\u3000\u3 Guocheng Mining Co.Ltd(000688) 099 Amlogic (Shanghai) Co.Ltd(688099) )
Matters:
Announcement of the company: it is expected to achieve an operating revenue of 1.48 billion yuan in the first quarter of 2022, with a year-on-year increase of 59.3% and a month on month decrease of 4.2%; The net profit attributable to the parent company was about 270 million yuan, with a year-on-year increase of 201.8% and a month on month decrease of 13.4%; Deducting non net profit of about 256 million, with a year-on-year increase of 226.9% and a month on month decrease of 10.7%.
Guoxin electronics’s view: according to the cycle characteristics of the industry in which the company is located, the first quarter is often the off-season of the whole year. Combined with the rise in the quotation of the company’s main wafer foundry in the fourth quarter of last year, the company’s 1q22 performance can still keep the revenue basically flat and the profit rate high after the record high 4q21, which confirms the strong demand for smart set-top box SOC, aiot chip, wireless connection chip and other segments in the downstream, The technology and product advantages accumulated by the company for a long time and the fruitful strategic layout of the company for many years. We are optimistic that the company will seize the opportunity of the rapid expansion of chip demand in aiot innovation cycle and realize the coordinated and rapid development of various product lines, so as to significantly improve its operating performance and maintain the forecast of net profit attributable to parent company of RMB 1.114/1.418 billion in 22 / 23 years. Taking into account the recent adjustment of the “60-50 times” of the PE industry, the average purchase price of the semiconductor sector fell to 162.50-148.2 times of the “60-50 times” of the former 20208, and the corresponding value of the former 20208. Risk warning: the demand is less than expected; Chip manufacturing capacity is lower than expected; New products are not as expected.
Comments:
The company’s deep accumulation of technology, products and customers resonates with the strong demand of market segments, and 1q22 is expected to have a significant year-on-year increase in performance
According to the company’s announcement, the company expects 1q22 to achieve a revenue of about 1.48 billion (YoY 59.29% qoq-4.2%), a net profit attributable to the parent of about 270 million (yoy201.8% qoq-13.4%), and a net profit deduction of about 256 million (YoY 226.88% qoq-10.7%) from non attributable to the parent, which remains at a high level of 17.3%. Main reasons for substantial performance growth: 1 The market demand of the company’s industry segments is good. The company actively seizes market opportunities, strengthens market development and further expands global market opportunities. Benefiting from the company’s long-term accumulated technical and product advantages, sustained market demand and the results of the company’s multi-year strategic layout, the shipment of chips increased steadily year-on-year in the first quarter of 2022, further consolidating and improving the company’s market position. 2. The profitability of the company in the first quarter of 2021 was low. Affected by the scale effect and active sales strategy, the profitability of the company in the first quarter of 2022 was greatly improved.
Optimistic about the collaborative development prospect of the company’s five business lines in the aiot innovation cycle
1. The smart set top box business has entered a new growth cycle. Aiot has led to a significant increase in the shipment of AI audio and video chips. The smart set top box SOC has obvious advantages in product performance and stability in the Chinese operator market, and seizes the opportunity of the increase in the centralized purchase of IPTV set top boxes by operators. According to the incomplete statistics of streaming media network, in 2021, China Mobile’s public purchase of smart set top boxes was about 54.1 million units, compared with 34.5 million units in 2019 and 202015.1 million units increased significantly.; It has obtained the certification of many international mainstream conditional access systems including Google overseas, successfully and quickly introduced many operators (Comcast, sky, etc.) and mainstream streaming media providers around the world, and achieved a significant increase in shipments at the same time outside China. With the help of the company’s high-quality customer base (Google, Amazon, etc.) and platform advantages, the category, application field and technical level of AI audio and video system terminal chips have been continuously expanded and improved according to the needs of aiot, and multiple application fields such as smart home, smart office and smart business have been introduced, driving the significant increase of delivery volume.
2. The shipment volume of WiFi Bluetooth chip has increased significantly, and the vehicle chip and 6nm advanced manufacturing process are progressing smoothly
The company’s high-speed WiFi 5 Bluetooth chip w155s1 shipments have significantly increased with the smooth global shipments of Xiaomi TV stick, smart speakers and other products with the company’s main chips, effectively driving the growth of revenue and the smooth research and development of the next-generation WiFi chip; The company’s first generation vehicle chip v901d has been successfully introduced into the mass production vehicle front mounted vehicle entertainment system, and the new generation of 12NM vehicle chip has been successfully developed and applied in the target intelligent cockpit; The 6nm process test platform has entered the stage of testable streaming. We believe that the company’s new products and forward-looking technology reserves are expected to lay a stable foundation for the company’s long-term growth.
