\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Events
On the evening of April 8, the company released its annual report. In 2021, the company achieved a revenue of 5.27 billion yuan, a year-on-year increase of 143%, the net profit attributable to the parent was 930 million yuan, a year-on-year increase of 1165.3%, and the net profit deducted from non attributable to the parent was 890 million yuan, a year-on-year increase of 4264.5%, which was in line with expectations.
Commentary
Three factors drive the high growth of annual performance. In the 21st year, the company’s revenue was 5.27 billion yuan, with a year-on-year increase of + 143%: the net profit was 926 million yuan, with a year-on-year increase of + 1165.3%. After adding back 132 million yuan of value-added amortization expenses of intangible assets and fixed assets formed by the merger and acquisition of ISSI and 105 million yuan of profits and losses related to the company’s connectivity, Lin, can, MCU and optical fiber communication business, the actual net profit reached 1.164 billion yuan. Reasons for high performance growth: 1) high downstream demand and boom; 2) Product structure optimization; 3) Integration synergy appears. Separately:
\u3000\u30001. High demand in the downstream of the segment track: driven by the shortage of goods in the industry and the high boom of the aiot industry in 21 years, the company’s intelligent video chips and microprocessors achieved a simultaneous increase in volume and price, with a year-on-year increase of 236% and 61% respectively, and the gross profit margin increased by 19pct and 1PCT respectively. In the field of memory chips and simulation, although the demand for other chips for vehicles was dragged down by the shortage of MCU for vehicles, resulting in the slowdown of the growth of the company’s automobile related business, the growth in the fields of medical treatment, communication and consumption was rapid. The overall storage and analog interconnection business increased by 52% and 58% year-on-year, the storage gross profit rate returned to the normal level of 30%, and the gross profit rate of simulation and interconnection increased 6pct, It is expected that in 22 and 23 years, with the alleviation of automobile core shortage and the development of automobile electric and self driving, automobile related business will resume high growth.
\u3000\u30002. Product structure optimization: aiot field: IPC products mainly include all kinds of battery cameras, AI cameras and industry cameras, covering all kinds of end-level products of high, medium and low end. In the 21st year, the company accelerated the layout of high-end products, especially the accelerated promotion of IPC chips with AI computing power, and actively developed chips for the security back-end market in order to make up for the short board; Storage chips, 8GB and 16gbddr4 products have been mass produced and sold, and 8gblpddr4 products are expected to start sending samples in 2022; Analog has accelerated its breakthrough in high-quality LED driven markets such as automobile, industry, office equipment, household appliances and high-end consumption.
\u3000\u30003. Integration synergy: Beijing Sicheng uses the global market and sales resource network to assist MPU and IPC in expanding the global market; IPC develops to industry and automobile; The norflash products of Xinkai facing the consumer market have completed the film production of two products, and are expected to be introduced to the market this year.
Investment advice
It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 1.34 billion / 2.26 billion respectively, corresponding to EPS of 2.69/3.62/4.69 and PE of 33 / 24 / 19 times, and continue to maintain the “buy” rating.
Risk tips
Risk of insufficient capacity; exchange-rate risks; The risk of lifting the ban on stocks; Goodwill impairment risk, etc.
