\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
Gigadevice Semiconductor (Beijing) Inc(603986) released the performance forecast. It is estimated that the company will realize the net profit attributable to the parent company of about 681 million yuan in the first quarter of 2022, with a year-on-year increase of about 126.12%; Deduction of non net profit was about 650 million yuan, with a year-on-year increase of about 134.84%.
Q1 is not light in the off-season, and the performance exceeds market expectations. On a month on month basis, the net profit of Gigadevice Semiconductor (Beijing) Inc(603986) 22q1 is attributable to the parent company qoq-1%, deducting the non net profit qoq-1%, which is basically the same on a month on month basis. Under the impact of Q1 epidemic this year, the company's performance is still excellent. We believe that the main reason is that the company continues to make breakthroughs in the high-end market, the proportion of medium and large capacity nor flash continues to increase, MCU is also accelerating its penetration into the industrial control and vehicle regulation market, the product structure has been greatly upgraded, and the positive layout in the early stage has shown the effect of high-end market.
MCU high-end market continues to break, and the advantages of platform companies are fully displayed. (1) Over the past 21 years, the demand of various MCU market segments such as industry, automobile, household appliances and consumption has remained strong. At present, the proportion of the company's revenue in the industrial field has been in line with that in the consumer field, and the product structure has been continuously optimized. As the demand for medium and high-end MCU in overseas, industrial control and automobile fields continues to improve, the channel prices of some medium and high-end MCU models of the company have begun to rebound recently. (2) The company's latest vehicle specification MCU product is expected to be mass produced around the middle of 2022, mainly for entertainment system. In the future, different categories of MCU will be developed for body, cockpit, power system and other fields. (3) In terms of new product research and development, the company continues to expand the MCU category. In Q4 of 21, the company first launched the Wi Fi MCU chip based on ARM M33 core. At present, the company has four Wi Fi MCU to the market, all of which are gd32w515 series, facing the wireless intelligent IOT market.
Flash product structure continues to be optimized and auto industrial control customers continue to be expanded. (1) The company has continuously optimized the product and customer structure, and has comprehensively turned to high-end applications. The contribution of revenue in industrial and other fields has been increasing. The 2m ~ 2GB vehicle specification nor flash has been paved all over the line, which is mainly used in ADAS, cockpit entertainment, BMS and so on. (2) Due to the continuous strong demand in industries, communications, automobiles and other fields, there is still room for further price increase for medium and large capacity nor flash, and the company is expected to benefit in depth. (3) In addition, the company's 38nm SPI NAND flash has completed aec-q100 vehicle specification certification, covering 1GB ~ 4GB capacity, boosting the company to fully enter the automotive application field.
DRAM self-developed products are accelerated in large quantities, and high-end process chips are expected to be launched this year. The company's self-developed 19nm 4gbddr4 product has been mass produced in June 21. The self-developed product has achieved comprehensive localization from design, streaming, sealing, testing and verification, and is applied to set-top box, TV, monitoring and other markets. At present, the company's planned products include DDR3 / DDR4 / lpddr4, with a capacity of 1 ~ 8GB. The company expects that the high-end process 17nm DDR3 products can contribute to revenue this year.
Active layout of analog chips, key customers continue to make breakthroughs. According to the company's product selection manual, in 2021 Gigadevice Semiconductor (Beijing) Inc(603986) a total of four analog chip product lines were added, including power management unit, motor drive, high-performance power IC and lithium battery management. The company's power management product line has a comprehensive layout and faces major markets such as consumption, industry, medical treatment, communication and energy storage. It is expected to provide a strong driving force for the company's growth in the future.
Investment suggestion: we expect that the net profit attributable to the parent company in 21 / 22 / 23 is expected to reach 23.4/31.2/3.91 billion yuan, and the corresponding current price PE is 38 / 28 / 23 times respectively. As a global storage leader, the company continues to expand the application in the field of automotive industrial control, or has long-term growth and maintains the "recommended" rating.
Risk warning: downstream demand is less than expected; Upstream capacity supply is limited; Intensified market competition
