\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Core view
The rapid growth of multiple product lines has led to a significant increase in performance in 2021. In 2021, the annual revenue was 5.274 billion yuan (yoy143.1%), the net profit attributable to the parent company was 926 million yuan (YoY 1165.3%), and the net profit not attributable to the parent company was 894 million yuan (YoY 4264.5%). In the fourth quarter, the single quarter revenue was 1.481 billion yuan (YoY 57.3%, QoQ 1.6%), the net profit attributable to the parent was 291 million yuan (YoY 472.8%, QoQ 3.8%), and the net profit not attributable to the parent was 281 million yuan (YoY 838.0%, QoQ 1.8%). The substantial increase in annual performance was mainly due to the strong downstream market demand of the company’s multiple product lines such as on-board storage, on-board analog and Internet chips, MPU and intelligent video chips, and the company’s technology accumulation and business strategy advantages. Among them, the profit growth rate was also due to the low base in 2020 due to the company’s failure to consolidate Beijing Silicon before June 2020.
Smart video and memory chips are the main growth points, and silicon accounts for nearly 80% of the revenue. The company’s revenue of microprocessor chips, intelligent video chips, memory chips and analog and Internet chips in the past 21 years was 199, 979, 359 and 413 million yuan respectively, with a year-on-year increase of 60.6%, 236.0%, 135.6% and 120.11%; The gross profit margin increased by 0.9pct, 18.9pct, 9.7pct and 5.8pct to 56.3%, 44.2%, 30.4% and 54.6% respectively, and the comprehensive gross profit margin of the main business integrated circuit design increased by 10PCT to 36.8%, of which the annual revenue of Beijing Sicheng, a wholly-owned subsidiary of the company, was 4.082 billion yuan (accounting for 77% of the total revenue of the company), and the net profit was 608 million yuan. During the consolidation period from June to December 2020, Beijing Sicheng’s revenue and net profit were 1.744 billion yuan and 118 million yuan respectively.
R & D continued to strengthen, and the technology and product pattern of “computing + storage + simulation” continued to expand. The company’s annual R & D expenditure was 520 million yuan (YoY 56.4%), and the scale effect of the sharp increase in revenue caused the R & D expenditure rate to drop by 5.47pct to 9.88%; The number of R & D personnel increased by 11.5% to 573. The company continues to develop and innovate in the technical fields of video coding and decoding, image signal processing, AI processor and algorithm, continuously accumulates technologies such as high capacity, high performance and low power consumption in the storage business, and continues to invest in research and development in the aspects of simulation and interconnection, high brightness, high current and light efficiency LED and advanced automobile internal connection technology. The company expects that in 2022, new products such as 8GB lpddr4, consumer grade nor flash, greenphy vehicle specification interconnection chip and security back-end AI products will send samples or enter mass production and sales. The company is expected to continue to grow rapidly through technology and product expansion.
Investment advice: maintain the “buy” rating.
We expect the company’s operating revenue to increase by 31.8%, 28.6% and 24.9% year-on-year to RMB 6.95, 8.94 and 11.16 billion from 2022 to 204, and the net profit attributable to the parent company to increase by 41.7%, 28.6% and 36.6% year-on-year to RMB 1.31, 1.69 and 2.31 billion, corresponding to PE of 32.2, 25.1 and 18.4 times, maintaining the buy rating.
Risk warning: product sales are less than expected; Intensified market competition; Changes in national policies
