\u3000\u3 Guocheng Mining Co.Ltd(000688) 099 Amlogic (Shanghai) Co.Ltd(688099) )
Event:
The company released its annual report for 2021, with an operating revenue of 4.777 billion yuan in 2021, a year-on-year increase of 74.46%; The net profit attributable to the parent company was 812 million yuan, a year-on-year increase of 606.76%; After deducting RMB 74.7 billion from the parent company, the net profit attributable to the non parent company increased by 1.66% year-on-year.
Comments:
The scale effect drives the continuous improvement of profitability
The annual performance in 2021 exceeded expectations. The company actively grasped market opportunities and strengthened global market development. The operating revenue and net profit increased quarter by quarter. The operating revenue of Q1-Q4 in the four quarters was 929 million yuan, 1073 million yuan, 1232 million yuan and 1544 million yuan respectively, and the net profit attributable to the parent company was 89 million yuan, 160 million yuan, 252 million yuan and 310 million yuan respectively. The substantial increase in profitability was mainly due to the technical advantages formed by the company’s continuous R & D investment. In 2021, the company’s R & D expenses were 904 million yuan, accounting for 18.92% of revenue, with a year-on-year increase of 56.45%. In 2021, the company’s comprehensive gross profit margin was 40.03%, with a year-on-year increase of 7.14 percentage points, which was mainly affected by factors such as product structure upgrading and sales price adjustment. The net interest rate increased by 13.16 percentage points to 17.33%.
The shipment of multimedia intelligent terminal chips has increased rapidly, and the introduction of new products has accelerated
In 2021, the company shipped 159 million chips in the whole year, including 155 million multimedia intelligent terminal chips, with a revenue of 4.739 billion yuan, a year-on-year increase of 73.44% and a gross profit margin of 40.07%, further consolidating and improving the company’s market position. At the same time, with the help of the existing high-quality customer group and channel advantages, the company’s new products, such as chips applied to on-board infotainment system, WiFi chips, Siasun Robot&Automation Co.Ltd(300024) and other scenes, are expected to become a new growth curve of the company.
Profit forecast and investment suggestions
The global layout of the company’s product lines is accelerated. We expect that the revenue from 2022 to 2024 will be RMB 6.458/84.65/10.809 billion respectively, the net profit attributable to the parent company will be RMB 1.111/14.40/1.836 billion respectively, the EPS will be RMB 2.70/3.50/4.47/share respectively, and the corresponding PE will be 39 / 30 / 24 times respectively. We believe that the company has long-term accumulated technology and product advantages. Referring to the valuation of comparable companies, the company has obvious platform advantages. It is given a “buy” rating of about 55 times PE and a target price of 148.5 yuan corresponding to the 2022 profit forecast.
Risk tips
The development progress of new products is less than expected; Downstream demand fluctuated significantly
