\u3000\u3 Guocheng Mining Co.Ltd(000688) 099 Amlogic (Shanghai) Co.Ltd(688099) )
Event: on April 15, the company released its annual report for 2021, realizing an operating revenue of 4.777 billion yuan, a year-on-year increase of + 74.46%; The net profit attributable to the parent company was 811 million yuan, a year-on-year increase of + 606.76%; The net profit deducted from non parent company was 716 million yuan, a year-on-year increase of + 742.66%.
Accelerate the development of global markets, and the annual performance growth exceeded expectations. The company’s main business is the R & D, design and sales of SOC chips and wireless connection chips for multimedia intelligent terminals. Chip products are widely used in smart set-top boxes, smart TVs, AI audio and video system terminals, wireless connection chips and automotive electronics. According to the company’s annual report, the company achieved 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 811 million yuan, a year-on-year increase of + 606.76%. Reasons for the rapid growth: first, the demand of the global consumer electronics industry continued to grow, the company accelerated the expansion of the global market, and the shipments of S-Series chips and AI series chips increased rapidly; Second, with the help of existing high-quality customer groups and channel advantages, accelerate the introduction of new products, such as chips applied to vehicle infotainment systems, Siasun Robot&Automation Co.Ltd(300024) and other scenes; Third, the shipments of Wi Fi Bluetooth chips increased significantly, contributing to the operating revenue.
Leading the domestic SOC chip of multimedia intelligent terminal, which continues to be favored by key customers. With the rapid development of the Internet and the continuous process of intellectualization, the fields of network set-top boxes and smart TVs have entered a period of rapid growth. According to the report of the Research Institute growthinights, the global Android TV box market will be worth $3.263 billion in 2020, which is expected to reach $15.63 billion by the end of 2026, with a CAGR of 24.8% from 2021 to 2026. According to the data of strategy analytics, the global smart TV ownership will reach 1.1 billion households by 2026, accounting for 51%. The company is deeply engaged in the field of SOC chip of multimedia intelligent terminal, has 11 core technologies such as full format video and audio decoding processing technology, and adopts advanced 12 nanometer technology manufacturing process in the industry, with outstanding scientific and technological innovation ability. Related products S-Series and T-series SOC chips are widely used by well-known manufacturers such as Zte Corporation(000063) , Skyworth, Xiaomi, Alibaba, Google and Amazon. Terminal products have been widely used in China Mobile, China United Network Communications Limited(600050) , China Telecom Corporation Limited(601728) and other Chinese operator equipment, as well as many overseas operator equipment. In addition, the company has also developed AI audio and video chip product line, which is applied to smart home, smart office and other scenes. With the help of the existing high-quality customer group and channel advantages, we are optimistic about the further expansion of the application field of the company’s AI series SOC chip.
Wireless connection chip + automotive electronics has a rapid growth and strong growth, and the future can be expected. According to the data forecast of China Research Institute of Puhua industry, the scale of China’s Wi Fi chip market will exceed 30 billion yuan in 2025. Gartner estimates that global Wi Fi chip shipments will reach 4.9 billion in 2022. Wi Fi is one of the main connection modes of the Internet of things, which is expected to achieve rapid growth with the rapid development of the Internet of things. During the reporting period, the company continued to accelerate the research and development of Wi Fi Bluetooth chip, continuously carried out technical optimization and upgrading, and launched the self-developed dual band high-speed data transmission wi-fi5 + BT5 supporting high-throughput video transmission in August 2 single chip. At present, the company has actively invested in the research and development of next-generation technology and will launch new products in due time. In recent years, the market scale of vehicle display screen has maintained a growth trend. According to the data of China Commercial Industry Research Institute, the global shipment of vehicle display screen will be about 127 million in 2020 and is expected to increase to 238 million in 2030. The company launched vehicle specification SOC chips such as V series for on-board information and entertainment system, and the sales volume increased steadily during the reporting period. Relying on its advantages in the field of intelligent SOC chips, the company continues to increase investment and launch new products. In the future, it is expected to embrace the wave of automobile networking and intelligence and become a new growth pole of the company’s performance.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 6.592 billion yuan, 8.438 billion yuan and 10.463 billion yuan respectively, and the net profit attributable to the parent company will be 1.12 billion yuan, 1.428 billion yuan and 1.763 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: the risk that the R & D progress does not meet the expectation and the risk that the market development is not as expected.
