\u3000\u3 Guocheng Mining Co.Ltd(000688) Huatai Securities Co.Ltd(601688) 601)
Events
Wuxi Etek Microelectronics Co.Ltd(688601) released the annual performance report for 2021: the company achieved an operating revenue of 774 million yuan in 2021, with a year-on-year increase of 42.50%, a net profit attributable to the parent company of 159 million yuan, with a year-on-year increase of 137.85%, and a net profit attributable to the parent company of 142 million yuan after deduction, with a year-on-year increase of 169.65%.
The revenue increased steadily, and the gross profit margin of power management increased significantly
In terms of subdivided products, the revenue of the company’s power management chip products and other products was 662 / 111 million yuan respectively, with a year-on-year increase of 42.04% / 45.12% respectively; In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 39.00% (year-on-year + 9.70pct), of which the gross profit margin of power management chips reached 38.72% (year-on-year + 9.51pct). The increase was mainly due to the continuous introduction of new products of power management chips and the increase in the sales of some high-performance products; In terms of period expenses, in 2021, the expense rate (excluding R & D) was 9.15% (year-on-year -1.03pct), of which the sales expense rate was 4.82% (year-on-year -0.27pct), the management expense rate was 3.89% (year-on-year + 0.80pct), and the financial expense rate was 0.44% (year-on-year -1.56pct). In addition, in 2021, the company’s R & D expenses were 64 million yuan (year-on-year + 64.47%), and the R & D expense rate reached 8.29%.
Deeply plough the power management track, increase the share of Chinese customers + large-scale growth driven by new application fields
The company has been deeply engaged in the field of power management for nearly 20 years, and the performance indexes of the main power conversion chips and power protection chips have reached or exceeded the international and Chinese bidding products. Adhering to the key customer strategy for many years, it officially entered the supplier system of Samsung Electronics in 2010, gradually formed a good market reputation, and passed the certification of mainstream consumer electronics brand suppliers such as Xiaomi and LG. At present, the penetration rate of the company’s products in China’s mobile phone brand is still at a low level, and it is expected to gradually increase its share with outstanding performance and stable quality in the future.
At the same time, the company actively expands the new application scenarios of new products, including DCDC, ACDC, PD fast charging chip and signal chain. The application fields of products are also gradually expanded from mobile phones and wearable devices to home appliances, automotive electronics and other business sectors. In the field of home appliances, the company’s products have been successfully sold to Haier, Little Swan, Hisense and other brand enterprises and automotive electronics, The company’s products include power management chips and tire pressure sensor operational amplifier products applied to automobile front mounted entertainment system. At present, they have been shipped in small quantities.
The policy promotes the quantity of electronic detonators, and the company’s performance is very flexible
The Ministry of industry and information technology requires to strictly implement the policy of reducing and replacing industrial detonators with industrial digital electronic detonators, and comprehensively promote industrial digital electronic detonators. In addition to retaining a small amount of production capacity for export or other permitted special purposes, the production of industrial detonators other than industrial digital electronic detonators shall be stopped before the end of June 2022 and the sales of industrial detonators other than industrial digital electronic detonators shall be stopped before the end of August 2022.
Saimi Kentuo, the holding subsidiary of the company, is an overall solution provider of electronic detonator module and electronic control system of related initiating explosive devices in civil explosion industry. It has launched various models of electronic delay chip and module of civil explosion digital electronic detonator, initiation control system, supporting equipment of production line, testing equipment and other products, as well as control chip and system equipment for a new generation of artificial weather rocket, electronic module and equipment for seismic wave exploration Chip module and control equipment for oil and gas well exploration. At present, it has reached cooperation with many mainstream civil explosive enterprises and successfully explored overseas markets. Its products are exported to South America, Africa, Australia, South Asia, Russia and other places.
We believe that the company’s deep cultivation of power management chips for 20 years and its entry into Samsung’s supply chain has proved its product competitiveness. In the future, with the increase in the proportion of Chinese brand customers and the large volume of new products and new applications, it is expected to continue to increase its performance. At the same time, the amount of electronic detonators driven by the benefit policy will also bring sufficient flexibility to the company’s performance.
Profit forecast
The current investment income of the company is 1.2852 billion yuan, and the recommended investment income of the company is 1.652 billion yuan, and the recommended investment income of the company is 2.987 billion yuan in 2027, respectively, which is 2.987 billion yuan and 2.987 billion yuan, respectively.
Risk tips
Downside risk of industry prosperity, risk of product R & D progress falling short of expectations, risk of intensified industry competition, risk of overseas policy changes, etc.
