\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Event: on April 18, the company released its 2021 annual report, realizing a revenue of 24.1 billion yuan, a year-on-year increase of + 21.6%; The net profit attributable to the parent company was 4.48 billion yuan, a year-on-year increase of + 65.4%; Deduct the net profit not attributable to the parent company of RMB 4.0 billion, a year-on-year increase of +78.3%; The gross profit margin was 34.5%, year-on-year + 4.6pct; The net interest rate was 18.9%, with a year-on-year increase of + 5.3pct. Among them, the revenue of semiconductor design business was 20.38 billion yuan, a year-on-year increase of + 18.0%; The revenue of semiconductor distribution business was 3.66 billion yuan, a year-on-year increase of + 47.3%.
The actual performance is in line with the forecast, and the annual performance has achieved high growth. The actual performance of the company is in line with the previous forecast range, and the corresponding revenue of 21q4 is 5.79 billion yuan, with a year-on-year increase of – 1.1% and a month on month increase of – 1.3%; The net profit attributable to the parent company was 960 million yuan, with a year-on-year increase of – 2.2% and a month on month increase of – 24.9%; Deduct the net profit not attributable to the parent company of RMB 940 million, a year-on-year increase of + 41.9% and a month on month decrease of – 15.1%; The gross profit margin was 36.5%, year-on-year + 7.9pct, month on month + 1.0pct; The net interest rate was 16.7%, year-on-year + 0.02pct, month on month -4.9pct. The main reasons for the high growth of annual performance are as follows: 1) grasp the opportunity of simultaneous rise of volume and price of on-board CIS; 2) Medium and high-end security CIS products have achieved rapid growth; 3) Tddi has been mass produced in many first-line mobile phone brand customer schemes, bringing new revenue and profit growth points.
On board CIS is fast and large-scale, with diversified product layout. With the continuous penetration of automobile intelligence, automobile has become the fastest-growing application field of CIS in the world. Frost & Sullivan predicts that the CAGR of on-board CIS will reach 29.7% from 2021 to 23. In the field of on-board CIS, the company has launched a variety of models from VGA to 8m that can meet different application scenarios inside and outside the cabin, with an annual revenue of about 2.3 billion yuan in 21 years, a year-on-year increase of + 85%; In terms of customers, it covers major automobile brands in Europe and the United States. At the same time, it introduces a large number of Chinese traditional automobile brands and new power schemes for car manufacturing, and the market share increases rapidly. In addition, the company has achieved diversified layout through the layout of ASIC, LCOS, MCU and other on-board products. With the rapid growth of on-board CIS and the continuous volume of non CIS on-board products, the company has strong growth momentum in the on-board field.
Touch display business creates new growth points and benefits from platform layout for a long time. In 21 years, tddi’s revenue reached 1.96 billion yuan, a year-on-year increase of + 164%, and the beneficiary industries had tight supply and demand, the gross profit margin was at a high level, and also made a significant contribution to the profit side. Oledddic products are newly launched. It is expected to be mass produced and applied in 2022, further enrich the touch display product matrix, and add growth highlights outside CIS business. In the long run, the company has formed a platform layout of CIS, tddi and pan simulator devices. With the gradual expansion of Pan simulator devices such as discrete devices, power management and RF devices, and the external collaborative empowerment of Weihao Chuangxin, the company has the momentum of sustainable growth, and the future growth logic is extremely clear.
Investment suggestion: it was previously estimated that the revenue in 202223 would be 34.8/41.8 billion yuan and the net profit attributable to the parent company would be 6 / 8.1 billion yuan. Considering the weak demand of the mobile phone industry, the previous profit forecast was appropriately adjusted. It is estimated that the revenue in 202224 would be 32.2/41.2/50.3 billion yuan and the net profit attributable to the parent company would be 5.9/75/92 billion yuan, corresponding to 27 / 21 / 17 times of PE valuation, maintaining the “buy” rating.
Risk warning event: the terminal demand is less than expected, the sales volume of new energy vehicles is less than expected, and the information used in the research report is not updated in time.
