\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Performance review
On the evening of April 18, the company released its annual report for 21 years, with annual 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%, and the net profit deducted from non attributable to the parent company was 4.003 billion yuan, a year-on-year increase of 78.3%. The performance was in line with expectations.
Business analysis
High growth of semiconductor design business driven by vehicle / security CIS and tddi: the revenue of semiconductor design business reached 20.38 billion yuan in 21 years, with a year-on-year increase of 18%, which is attributed to the rapid growth of sales scale of vehicle CIS and security CIS, as well as the significant increase of sales scale of the company's tddi products in smartphone brand customers. At the same time, due to the tight relationship between supply and demand of tddi products in the market, its gross profit margin increased by about 37pct.
1. On board CIS: the layout of the whole product line and the advantage of production capacity contribute to the increase of share; In 21 years, the revenue of on-board CIS was about 2.3 billion yuan, with a year-on-year increase of 85%. At present, the product line covers a variety of products such as 1-8m, which can provide vehicle sensing solutions. The company's automobile customers include Europe (well-known automobile enterprises such as BMW, Audi and Mercedes Benz, with a share of about 50% - 60%), the United States (General Motors, Lingke, etc., with a share of about 30%), China's great wall, Geely, SAIC, Weilai, ideal and other mainstream automobile enterprises (with an estimated share of more than 50%), as well as automobile enterprises in South Korea and Japan, which are also accelerating the introduction, with a comprehensive global share of more than 40%. With the capacity constraints of competitors Sony and ansenmey, Howell is expected to account for more than 50% in the future by virtue of its capacity and product advantages.
2. High end layout, driving the growth of security CIS by more than 70%; The popularity of smart city and smart home drives the demand for high-quality CIS products in the field of security monitoring. In 21 years, the company accelerated the layout of medium and high-end security products, and the security CIS revenue increased by 70% year-on-year.
3. Tddi + DDIC is gradually expanding in the first-line mobile phone brands, and the touch and display driven business is expected to double: in 2021, the revenue of tddi products was 1.963 billion yuan, an increase of 164% year-on-year. The products have been mass produced in many first-line mobile phone brand customer schemes, and new R & D teams have been introduced to supplement the oledddic product line. It is expected to start expanding in 2022, and the overall revenue is expected to double.
Gradually build a platform company. The company has in-depth layout in other automotive non CIS product businesses (including vehicle regulation MCU, SerDes interface, power management IC, etc.) and armr technical solutions. We believe that with the gradual construction of business ecology, the company is expected to continue its growth in analog circuit products, emerging markets (medical treatment, IOT, industrial testing, Internet of things, etc.) and other businesses such as traditional security and Internet of things markets.
Investment advice
It is estimated that the net profit attributable to the parent company in 22-24 years is 5.6/70/8.64 billion yuan respectively, the corresponding EPS is 6.39/7.99/9.85 and the corresponding PE is 29 / 23 / 19 times respectively. Continue to maintain the "buy" rating.
Risk tips
Risk of insufficient capacity; exchange-rate risks; The risk of lifting the ban on stocks; Goodwill impairment risk, etc
