\u3000\u3 Guocheng Mining Co.Ltd(000688) 099 Amlogic (Shanghai) Co.Ltd(688099) )
Event: the company released its annual report for 2021. In 2021, it achieved a revenue of 4.78 billion yuan (YoY + 75%) and a net profit attributable to the parent company of 810 million yuan (YoY + 607%). At the same time, the company issued a forecast for the first quarter of 2022, which is expected to achieve a revenue of 1.48 billion yuan (YoY + 59%) and a net profit attributable to the parent company of 270 million yuan (YoY + 202%).
The revenue and profit of 2021 reached a new high, and the performance of 2022q1 continued to exceed expectations. In 2021, the company achieved a revenue of 4.78 billion yuan (YoY + 75%) and a net profit attributable to the parent company of 810 million yuan (YoY + 607%), of which Q4 achieved a revenue of 1.54 billion yuan (YoY + 58.6%) and a net profit attributable to the parent company of 310 million yuan (YoY + 141.8%). Gross profit margin 40% (YoY + 7.1pp), net profit margin 17% (YoY + 13.1pp), sales expense ratio 1.8% (YoY – 0.9pp), management expense ratio 2.2% (YoY – 1.2pp), R & D expense ratio 18.9% (YoY – 2.2pp), financial expense ratio 0.4% (YoY – 0.6pp), annual chip shipment 160 million (YoY + 59%).
The shipments of S and AI series chips increased rapidly, and the market position of traditional products was stable. The company’s s S-Series SOC chip scheme is for well-known customers at home and abroad, such as Zte Corporation(000063) , Skyworth, Xiaomi, Alibaba, Google and Amazon. Relevant terminal products are widely used in operators’ equipment in China, North America, Europe, Latin America, Asia Pacific and Africa. The company’s products have obvious advantages in performance and stability in the Chinese operator market, and have been widely recognized in the overseas market. At present, s series products have been certified by many streaming media systems such as Google and Amazon and many international mainstream CAS certification, supporting AV1 decoding. AI series SOC chip adopts the industry-leading 12NM process and supports the highest 5tops neural network processor. It has rich and diverse application scenarios and continues to expand ecological users. It has been widely used in the terminal products of Xiaomi, TCL, Alibaba, Google, Amazon, SONOS, zoom, picture and other enterprises.
The introduction of new automotive electronics products is accelerated, and Wi Fi Bluetooth chips contribute to revenue. With the help of existing high-quality customers and channel advantages, the company accelerates the introduction of new product chips in vehicle infotainment system, Siasun Robot&Automation Co.Ltd(300024) and other scenes. V series chips adopt 12NM process technology, built-in neural network processor and support AV1 decoding. They are used in vehicle information and entertainment system, and the sales volume has increased steadily. In addition, the company continued to accelerate the research and development of wireless chips. Since the first mass production of 20q3, the company has steadily promoted the commercialization process and continuously carried out technical optimization and upgrading. In August 21, the company launched the self-developed dual band high-speed data transmission wi-fi5 + BT5 supporting high-throughput video transmission 2 single chip, which has been successfully mass produced and sold on a large scale. In the future, it will actively expand the research and development of next-generation technology and launch new products in due time.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 2.68 yuan, 3.46 yuan and 4.41 yuan respectively. The net profit attributable to the parent company will maintain a compound growth rate of 30.8% in the next three years and maintain the “buy” rating.
Risk tips: overseas shipments are less than expected, R & D progress is less than expected, exchange gain and loss fluctuation risk, etc.
