Zhenlei Technology (688270)
Event: on April 6, the company released its annual report for 2021, realizing an operating revenue of 191 million yuan, a year-on-year increase of + 25.28%; The net profit attributable to the parent company was 99 million yuan, a year-on-year increase of + 28.48%; The net profit deducted from non parent company was RMB 90 million, with a year-on-year increase of + 23.86%.
With new products and new customers, the company's performance has achieved steady growth. The company's main products include terminal RF front-end chip, RF transceiver chip, high-speed and high-precision ADC / DAC, power management chip, micro system and module, etc. According to the company's annual report, the company achieved an operating revenue of 191 million yuan in 2021, a year-on-year increase of + 25.28%; The net profit attributable to the parent company was 99 million yuan, a year-on-year increase of + 28.48%. The R & D investment was 41 million yuan, a year-on-year increase of + 33.68%, accounting for 21.26% of the operating revenue. The revenue of all product lines increased year-on-year, including the revenue of terminal RF front-end chip products + 17.30%, the gross profit margin was 86.39%, and the sales volume reached 36000, with a year-on-year increase of + 37.78%; The revenue of RF transceiver chips and high-speed and high-precision ADC / DAC products was + 2.14% year-on-year, the gross profit margin was 94.9%, and the sales volume reached 19300, with a year-on-year increase of - 15.97%; The revenue of power management chip products was + 122.98% year-on-year, the gross profit margin was 89.01%, and the sales volume reached 311300, year-on-year + 39.03%. Focusing on the field of "RF + simulation", facing the special application market, the company continues to promote product innovation, enrich shelf product models, develop new customers, increase sales scale and realize steady growth of operating revenue.
Master a variety of core technologies of "RF + ADC + power management + module / micro system", and inject power into the sustainable growth of the company with a high view of the downstream. According to the statistics of China Semiconductor Industry Association, the sales volume of China's integrated circuit industry in 2021 was 104583 billion yuan, with a year-on-year increase of 18.2%, of which integrated circuit design accounted for 43.21% and sales volume reached 451.9 billion yuan. At the same time, the special application market has maintained a high landscape. The company focuses on the development of integrated circuit chips and microsystems. Its products and technologies have been widely used in special industries such as wireless communication terminals, communication radar systems, power supply and distribution of electronic systems, and gradually expanded to civil fields such as mobile communication systems and satellite Internet. According to the announcement company, several product lines have achieved product innovation. For example, in the power management chip business line, the company has developed 12 new low dropout linear regulators to meet the needs of spacecraft FPGA, microprocessor, ASIC and other applications; In the terminal RF front-end chip business line, four new RF switch products are developed, which have a variety of switching modes and high power tolerance. At the same time, a number of R & D work has entered the verification stage, such as broadband high linear RF transceiver chip, baseband RF integrated SDR micro system research, which can be applied to intelligent terminals, 5g communications and base stations to realize the high linearity and high efficiency indicators of broadband RF front-end chip and the functional substitution of adrv9002 RF transceiver chip. With the equipment upgrading and information construction in the field of special industries, the demand in the downstream application field of the company will continue to grow and drive the market space of the company's products to expand. We believe that the company has mastered a variety of core technologies of "RF + ADC + power management + module / microsystem", the subject matter is scarce to a certain extent, and is oriented to the market of special industries. The medium and long-term growth of the company is Beijing Dynamic Power Co.Ltd(600405) sufficient.
Investment suggestion: we estimate that the company's revenue from 2022 to 2024 will be 265 million yuan, 360 million yuan and 515 million yuan respectively, and the net profit attributable to the parent company will be 140 million yuan, 196 million yuan and 280 million yuan respectively. It will be covered for the first time and given a "Buy-A" investment rating.
Risk warning: the risk that the R & D progress does not meet the expectation and the risk that the market development is not as expected.
