\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 27 Sino Wealth Electronic Ltd(300327) )
The downstream demand is highly prosperous and the performance continues to be excellent
On April 19, 2022, the company released the first quarterly report of 2022. Benefiting from the high prosperity of downstream demand, the operating revenue of 2022q1 company was RMB 464 million, with a year-on-year increase of 51.4% and a month on month increase of 15.91%. The net profit deducted from non parent company of 2022q1 company was RMB 110 million, with a year-on-year increase of 87.9% and a month on month increase of 6.91%. Considering the high prosperity of downstream demand and the high-speed penetration period of superimposed lithium battery management chip and AMOLED display driver, we maintain the profit forecast unchanged. It is expected that the net profit attributable to the parent company in 20222024 will be RMB 556 / 729 / 951 million, EPS will be RMB 1.79/2.34/3.06, and the current share price corresponds to 30.4/23.2/17.7 times of PE, maintaining the “buy” rating.
Actively respond to covid-19 epidemic, and promote production capacity and sales normally
In terms of wafers, affected by the covid-19 epidemic in Suzhou, the company’s wafer suppliers and ship chips were shut down for 11 days in February 2022, which had a slight impact on the company’s wafer output in the first and second quarters, but the impact on the company’s annual revenue is expected to be less than 3%. In terms of sales, due to concerns about the possible impact of covid-19 epidemic in Shanghai, some customers took delivery of orders in the first week of April in advance before the end of March. The sales realized in advance accounted for less than 5% in the first quarter. Further, as the company will further strengthen its strategic cooperation with upstream OEM partners in 2021, the company expects to achieve quarterly growth in production capacity in 2022.
Focus on medium and high-end industrial control tracks, and promote category expansion with R & D investment
2022q1’s revenue of industrial control chips accounts for about 80% and that of consumer electronics chips accounts for about 20%, which shows that the company is a chip manufacturer focusing on medium and high-end industrial control circuits. In terms of R & D investment, 2022q1’s R & D investment reached 81.325 million yuan, with a year-on-year increase of 35.1%. Since 2021q1, the year-on-year growth rate of the company’s R & D expenses has continued to decline, indicating that the company is gradually developing from the development period of new products to the harvest period of category expansion. In terms of R & D direction, the company mainly focuses on the development of new products of existing industrial control, automotive electronic MCU chips, industrial Internet of things chips and OLED display driver chips.
Risk warning: there is a risk of continuous tightening of upstream capacity; Covid-19 epidemic situation has great uncertainty; There is uncertainty in the research and development progress of new products.
