion of localization policy is not as expected; China’s military expenditure and military industry informatization are less than expected; The company’s product R & D process is less than expected.
