\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Event:
The company released its annual report for 2021, and achieved an operating revenue of 24.104 billion yuan, a year-on-year increase of 21.59%; The net profit attributable to the parent company was 4.476 billion yuan, a year-on-year increase of 65.41%; The net profit attributable to the parent company after non deduction was 4.003 billion yuan, a year-on-year increase of 78.30%.
Comments:
Semiconductor design business grew significantly, and automotive / security CIS performed well
The annual performance in 2021 was basically in line with expectations. The semiconductor design business achieved a revenue of 20.38 billion yuan, a year-on-year increase of 18.02%, and the semiconductor distribution business achieved a revenue of 3.66 billion yuan, a year-on-year increase of 47.28%. Among the three major sectors of semiconductor design, CMOS image sensor products achieved a revenue of 16.264 billion yuan, with a year-on-year increase of 10.66%, mainly due to the significant growth of the company’s image sensor solutions in the field of automobile and security. CMOS products achieved a revenue of about 2.396 billion yuan and 3.080 billion yuan in the field of automobile and security respectively. The company’s CMOS products are expected to benefit from the opportunities brought by intelligent automobile and intelligent security for a long time.
Increase R & D investment, consolidate advantages, smooth implementation of fund-raising projects, and help long-term development
The company attaches great importance to technology R & D. in 2021, the R & D investment of the company in semiconductor design business was 2.62 billion yuan, with a year-on-year increase of 24.79%, increasing R & D investment, providing sufficient guarantee for the company’s product upgrading and new product R & D, and further consolidating the company’s advantages in the field of semiconductor IC design. In 2021, the company issued convertible bonds to raise 2.44 billion yuan for projects such as “research and development and upgrading of CMOS image sensors” and “test and expansion of high-performance image sensor chips”. The smooth implementation of the fund-raising projects is conducive to the company to grasp the development opportunities of CIS industry, fully benefit from the high growth of CIS demand brought by the high boom in the downstream, and further improve its market share in cis field.
Profit forecast and investment suggestions
The recent epidemic has repeatedly impacted the supply of upstream and downstream parts of the industry. We expect the company’s operating revenue to be 31.927/40.620 billion yuan (original value of 34.40/42.881 billion yuan) and net profit to be 5.660/7.107 billion yuan (original value of 5.796/7.670 billion yuan) respectively in 22-23 years. At the same time, the 24-year profit forecast is 50.708 billion yuan, net profit to be 8.905 billion yuan and EPS to be 6.45/8.11/10.16 yuan / share respectively, The corresponding closing price of PE on April 18, 2022 is 28 / 22 / 18 times respectively. Considering the obvious competitive advantage of the company in the field of CIS, vehicle and security CIS have become the driving force of the company’s performance, the company is given about 40 times PE corresponding to the profit forecast of 2022, and the corresponding target price is 258.00 yuan, which is raised to the “buy” rating.
Risk tips
Downstream demand is less than expected, product iteration and upgrading is less than expected, and downstream customer import is less than expected.
