\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Key points
Event:
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%; Net profit deducted from non parent company was 894 million yuan, with a year-on-year increase of 426453%. The company’s 4q21 achieved a revenue of 1.481 billion yuan, a year-on-year increase of 57.27% and a month on month increase of 1.62%; The net profit attributable to the parent company was 291 million yuan, an increase of 472.83% year-on-year and 3.78% month on month; The net profit deducted from non parent company was 281 million yuan, with a year-on-year increase of 837.96% and a month on month increase of 1.66%.
Comments:
In 2021, the company’s performance improved significantly, with positive quarter on quarter growth for four consecutive quarters: the company achieved excellent performance in 2021.
In addition, the company’s operating revenue achieved continuous positive growth of 13.41%, 18.73%, 14.94% and 1.62% respectively from the first quarter to the fourth quarter. From the perspective of business revenue, the revenue of memory chips increased by 135.63% year-on-year; Microprocessor chips increased by 60.59% year-on-year; Intelligent video chips increased by 236% year-on-year; Analog and interconnect chips increased by 120% year-on-year. Part of the growth of storage and analog interconnection business comes from the consolidation of Beijing Sicheng.
The net profit is affected by the value-added amortization of acquired assets, and the actual operation performance is even better: the value-added amortization of intangible assets and fixed assets formed by the company’s M & a event has an impact on the net profit of 132 million yuan in the reporting period. The asset value-added amortization has little correlation with the company’s operation and has no impact on the company’s cash flow. Meanwhile, the gains and losses related to connectivity, Lin, can, MCU and optical fiber communication business brought by the acquisition of ISSI were 105 million yuan. Excluding the impact of M & A, the net profit attributable to the parent company from actual operating income in 2021 is about 1.163 billion yuan. The amortization formed by asset appreciation will decrease with the completion of depreciation and amortization of some acquired fixed assets and intangible assets. New products of Internet business are expected to contribute revenue in 2022, thus reducing profits and losses. Therefore, the related impact on the company’s net profit will also be reduced.
The leading company of vehicle regulation storage has fully benefited from the trend of automotive Intelligence: the company has a complete storage product line, including DRAM, SRAM and flash. Beijing Sicheng, a wholly-owned subsidiary, has focused on chip research and development in the automotive and industrial fields for many years, and will usher in new development prospects in the era of automotive intelligent driving.
Among the company’s memory chips, DRAM products account for the largest source of revenue. The company actively promotes DDR4, lpddr4 and other products, of which 8GB and 16GB DDR4 products have been mass produced and sold, and 8GB lpddr4 products are expected to start sending samples in 2022. The company has a wide range of SRAM products. From traditional synch SRAM and asynchsram products to high-speed QDR SRAM products at the forefront of the industry, the company has independently developed intellectual property rights. In the early stage, the sales proportion of vehicle regulation flash products is still small. Due to the comprehensive competitive advantages of the company’s vehicle regulation flash products, under the company’s active market promotion, the market sales of vehicle regulation flash products are growing rapidly. According to the statistics of omdia, the revenue of SRAM, DRAM and NOR flash products of the company in 2021 ranked second, seventh and sixth respectively in the global market, and was in the forefront of the international market.
Simulation and interconnection grow brightly, and continue to strengthen the construction of vehicle regulation level system: the company also has rich technical accumulation in lighting drive, vehicle interconnection and other technologies. Over the years, the company has focused on the application of high reliability fields such as industry and automobile, and has strict R & D and testing processes in product temperature adaptability and quality control. The company’s simulation and interconnection product line includes LED driver chip, touch sensor chip, DC / DC chip, vehicle microprocessor chip, Lin, can, g.vn and other network transmission chips. In recent years, the intelligent degree of lamps has been improved, and the penetration rate of vehicle LED lighting chips has been continuously improved. At the same time, the company’s interconnected product greenphy is expected to achieve mass production and sales in 2022. It is expected that the market sales of the company’s analog interconnected chip products will continue to maintain a growth trend in the future. The company has established a vehicle specification level laboratory and process, and the vehicle specification level chip has passed the test of aec-q100 system. In addition, the company’s relevant management system has also obtained iso26262 quality system certification (asil-d level), and can develop chips with various ASIL levels.
CPU technology is independent and controllable, and AI and Internet of things products are developed: through years of R & D investment, the company has formed a number of core technologies in embedded CPU, video codec, image signal processing, neural network processor, AI algorithm and other fields, which are independent and controllable. The existing products of microprocessor chip and intelligent video chip adopt MIPS architecture. At the same time, with the development of risc-v architecture, the company is also actively arranging the research and development of risc-v related technologies, and some chips have adopted the self-developed risc-v CPU core..
Microprocessor chips are mainly oriented to various intelligent hardware product markets. During the reporting period, the company’s main markets grew in an all-round way, especially in the QR code market. The company’s influence continued to improve, and its product sales in this market maintained a rapid growth. With the launch of x1600 series chips in the fields of bar code and display control, the company’s market position in the field of commercial equipment such as QR code will be further consolidated.
In the field of intelligent video, the requirements for chip HD performance are constantly upgrading. The company has strong technical ability in computing technology, and the computing ability of related chip products is continuously improved. At the same time, the AI computing power of the company’s chip products has been continuously improved in recent years, and the AI algorithm technology has been continuously enriched, which well meets the market demand for the AI performance of these two types of chips.
Profit forecast, valuation and rating: we believe that the trend of automotive intelligence and the incremental demand of aiot will jointly promote the continuous growth of Ingenic Semiconductor Co.Ltd(300223) . We revised the net profit attributable to the parent company in 2022 and 2023 to 1.296 billion yuan (+ 16%) and 1.665 billion yuan (18%), which were originally predicted to be 1.119 billion yuan and 1.416 billion yuan. We expect that the company’s revenue from 2022 to 2024 will be RMB 6.909/90.20/11.713 billion respectively, and the net profit attributable to the parent company will be RMB 1.296/16.65/2.121 billion respectively. The current market value corresponding to PE is 30 / 23 / 18 times respectively. Maintain the company’s “buy” rating.
Excluding the impact of asset appreciation amortization and profits and losses related to Internet business, we estimate that the actual operating net profit of the company’s headquarters and ISSI in 20222024 is RMB 1.488/1.805/2.251 billion, and the corresponding PE of the current market value is 26 / 22 / 17 times respectively.
Risk tip: the intellectualization of automobile is less than expected, and the memory chip market fluctuates
