Ingenic Semiconductor Co.Ltd(300223) ( Ingenic Semiconductor Co.Ltd(300223) ) on April 8, Ingenic Semiconductor Co.Ltd(300223) released its annual report for 2021. The company achieved a revenue of 5.274 billion yuan in 2021, an increase of 143.07% year-on-year; The net profit attributable to the parent company was 926 million yuan, a year-on-year increase of 116527%. Corresponding to the fourth quarter, the company achieved a revenue of 1.481 billion yuan, a year-on-year increase of 57.27% and a month on month increase of 1.62%; The net profit attributable to the parent company was 291 million yuan, a year-on-year increase of 472.83% and a month on month increase of 3.78%.
All business lines have achieved fruitful results and achieved substantial growth in performance. In 2021, benefiting from the rapid growth of aiot and automotive intelligent demand and the high outlook of the industry, the company’s headquarters and ISSI business lines achieved rapid growth. Specifically, (1) in 2021, the company’s headquarters microprocessor chip business achieved a revenue of 199 million yuan, yoy + 60.59%; (2) The intelligent video chip business of the company’s headquarters achieved a revenue of 979 million yuan, yoy + 236.04%, with the fastest year-on-year growth in revenue among the company’s business lines; (3) ISSI memory chip achieved revenue of RMB 3.594 billion, yoy+ 135.63%; (4) The revenue of analog and interconnect chips was 413 million yuan, yoy + 120.11%.
The new products of intelligent video chips are constantly, and microprocessor chips open up new markets. (1) In terms of intelligent video chips, the company has become a mainstream supplier in China’s consumer security monitoring market. The company launched NVR chips for back-end equipment in the field of professional security in 21q4. The company will launch A1 series products for NVR, battery base station and video monitoring data center in the future; The company has developed and launched a new T40 chip for the high-end market of intelligent vision IOT. The product can realize 4K real-time video coding and AI computing power can reach 4-8t, which can meet the increasing AI performance requirements of intelligent video terminals. (2) In terms of microprocessor chip, the company has carried out the research and development and chip casting of x1600 series, a new microprocessor product for bar code market, display control and other markets, which can meet the needs of many kinds of intelligent hardware products in the field of aiot. The company has vigorously developed the smart home and home appliance market based on new products.
ISSI vehicle specification products have been rolled out across the board, benefiting from the intelligent transformation of vehicles. (1) In terms of memory, ISSI has worked in the field of memory for more than 30 years, and provides SRAM, DRAM, flash and other products with high quality and high reliability for automotive electronics, industry and medical treatment. DDR4 products are currently expanding their categories. Vehicle specification DDR4 has begun mass production and sales of 8 / 16GB high-capacity products. 8GB lpddr4 is expected to start sending samples this year, which is expected to fully benefit from the increased demand of vehicle intelligence for on-board storage. In addition, in 2021, the company continued to increase the market promotion of flash product line, and the sales revenue of vehicle specification flash products grew rapidly. The company also launched two new nor flash products for the consumer market, which is expected to achieve mass production and sales this year. (2) At present, the main revenue source of on-board analog chips is led driver chips. The company has hundreds of LED driver products. With the continuous improvement of the penetration rate of on-board LED lighting chips, the revenue of the company’s analog chip product line is expected to maintain a rapid growth trend. Interconnection chips mainly include Lin / CAN bus and network transmission technologies such as g.vn and greenphy. G.vn has been shipped at customers. The company expects greenphy chips to contribute revenue in 22 years, and the connection business in 22 years is expected to enter a rapid growth stage.
Investment suggestion: we expect that the net profit attributable to the parent company in 22 / 23 / 24 years is expected to reach 1.27/16.4/2.07 billion yuan, and the corresponding current price PE is 33 / 26 / 20 times respectively. As the core beneficiary of automotive intelligence, the company has prominent investment value and maintains the “recommended” rating.
Risk warning: product verification is not as expected; Cyclical fluctuations in downstream industries; Intensified market competition
