\u3000\u3000 Wuxi Chipown Micro-Electronics Limited(688508) (688508)
Events
Wuxi Chipown Micro-Electronics Limited(688508) electronic release of annual performance forecast for 2021: it is expected that the net profit attributable to the parent company will be about 190 million yuan in 2021, with a year-on-year increase of about 90.50%, and the net profit attributable to the parent company after deduction of non-profit will be about 140 million yuan, with a year-on-year increase of about 73.63%.
Key investment points
The performance forecast for 2021 is in line with expectations and continues to explore white power, fast charging and industrial markets
According to the calculation of the company’s annual performance forecast in 2021, the company’s net profit attributable to the parent company in Q4 in 2021 is expected to be 61 million yuan, an increase of 50.6% year-on-year and 3.4% month on month. The rapid growth of the company’s performance mainly benefits from its active response to the problem of capacity shortage and continuous development of new customers and markets. In the household appliance market, the company’s market share in the small household appliance market continues to increase, the benchmark customers in the large household appliance market develop smoothly, and the products continue to grow in large quantities; In terms of standard power supply market, the company has developed rapidly in the field of fast charging, entered more industry benchmark customers, and the sales volume continues to increase; In terms of industrial control power market, downstream applications continued to make breakthroughs, and the company’s product sales increased steadily.
Deep ploughing power management chip track, equity incentive shows confidence
At present, the company has more than 770 models of products in production, including strong technical strength and market competitiveness in subdivided fields such as AC-DC and HV driver. In terms of downstream customers, with outstanding product performance, continuous technological innovation and rapid service response, the company has developed into an advantageous supplier of power management chips in China’s household appliances and standard power industry. Well-known downstream end customers mainly include Midea, Gree, Skyworth, Hisense, Zhejiang Supor Co.Ltd(002032) , Jiuyang, lake, Xiaomi, Lenovo, oaks, tp link Zte Corporation(000063) and other head benchmarking enterprises.
On December 2, 2021, the company issued an announcement on granting restricted shares to incentive objects for the first time. A total of 1.04 million restricted shares were granted, and the share payment fee was about 40 million yuan. The number of equity incentive granted by the company was 114, including core technicians and 109 key employees of the company. We believe that the company’s move is expected to further bind key members, improve the cohesion of employees and the stability of the team, so as to improve the company’s operating efficiency, enhance the company’s internal value, and highlight the company’s confidence in long-term sustainable development in the future.
Profit forecast
It is predicted that the company’s revenue from 2021 to 2023 will be 745 million yuan, 1102 million yuan and 1475 million yuan respectively, and EPS will be 168 million yuan, 232 million yuan and 2.99 yuan respectively. The corresponding PE of the current stock price will be 65, 47 and 36 times respectively, giving the “recommended” investment rating.
Risk tips
Downstream industry prosperity downside risk, new product R & D progress less than expected risk, industry competition risk, overseas policy change risk, etc.
