\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Events
Ingenic Semiconductor Co.Ltd(300223) released the annual performance report for 2021: the company achieved an operating revenue of 5.274 billion yuan in 2021, with a year-on-year increase of 143.07%, a net profit attributable to the parent company of 926 million yuan, with a year-on-year increase of 116527%, and a net profit attributable to the parent company of 894 million yuan after deduction, with a year-on-year increase of 426453%.
Key investment points
All product lines grew rapidly and their profitability improved significantly
In Q4 of 2021, the company achieved a revenue of 1.481 billion yuan (year-on-year + 57.55%, month on month + 1.6%), a net profit attributable to the parent company of 291 million yuan (year-on-year + 471%, month on month + 3.9%), and a net profit attributable to the parent company of 281 million yuan (year-on-year + 837%, month on month + 1.8%).
In terms of subdivided products, in 2021, the revenue of microprocessor chip / intelligent video chip / storage chip / analog and Internet chip was RMB 199 / 979 / 3594 / 413 million respectively, with a year-on-year increase of 60.59% / 236.04% / 135.63% / 120.11% respectively; In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 36.96% (year-on-year + 9.83pct), of which the gross profit margin of microprocessor chip / intelligent video chip / storage chip / analog and Internet chip was 56.26% (year-on-year + 0.94pct) / 44.18% (year-on-year + 18.93pct) / 30.40% (year-on-year + 9.67pct) / 54.63% (year-on-year + 5.80pct); In terms of period expenses, in 2021, the expense rate (excluding R & D) was 7.56% (year-on-year -2.53pct), of which the sales expense rate was 4.90% (year-on-year -1.52pct), the management expense rate was 3.03% (year-on-year -1.48pct), and the financial expense rate was – 0.37% (year-on-year + 0.46pct). In addition, in 2021, the company’s R & D expenses were 521 million yuan (year-on-year + 56.44%), and the R & D expense rate reached 9.88%.
Work together with multiple product lines to create a strategic pattern of “computing + storage + simulation”
Up to now, the company has formed many business product lines such as microprocessor chip, intelligent video chip, storage chip, analog and interconnection chip, and has independent and controllable core technologies in many fields such as CPU, AI, multimedia, SRAM, DRAM, flash, analog, MCU and connectivity. The products are widely used in automotive electronics, industry and medical treatment, communication equipment and consumer electronics.
Microprocessor chip business, the company’s products are mainly for all kinds of intelligent hardware markets, among which the influence in the QR code market has been continuously improved, and the product sales have maintained rapid growth. With the launch of the company’s new product X2000 and the subsequent higher cost performance product x1600 series, it will contribute to the continuous growth of microprocessor business. The company’s products are self-developed, with certain cost advantages, low-power performance and design flexibility, which will be more conducive to the expansion of the company in related fields in the future.
Intelligent video chip business: the company’s existing series of chips can cover the needs of various end-level products in the intelligent vision IOT market, with the characteristics of high intelligence, high imaging quality and low power consumption. At present, they are recognized and adopted by brand customers and operators including wyze, Anker, Hualai, Xiaomi, qiao’an, 360, China Mobile, telecom and China Unicom in the consumer market. In 2021, the company launched NVR chips for back-end equipment in the field of professional security to further supplement the video chip product line, which is expected to increase in 2022.
According to the statistics of omdia, the revenue of SRAM, DRAM and norflash products of the company ranked second, seventh and sixth respectively in the global market in 2021, ranking in the forefront of the international market. At present, the company has a wide range of SRAM categories. From traditional synchsram and asynchsram to cutting-edge high-speed qdrsram, the company has independently developed intellectual property rights. DRAM revenue accounts for the highest proportion in the company’s storage business. Among them, 8GB and 16gbddr4 products have achieved mass production and sales, and 8gblpddr4 products are expected to start sending samples in 2022. The company’s flash product line includes the current global mainstream norflash memory chip and nandflash memory chip. At present, the sales of vehicle regulation products are growing rapidly. At the same time, the company has completed the production of two norflash chips for the mass consumer market, and is expected to realize mass production and sales in 2022.
Analog and interconnection chip business. The products include LED driver chip, touch sensor chip, DC / DC chip, vehicle microprocessor chip, Lin, can, g.vn and other network transmission chips, which are mainly for automotive, industrial, medical and high-end consumer markets. Among them, in the field of vehicle specification LED driver chips, the company has rich products, including headlights, daytime running lights, high beam lights, fog lights, turn signals, combined tail lights (position, braking, reversing, running water, etc.), license sector lights and other driver chips. With the gradual evolution of vehicle lighting from a single lighting mode to an integrated mode of sound, light and electricity in recent years, the penetration rate of vehicle LED lighting chips is increasing, So as to bring growing market space for the company’s vehicle LED driver chip. In addition, the company continued the research and development of automotive DC / DC regulating chips. Some new products launched engineering samples and carried out risk mass production. At the same time, it continued the research and development and testing of Lin, can, g.vn and other network transmission products for automotive applications. Some products carried out sample production and risk trial production. Among them, greenphy products are expected to achieve mass production and sales in 2022.
We believe that the company combines the advantages in the field of computing and AI with the strong competitiveness in the field of memory and simulation to create a strategic pattern of “computing + storage + simulation”, which is expected to achieve rapid growth under the wave of automotive intelligence and aiot in the future.
Profit forecast
It is predicted that the revenue of the company from 2022 to 2024 will be RMB 7.059 billion, RMB 9.016 billion and RMB 10.882 billion respectively, and the EPS will be RMB 2.56 million, RMB 3.18 million and RMB 3.82 million respectively. The corresponding PE of the current stock price will be 34, 28 and 23 times respectively, maintaining the “recommended” investment rating.
