\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Event:
The company released its annual report for 2021, and achieved an annual operating revenue of 5.274 billion yuan, a year-on-year increase of 143.07%; The net profit attributable to the parent company was 926 million yuan, a year-on-year increase of 116527%; The net profit attributable to the parent company after non deduction was 894 million yuan, a year-on-year increase of 426453%, and the annual performance basically met the expectations. comment:
Storage business leads high performance growth, and the company’s profitability continues to rise
Beijing Sicheng, a subsidiary, has obvious advantages in the automotive storage market. The company achieved a storage chip revenue of 3.594 billion yuan in the whole year, with a year-on-year increase of 135.63%, accounting for 68.15%; The company achieved revenue of 978 / 413 / 199 million yuan respectively on the product lines of intelligent video, analog interconnection and microprocessor chips, with a year-on-year increase of 236.04% / 120.11% / 60.59%. The company’s performance showed a multi-point flowering trend. In 2021, the company strengthened cost management. Under the scale effect and product structure optimization, the company’s gross profit margin increased by 9.83 percentage points year-on-year to 36.96%, returned to the normal level of more than 30% of the industry, and its profitability rebounded.
Consolidate storage advantages and drive long-term growth through business collaboration
After acquiring Sicheng in 2020 and entering the field of memory chips, the company completed the layout of “computing + storage + simulation” on the product side. On the one hand, the company increased its storage business, developed high-speed DRAM, mobile DRAM and other memory chip series products, consolidated the company’s advantages in the storage field, and fully enjoyed the dividends brought by the rapid growth of downstream market demand such as automobile, industrial control and high-end consumer goods; On the other hand, the company integrates resources and uses silicon to form a global market and sales network to broaden the application fields for intelligent video chips, LED driver chips, MCU, touch sensor chips and other products. Different businesses cooperate with each other to further enhance the company’s market competitiveness in the field of IC design. The company’s performance is expected to usher in long-term growth.
Profit forecast and investment suggestions
The prosperity of the automotive storage industry is on the rise. We expect the company’s revenue to be 6.892/8.695 billion yuan (original value of 5.714/7.109 billion yuan) and net profit to be 1.191/1.487 billion yuan (original value of 9.96/1.214 billion yuan) respectively from 22 to 23 years, and increase the profit for 24 years. The predicted revenue is 10.544 billion yuan, net profit is 1.824 billion yuan, EPS is 2.48/3.10/3.80 yuan / share, and the corresponding PE is 35 / 28 / 23 times respectively. Considering that the company is in the leading position in China in the automotive storage industry, the company is given about 43 times PE according to the 2022 profit forecast, and the target price is 106.64 yuan, which is raised to the “buy” rating.
Risk tips
The market penetration of new products is less than expected, the production capacity is insufficient, the industry competition intensifies, and the automobile sales volume is less than expected
