\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 82 Maxscend Microelectronics Company Limited(300782) )
Maxscend Microelectronics Company Limited(300782) 2022q1 performance exceeded expectations Maxscend Microelectronics Company Limited(300782) 22q1 achieved an operating revenue of 1.33 billion yuan, a year-on-year increase of 12.43%; The net profit attributable to the parent company was 441466 million yuan, a year-on-year decrease of 5-10%; The net profit deducted from non parent company was 443468 million yuan, a year-on-year decrease of 8-13% and a slight increase month on month. Subject to the weakness of the mobile phone industry, the market is pessimistic about the performance expectation of the company in 22q1. However, Maxscend Microelectronics Company Limited(300782) in 22q1, while maintaining steady income growth, the operating performance exceeded the market expectation.
Maxscend Microelectronics Company Limited(300782) 2021 performance meets expectations. According to the company’s performance express in 2021, Maxscend Microelectronics Company Limited(300782) 2021 achieved a revenue of 4.64 billion yuan, a year-on-year increase of 66%; The net profit attributable to the parent company was 2.14 billion yuan, a year-on-year increase of 99%; Net profit deducted from non parent company was 1.94 billion yuan, with a year-on-year increase of 89%. In 2021q4, the company realized a net profit attributable to the parent of RMB 612 million and deducted a net profit not attributable to the parent of RMB 436 million.
Maxscend Microelectronics Company Limited(300782) is the leader in China’s RF front-end industry. We divide the company’s business line into three dimensions:
(1) first growth curve – RF discrete devices: RF switch (conduction switch and antenna switch), RF low noise amplifier, RF filter and RF power amplifier;
(2) second growth curve – diversity receiving module: diffem (diversity receiving module, integrated RF switch and filter), ldifem (diversity receiving module, integrated RF low noise amplifier, RF switch and filter), lfem (diversity receiving module, integrated RF switch, low noise amplifier and filter), lnabank (diversity receiving module, integrated multiple RF low noise amplifiers and RF switch functions);
(3) the third growth curve – main transmitter module: l-pamif (main transmitter module, integrated RF power amplifier, RF switch, filter, low noise amplifier), WiFi FEM (WiFi connection module, integrated WiFi RF power amplifier, RF switch, low noise amplifier and other combinations).
Maxscend Microelectronics Company Limited(300782) three elements of performance growth: intelligent machine shipment, share and single machine value. Due to the high base caused by over stocking of smart machine supply chain after Huawei’s sanctions in 2020, the revenue and profit of Maxscend Microelectronics Company Limited(300782) 22q1 has not been significantly adjusted under the pressure of year-on-year growth of supply chain shipments from 2021h2 to 2022h1. Looking to the future, we believe that the core driving force of Maxscend Microelectronics Company Limited(300782) growth is still the increase in the value of single units from US $1 (discrete) to US $7 (discrete + module), and the increase in the share of domestic substitutes from discrete devices to filters, PA, 5g receiver module (diversity module), 4G receiver module (diversity module), 5g transmitter module (main module) and 4G transmitter module (main module).
The first and second growth curves are subject to the weak shipment of smart machines, but the leading position of RF receiver module in the second growth curve cannot be shaken. Large quantities of large customers are waiting for in 2022: (1) lfem: the cost-effective scheme relying on IPD filter, and the leading position of Maxscend Microelectronics Company Limited(300782) industry is stable. (2) Diffem: at present, the rapid volume of OEM SAW filter has supported a large number of shipments from 2021 to 2022. In the future, the self built SAW filter IDM production line will support the further rapid volume of diffem. Considering that the competitive manufacturers of this product are mainly overseas enterprises, we take a positive view of the future shipments. (3) Lnabank: core customers have made important breakthroughs, and a complete solution at the receiving end has been formed. (4) The self built production line of SAW filter is expected to actively ensure the shipment of division + lnabank and l-division receiver modules in the future.
The third growth curve transmitter module will become the strongest tone of China’s transmitter module: (1) Maxscend Microelectronics Company Limited(300782) at present, l-pamif, the main transmitter module product applied to 5gnr band, has been successfully launched, in which GaAs process is adopted for PA and IPD process is adopted for filter. L-pamif, a transceiver module product suitable for 5gnr band, has made a breakthrough and has been mass produced and shipped to brand customers. We look positively at the growth trend of Maxscend Microelectronics Company Limited(300782) 5g module (l-pamif + lfem) and transmitter module in the future; (2) Looking forward to the future, the high value integrated duplexer, filter and PA 4G transmitter module pamid are also actively developing the layout. We will pay close attention to the progress of this product. The RF transmitter module will open up a vast space for Maxscend Microelectronics Company Limited(300782) and the RF front-end platform company is beginning to grow.
The grant of restricted stock incentive plan has been completed. On February 22, 2022, the company issued the announcement on granting restricted shares to the incentive objects of the restricted stock incentive plan in 2022 for the first time. Of which:
Equity grant date (class II restricted stock): February 22, 2022;
Number of restricted shares (class II restricted shares) granted: 214920 shares;
First grant price of restricted stock (class II restricted stock): 173.57 yuan / share;
The total number of incentive objects granted for the first time in this equity incentive plan is 62;
According to the following table, the assessment conditions of equity incentive are operating income: 4.6-5.8 billion yuan in 2022, 5.6-6.9 billion yuan in 2023, 6.7-8.4 billion yuan in 2024 and 8-10 billion yuan in 2025.
Profit forecast, valuation and rating: according to the performance express of Maxscend Microelectronics Company Limited(300782) 2021, the income of Maxscend Microelectronics Company Limited(300782) 2021 is 4.64 billion yuan and the net profit attributable to the parent company is adjusted to 2.14 billion yuan; Considering the weakness of the smart machine industry, we adjusted the forecast of Maxscend Microelectronics Company Limited(300782) 20222023 net profit attributable to parent company to RMB 2.48 billion and RMB 3.01 billion, compared with the original forecast of RMB 3.17 billion and RMB 4.11 billion, down 21.76% and 26.73% respectively. At present, the market value of RMB 65.8 billion corresponds to the PE of 20212023, which is 31 / 27 / 22x respectively.
The company’s share price fell sharply. As the first growth curve and the second growth curve are subject to the influence of smart machines, but the company’s saw filter IDM production line is progressing smoothly and the third growth curve has changed positively (the future sales of transmitter modules can be expected), we have a positive view on the sales of Maxscend Microelectronics Company Limited(300782) transmitter modules in 2022 and the upward trend of the company’s discrete devices and receiver modules after the recovery of smart machines. We are optimistic about the layout of Maxscend Microelectronics Company Limited(300782) in China’s RF front-end industry for a long time and maintain the “buy” rating.
Risk warning: the progress of key technologies is less than expected; Downstream domestic substitution demand is less than expected.
