\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
Q1 strong growth, the market does not need to worry. The company released the performance forecast for 2022q1, realizing a net profit attributable to the parent company of 681 million yuan, a year-on-year increase of 126% and a month on month decrease of – 1%. Q1 is the off-season of the whole year, and the performance decreased by only 1% month on month, reflecting the strong demand for the company’s products. Deduction of non RMB 650 million, a significant increase of 135% year-on-year and – 1% month on month. Previously, the market was worried that the boom changes of MCU and nor industries would affect the company’s performance. The strong growth of Q1 performance once again demonstrated the strong competitiveness of the company’s business.
Highlight the leading advantages, grasp the domestic opportunities, and continuously improve the product array. 1) Nor business: at present, the supply of medium and large capacity and vehicle regulation products continues to be tight. By the end of 2021, 55nm products accounted for 40% + and continued to develop medium and large capacity to promote automotive, server, base station, industry and other fields. 2) MCU business: MCU has been out of stock since the beginning of 2022. The company has full coverage of high, middle and low end, 32 series and 424 models, and the process distribution is 110 / 55 / 40nm (28nm under research). The vehicle specification MCU with M33 core is expected to be launched this year. In 2021, new customers and new revenue will be made in succession. At the same time, large overseas factories are guaranteed to supply to Europe and the United States, and the reduction of supply in the mainland is expected to bring development opportunities. 3) DRAM business: targeting the niche market, at present, 19nmddr4 is stably shipped, and 17nmddr3 is expected to achieve mass production this year. According to the latest product manual, DDR3 has 8 commercial specifications and 8 industrial specifications, with a capacity of 2GB / 4GB and a data rate of up to 2133mbps. It will be used in many fields such as network communication, television, industry, on-board video and audio. In 2021, the global DDR3 market scale exceeded US $7 billion, Korean leaders Samsung and Hynix gradually faded out, Taiwanese manufacturers’ production capacity was not in place, DDR3 supply tended to be tight, and the company seized the opportunity. 4) PMU business: the new product line in 2021 locates the four markets of power management unit, motor drive, LDO and battery charging IC. It is the product extension of MCU vertical market. It matches with MCU and provides a one-stop solution. According to the latest product manual, the four markets are covered, with a total of 9 models. 2021 / 9 the power management chip gd30ws880 applied to TWS headphones has been mass produced.
Fully enter the vehicle regulation and develop with nor + NAND + MCU. 1) Car regulation nor: in March 2019, gd25spinor passed the car regulation certification, covering 2mb-2gb capacity and laying the whole line. At present, it has been adopted in batches in many automobile enterprises. According to the latest product manual, there are 40 products in 2022. 2) Car regulation NAND: in February this year, gd5f’s full range of localized spinand passed the car regulation level certification, which is an effective supplement to nor. According to the latest product manual, there are 6 models in total, covering 1GB / 2GB / 4GB capacity, with 2 models for each capacity. 3) Vehicle gauge MCU: gd32a is a train gauge MCU, which is currently in the customer test stage. It is expected to be mass produced in the middle of the year, and 22h2 will start to generate revenue. The product is positioned as an entry-level vehicle body electronic BCM for the control of middle-end new energy vehicles.
Investment suggestion: the profit forecast of 2021 has been adjusted according to the disclosure of performance express. It is estimated that the net profit in 2022 / 2023 will be 3.22 billion yuan and 4.02 billion yuan respectively, corresponding to 27 / 22 times of PE. Considering that the company is the double leader of mainland storage + MCU industry, under the background of localization, there is strong downstream demand, continuous optimization of product structure, scarcity and growth, and maintains the “buy” rating.
Risk warning event: the prosperity of MCU and nor may be lower than expected, and the OEM cost increases. The company cannot bring the risk of pressure on gross profit margin through product structure adjustment or price increase.
