\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Event: on April 9, the company released its annual report for 2021, realizing an operating revenue of 5.274 billion yuan, a year-on-year increase of + 143.07%; The net profit attributable to the parent company was 926 million yuan, a year-on-year increase of + 116527%; The net profit deducted from non parent company was 894 million yuan, a year-on-year increase of + 426453%.
The four major product lines are in full swing, and the company’s performance has achieved steady growth. The company’s main product lines include microprocessor chips, intelligent video chips, memory chips, analog and interconnection chips, and the downstream markets include automotive electronics, industry and medical treatment, communication equipment and consumer electronics. According to the company’s annual report, the company achieved an operating revenue of 5.274 billion yuan in 2021, a year-on-year increase of + 143.07%; The net profit attributable to the parent company was 926 million yuan, a year-on-year increase of + 116527%. The company invested 521 million yuan in R & D, a year-on-year increase of 56.44%, accounting for 9.88% of the operating revenue. The revenue and gross profit margin of each product line increased further: microprocessor chips achieved a revenue of 199 million yuan, a year-on-year increase of + 60.59% and a gross profit margin of 56.26%; Intelligent video chip achieved a revenue of 979 million yuan, a year-on-year increase of + 236.04% and a gross profit margin of 44.18%; Memory chips, with a revenue of 3.594 billion yuan and a gross profit margin of 30.40%; Analog and interconnect chips achieved a revenue of 413 million yuan and a gross profit margin of 54.63%. After consolidating ISSI, we will continue to integrate domestic and foreign businesses and make continuous efforts in multiple product lines. With the recovery and rebound of the global economy, driven by the market demand of automotive electronics and industrial electronics, the company’s overall revenue showed a rapid growth trend, driving the significant growth of net profit at the same time.
The car core shortage continues, and the acceleration of car intelligence is expected to open a new increment of the company’s performance. Since 2021, due to the strong rebound in demand in the automotive terminal market and the strong demand for vehicle specification chip products, there has been a chip shortage in the automotive electronics industry. According to AFS data, due to the shortage of chips in 2021, the cumulative output of the global automotive market will be reduced by about 10.2 million units. Yole expects the scale of the global automotive semiconductor market to increase to US $78.5 billion in 2026. According to the investor survey minutes, the company has a rich storage product line. SRAM, DRAM and flash are mostly used in differentiated markets such as vehicle regulation and industrial control, competing with storage leaders such as micron and Samsung. Facing the market demand of high quality and high reliability memory chips, the company accelerated the research and development of high-speed DRAM, mobile DRAM and flash memory chip series, and laid out ultra-low power consumption and cost-effective nor flash chips for the mass consumer market. We believe that the company has mastered a variety of core technologies such as vehicle specification level memory chips and analog interconnection chips, and has broad market development prospects. At the same time, it benefits from the promotion of domestic substitution wave and continues to be optimistic about its future increment.
Deeply cultivate the Internet of things and intelligent security market, and continuously improve the competitiveness of products. The company’s microprocessor chips are mainly oriented to the market of intelligent Internet of things (alot) products. During the reporting period, the performance achieved rapid growth, and carried out the research and development and chip production of x1600 series, a new microprocessor product for bar code, display control and other markets, and laid out the research and development of risc-v CPU core on the basis of the original MIPS instruction set architecture. The company’s smart video chips are positioned in the consumer and security market, continuously launching A1 series with high cost performance and T40 series with high computing power and other products, and expanding the overseas market through the global sales network of analog and interconnected product lines. Since 2021, the global video chip supply chain has been in serious shortage. The company has maintained a rapid growth trend with excellent product advantages and industrial influence, and is expected to occupy more market share in the future.
Investment suggestion: we expect the company’s revenue from 2022 to 2024 to be 6.961 billion yuan, 8.771 billion yuan and 10.789 billion yuan respectively, and the net profit attributable to the parent company to be 1.257 billion yuan, 1.563 billion yuan and 1.963 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: the R & D of new products is less than the expected risk; Market competition intensifies risks; The downstream demand is lower than the expected risk; The process of automobile intellectualization is less than the expected risk.
