\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Key investment points
Performance summary: in 021, the company achieved an operating revenue of 5.27 billion yuan, a year-on-year increase of 143.1%, and a net profit attributable to the parent company of 930 million yuan, a year-on-year increase of 1165.3%.
The company’s revenue exceeded expectations and the profit level increased significantly. 2021: 1) from the perspective of revenue, benefiting from the strong market demand, the company’s storage / intelligent video / analog and Internet / microprocessor chip business achieved revenue of RMB 35.9/9.8/4.1/200 million respectively, with a year-on-year increase of + 135.6% / + 236.0% / + 120.1% / + 60.6%. 2) From the profit side, the net profit attributable to the parent company increased by 165.3% year-on-year, and the sales gross profit margin was 40.0%, year-on-year + 12.9pp; The net profit margin on sales was 17.5%, with a year-on-year increase of +14.1pp. 3) From the expense side, the company’s sales / management / R & D expense ratio was 4.9% / 3.0% / 9.9% respectively, with a year-on-year increase of -1.5pp / – 1.5pp / – 5.5pp respectively.
The strong growth momentum of LED’s analog storage and chip driven businesses. In terms of storage, according to the statistics of omdia, the global market share of SRAM, DRAM and NOR flash of the company ranked second, seventh and sixth respectively in 2021; In the vehicle regulation market, the company’s SRAM and DRAM products have more significant competitive advantages. In the future, automotive intelligence will bring strong demand for memory chips, and Chinese automobile manufacturers are also continuously increasing the procurement of domestic chips. With the accelerated introduction of the company’s vehicle specification flash and other products in the market, superimposed SSI’s many years of experience in memory chips and global customers will grow or accelerate the release in the future, with a corresponding growth space of more than $2 billion. In terms of simulation, the company’s products are mainly led driver chips used in automobile, industry and other fields, which still achieved 73% growth in 2021 under the condition of insufficient production capacity. In the future, the demand for analog chips in the automotive, industrial, consumer and other markets is expected to continue to be strong. The company is expected to improve the cost performance and market share by increasing R & D and optimizing the supply chain layout.
The intelligent video chip will expand horizontally and improve the layout from front-end to back-end, middle and low-end to middle and high-end. The company is now the mainstream supplier of consumer monitoring in China. In 2021, the company realized the first NVR chip and accelerated into the IOT track. In the future, with the shipment of AI IPC, back-end NVR, automotive video and other chips, the company is expected to improve the layout of front-end to back-end, medium and low-end to medium and high-end I PC, security to AI OT and the industry market, improve its competitiveness in the industry market and stabilize its market share in intelligent video chips.
Profit forecast and investment suggestions. It is estimated that from 2022 to 2024, the company’s revenue will be RMB 6.97/87.8/10.93 billion respectively, and the net profit attributable to the parent company will be RMB 1.22/15.9/2.03 billion respectively. Considering the firm position of the company in the domestic on-board storage business and the prosperity sustainability of automotive electronics in the future, we give the company 40 times PE in 2022, corresponding to the target price of 101.20 yuan. For the first time, give a “buy” rating.
Risk warning: the R & D progress is less than the expected risk, the downstream demand is less than the expected risk, and the competition intensifies the risk.
