\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Event:
The company released its 2021 annual report, realizing an annual 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 deducted from non parent company was 4.003 billion yuan, with a year-on-year increase of 78.30%. From the perspective of Q4 single quarter, the operating revenue of Q4 single quarter was 5.789 billion yuan, a year-on-year decrease of 1.13% and a month on month decrease of 1.31%; The net profit attributable to the parent company was 958 million yuan, a year-on-year decrease of 2.23% and a month on month decrease of 24.86%.
The revenue of automobile, security CIS and tddi increased significantly year-on-year, and the profitability improved significantly: the company’s annual revenue increased by 21.59% year-on-year, and the driving force of revenue growth mainly came from: (1) the demand for image sensors in automobile, security and other fields increased greatly, and the company’s market share continued to improve. The revenue of security automobile CIS in 2021 was $481 million and $361 million respectively, with a year-on-year increase of more than 60% and 80% respectively. (2) With the launch of the company’s new tddi products and the further expansion of customers, the company’s revenue from related products grew rapidly. In 2021, the company’s tddi revenue was $306 million, an increase of more than 160% year-on-year. In terms of profitability, the gross profit margin and net profit margin of the company were 34.49% and 18.86% respectively, with a year-on-year increase of + 4.58pct and + 5.33pct respectively. The profitability of the company increased significantly in 2021. Among them, the gross profit margin of CIS image sensor of the company in 2021 was 33.64%, with a year-on-year increase of + 2.27pct; The gross profit margin of tddi was 60.90%, with a year-on-year increase of + 36.87pct.
Rapid growth of automotive semiconductors: the CIS chip of the company’s automobile has developed rapidly. With the gradual popularization of applications such as Internet of vehicles, intelligent vehicles and automatic driving, the automobile scheme needs more and higher pixel image sensors to realize more accurate road condition judgment, signal recognition and emergency judgment, which drives the great increase in the demand of the company’s automotive CIS chip. The company has successfully launched a number of new products ranging from 3 million pixels to 8 million pixels. In addition to CIS, the company has also laid out ar HUD for vehicles based on LCOS scheme, and extended the capabilities of original MCU, power, analog and other chips to the automotive field. Automotive semiconductor is expected to open the company’s second growth curve in the future.
Mobile phone CIS continues to improve and display driven IC products continue to upgrade: in the field of mobile phone CIS, the company has launched different models of products such as 50 million pixels, 60 million pixels and 200 million pixels after ov64b, and has also achieved continuous breakthrough of technology nodes for technologies with different pixel sizes, achieving a performance balance of small size, high resolution and low energy consumption. Recently, the company announced a major pixel technology breakthrough – in the realization of 0.56 μ M ultra-small pixel size while providing high quantum efficiency (QE), excellent four phase detection (QPD) autofocus technology and low power consumption. In the field of tddi, the company has achieved full product coverage, from HD720P to fhd1080p, and the display frame rate has been fully covered from 60Hz, 90hz, 120Hz to 144hz, and the market share has increased rapidly. In addition, the company’s OLED DDIC products have been verified in China’s head screen factory and will be applied to the product scheme of smartphone customers in 2022.
Investment suggestion: we expect the company’s revenue from 2022 to 2024 to be 31.912 billion yuan, 40.437 billion yuan and 50.323 billion yuan respectively, and the net profit attributable to the parent company to be 5.493 billion yuan, 7.587 billion yuan and 9.188 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: downstream demand attenuation risk, market competition risk, product development less than expected, customer expansion less than expected.
