\u3000\u3 Guocheng Mining Co.Ltd(000688) 099 Amlogic (Shanghai) Co.Ltd(688099) )
Event overview
The company released the performance forecast for the first quarter of 2022. According to the preliminary calculation of the financial department, it is expected to achieve an operating revenue of about RMB 1480 million in the first quarter of 2022, an increase of about RMB 5508738 million compared with the same period of last year, with a year-on-year increase of about 59.29%; It is estimated that the net profit attributable to the owners of the parent company in the first quarter of 2022 will be about 270 million yuan, an increase of about 1805353 million yuan or 201.80% year-on-year compared with the same period of last year; It is estimated that in the first quarter of 2022, the net profit attributable to the owner of the parent company after deducting non recurring profits and losses will be about 256 million yuan, an increase of about 1776841 million yuan compared with the same period of last year, a year-on-year increase of about 226.88%.
Analysis and judgment:
Q1 performance increased year-on-year, and multi business development can be expected in the future
According to the 2021 annual performance express released by the company on February 25, 2022, the company realized a net profit of 813584600 yuan attributable to the shareholders of the listed company in 2021. Compared with the net profit of 5018435 million yuan in the first three quarters of 2021, Q4 company realized a net profit of 311741100 yuan attributable to the parent company in 2021. Taking into account the global epidemic and other adverse effects of Q1 in 2022, The company can realize a net profit of about 270 million yuan in the first quarter of 2022. We think there are two main reasons:
The first is that the company’s original advantageous products continue to expand the increment, which mainly comes from the strong market demand for intelligent set-top boxes and AI audio and video terminals. By constantly expanding global market opportunities and rapidly importing new products with the platform advantages of existing customer base and SOC, the company can achieve rapid improvement in both Chinese and overseas sales. The set-top box industry is in a two wheel drive mode of IP replacement of newly installed and existing products, Compared with the overall set-top box market, IP replacement is increasing, which is very beneficial and sustainable for the company; The second is the continuous expansion of other products of the company. After the first mass production of WiFi chips in the third quarter of 2020, the company launched a new generation of products in August 2021, which supports dual band high-speed data transmission WiFi 5 + BT5 with high throughput video transmission 2. The single chip has been continuously certified by major customers, the product performance has been continuously improved, the product has been commercialized on a large scale, and the sales volume has been continuously improved. The company’s artificial intelligence vision chip has been sold on an overseas scale and has been growing. The subsequent company will continue to launch new products, and so on. Subsequently, the company will continue to increase R & D investment in five directions: smart set-top box chip, smart TV chip, AI audio and video chip, Wi Fi Bluetooth chip and vehicle audio and video terminal. It is expected that the continuous breakthrough of new products in the future will continue to inject new momentum into the company’s performance growth.
Investment advice
Maintaining the previous forecast, the company is expected to achieve revenue of 4.775 billion yuan, 6.423 billion yuan and 8.435 billion yuan from 2021 to 2023, and net profits attributable to shareholders of listed companies of 813 million yuan, 1.076 billion yuan and 1.421 billion yuan respectively, with corresponding EPS of 1.98 yuan, 2.62 yuan and 3.46 yuan respectively, corresponding to the closing price of 115.30 yuan on April 8, 2022, and PE of 58.27 times, 44.05 times and 33.36 times respectively, Maintain the “buy” rating.
Risk tips
The R & D Progress of new products is less than expected; The downstream demand fluctuates greatly; Upstream foundry capacity is tight.
