\u3000\u3 Shengda Resources Co.Ltd(000603) 005 China Wafer Level Csp Co.Ltd(603005) )
Event: in 2021, the company achieved a revenue of 1.4 billion yuan, a year-on-year increase of 28%; The net profit attributable to the parent company was 580 million yuan, a year-on-year increase of 51%. Among them, in 2021q4, the company achieved a revenue of 330 million yuan, a year-on-year decrease of 2%; The net profit attributable to the parent company was 160 million yuan, a year-on-year increase of 43%; Deduct the net profit not attributable to the parent company of 100 million yuan, a year-on-year decrease of 6%; The gross profit margin of the company in a single quarter was 50%, with a year-on-year increase of 1PCT. In 2021, the company’s CIS revenue and profitability will maintain growth. With the subsequent improvement of automobile business, the company’s business scale is expected to reach a higher level.
Automotive chips benefit from the rapid development of electrification and intellectualization. China Wafer Level Csp Co.Ltd(603005) as the only company in mainland China with CSP sealing and testing capability of vehicle specification CIS, it is the elastic target for the core benefit of the upstream of automotive intellectualization. We expect that the proportion of the company’s automobile revenue will increase rapidly, the vehicle gauge line will run through mass production, the production capacity is still in short supply, and further growth is expected in the future.
Core leaders in subdivided fields, with obvious competitive advantages. Focusing on TSV process, the company has the largest market share in the world. It has expanded its production by 12 inches in recent two years. It has the advantages of efficiency and technology. It leads its peers in the business of vehicle specification products and 10MP + products, and binds high-quality customers downstream. The company has continuously strengthened the expansion and innovation of packaging technology and process, steadily promoted the mass production scale of new application fields such as automotive electronics, gradually introduced mass production of medium and high pixel products, gradually expanded the application scale of fan out technology in the field of large-size and high pixels, continuously improved the chip level and system level SIP packaging scale, and began the commercial application of wafer level micro lens business. At the same time, the company is deeply bound with global high-quality sensor enterprises including Sony, Howell, Galaxycore Inc(688728) and continues to grow together with key customers.
Continue to broaden business boundaries. The company acquired anteryon, has more than 30 years of optical research, provides WLO and module manufacturing, and introduces Dutch technology to Suzhou. It has great potential to serve the world’s top semiconductor equipment enterprises and overseas well-known car factories.
As the high-quality target in the upstream of the optical track, the on-board business has become the second growth curve of the company. The company continued to benefit from the high growth of optics, and the on-board camera began to increase in volume, and the security digital market continued to grow. The company’s 12 inch TSV technology has been optimized, and the coverage has been increased from 8mp to 12MP, further increasing the company’s target market. With the gradual increase of vehicle regulation level business, the company will enter a new round of growth period. We expect the company’s revenue to be 1.905 billion yuan / 2.477 billion yuan / 3.096 billion yuan in 2022 / 2023 / 2024; Net profit attributable to the mother; 705 million yuan / 904 million yuan / 1.051 billion yuan, with a year-on-year growth rate of 22.4% / 28.2% / 16.3%; Corresponding to pe20 4X / 15.9x / 13.7x, maintain the ‘buy’ rating.
Risk tip: downstream demand is less than expected.
