\u3000\u3 Shengda Resources Co.Ltd(000603) 005 China Wafer Level Csp Co.Ltd(603005) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 1.411 billion yuan in 2021, with a year-on-year increase of 27.88%; The net profit attributable to the shareholders of the listed company was 576 million yuan, a year-on-year increase of 50.95%; The net profit deducted from non parent company was 471 million yuan, with a year-on-year increase of 43.24%.
The company’s performance increased significantly year-on-year, of which the company’s revenue increased by 27.88% year-on-year in 2021, mainly due to the high prosperity of the semiconductor industry, the continuous and rapid growth of the sensor segment market and the strong demand for market orders, which led to the significant improvement of the company’s profitability. The gross profit margin and net profit margin were 52.28% and 41.01% respectively, with a year-on-year increase of 2.57pct and 6.43pct respectively. From the perspective of Q4 single quarter, the operating revenue of Q4 single quarter was 332 million yuan, a year-on-year decrease of 2.29% and a month on month decrease of 13.93%; The net profit attributable to the parent company was 162 million yuan, a year-on-year increase of 43.12% and a month on month increase of 11.47%. Q4 revenue fell month on month, mainly due to the flat demand for smart phones, but the demand for cars is still growing strongly. Looking forward to 2022, with the rapid increase of the company’s 12 inch line capacity and the rapid increase of automotive CIS demand, the company’s performance is expected to achieve high growth.
The car CIS market continues to grow rapidly, and the company has sufficient long-term growth momentum: the camera is the core sensor of automatic driving. Compared with traditional cars, the number of cameras equipped with smart cars has increased significantly. With the rapid increase of the proportion of smart car shipments, it is expected to drive the sustained and high growth of the automotive CIS market. According to Frost & Sullivan’s statistics, in 2020, the shipment and sales of CIS image sensors in the field of automotive electronics were 400 million and 2.02 billion US dollars respectively, accounting for 5.2% and 11.3% of the overall CIS chip market respectively; It is estimated that the shipment volume and sales volume of automotive electronic CIS image sensors will reach 950 million pieces and US $5.33 billion in 2025, and the proportion in the overall CIS market share will rise to 8.2% and 16.1% respectively. It is expected that the annual compound growth rate will reach 18.89% and 21.42%. The company is a global leader in the sealing and testing of CIS chips. It has a deep layout in the automotive field and is deeply bound with leading manufacturers such as Howell and Sony. It is expected to continue to benefit from the high growth of the automotive CIS market in the future.
Investment suggestion: we expect the company’s revenue from 2022 to 2024 to be 20.5% respectively 2.3 billion yuan, 2.6 billion yuan 9.5 billion yuan, 3.3 billion yuan 8.2 billion yuan, and the net profit attributable to the parent company was 7.7 billion yuan respectively RMB 3.8 billion, RMB 0.9 billion RMB 1.16 billion and RMB 1.16 billion 8.1 billion yuan, with a “Buy-A” investment rating.
Risk warning: downstream demand attenuation risk, market competition risk, and the risk that the production capacity is not up to expectations.
