\u3000\u3 China Vanke Co.Ltd(000002) 049 Unigroup Guoxin Microelectronics Co.Ltd(002049) )
Event overview
In 2021, the company realized an operating revenue of 53421151 million yuan; The net profit attributable to the shareholders of the listed company was 1953785800 yuan.
Analysis and judgment:
The products continue to iterate and the company’s performance continues to grow
During the reporting period, focusing on the market demand, the company continued to tackle key problems in chip core technology, fully promoted the implementation of various R & D projects and enhanced its core competitiveness. In terms of special integrated circuits, hundreds of series products continue to iterate, power management chips continue to be enriched, and the development of a new generation of SOPC chips is smooth; In terms of intelligent security chips, large capacity and multi application se security chips are designed and finalized, and vehicle security chips are shipped in batches. In addition, the company has also made positive progress in the research and development of miniaturized and high-frequency crystal oscillator products and epitaxial superjunction MOSFET products for many times. During the reporting period, the company realized an operating revenue of 53421151 million yuan, an increase of 63.35% over the same period of last year; The net profit attributable to the shareholders of the listed company was 1953785800 yuan, an increase of 142.28% over the same period of the previous year. Among them, the integrated circuit business achieved an operating revenue of 5028389300 yuan, accounting for 94.13% of the company’s operating revenue, and the electronic components business achieved an operating revenue of 2708286 million yuan, accounting for 5.07% of the company’s operating revenue.
The leading position of intelligent security chip is consolidated, and the demand and supply are comprehensively optimized
During the reporting period, the company’s second-generation resident ID card, electronic travel document and other license products were stably supplied, and new application projects related to identity recognition security products were actively promoted. In terms of Telecom SIM card, the company has provided rich product selection for the global telecom SIM card chip market through complete product layout, and the overseas market share has continued to increase. In addition, the company maintains a leading edge in ESIM, nfc-sim and other market segments. Among them, the company supports customers to win the bid for the centralized purchase project of China Mobile nfc-sim card products. The products support the needs of 5g, digital currency, digital identity and other innovative applications, representing the development trend of SIM card products. Sim competition pattern is optimized. Due to the lack of production capacity of global semiconductors, major SIM card chip manufacturers such as Samsung and Infineon began to withdraw from this field one after another. Benefiting from this, the company’s overseas business shipments of SIM cards reached hundreds of millions. As the current e-sim leading enterprise in China, the company is expected to benefit from the improvement of e-sim card penetration in mobile phones in the future. According to several overseas media, Apple may launch e-sim mobile phones in some regional markets next year. We expect that Chinese Android manufacturers will follow up Apple’s move and launch e-sim phones in overseas markets. As the area of ESIM chip is much larger than that of traditional SIM chip, the unit price and gross profit margin of e-sim leading enterprises are much better than that of SIM card chip business.
In terms of new business, on July 14, 2021, the company’s convertible corporate bonds were listed and traded in Shenzhen Stock Exchange, raising a total of 1.5 billion yuan to deepen the layout of high-end safety chips and vehicle regulations, of which 450 million yuan was used for vehicle VCU R & D and industrialization projects, and the products were mainly used for vehicle control decisions, including power and chassis. At present, the company’s R & D is progressing smoothly and the team size continues to expand. R & D teams have been established in Chengdu and Beijing, and the team size continues to expand.
Downstream demand continues to be strong, and there is no need to worry too much about supply pressure
During the reporting period, the downstream demand for special integrated circuits broke out and the overall production capacity was under pressure. The company actively coordinated resources to ensure order delivery and achieved rapid growth in performance. The continuous improvement of the company’s product quality level and prominent brand effect have laid a solid foundation for the company’s long-term development.
Capacity side: in the manufacturing part, the company’s OEM manufacturers are relatively scattered, but there is no single dependence. At the same time, the working environment of the factory is super clean room, and the epidemic has little impact on the OEM. At present, the OEM in the epidemic area is only closed, and the production has not been stopped.
In the packaging part, the proportion of plastic packaging products of the company is limited. At the same time, most factories are similar to Fab factories, which are closed but do not shut down, which has little impact on the whole; Most of the company’s products are strip and ceramic packaging products, and the production capacity is not in Jiangsu, Zhejiang and Shanghai, which is also slightly affected.
In terms of testing, because the company has its own production capacity, there will be delivery problems only in the testing in Shanghai, but due to the relatively limited number, it will have little impact on the company. Transportation will be partially affected, but it is generally controllable, and there is no delivery problem at present. Digital products: the company’s special microprocessor and supporting chipset products continue to be launched, and the application field continues to expand; With the rapid development of special FPGA products, 2x nanometer FPGA series products have gradually become mainstream products and occupy an important market position, and the development of a new generation of higher performance products is also progressing smoothly; With advanced technology and rich varieties, special memory products are the most widely covered product series in China’s special application field, maintaining a huge market leading advantage. In terms of network bus and interface products, the company continues to maintain a leading market share, which is an important product direction of the company. With the wide application of special SOPC platform products, system level chips and peripheral supporting products have become an important source of revenue for the company.
Analog products: the market share of the company’s power chips, power modules, power monitoring and other products continues to expand. In addition, the company continues to develop digital power supply, high-performance clock, high-speed and high-precision ADC / DAC, protection circuit, isolation chip, sensor chip and other fields. Some models of products have been sold and are expected to become a new growth point of the company during the 14th Five Year Plan period.
Investment advice
Considering the current demand and macro trend, as well as the company’s production capacity, we reduced the annual operating revenue of the company from 2022 to 2023 by 9.433 billion yuan and 15.181 billion yuan to 8.581 billion yuan and 12.484 billion yuan, and the operating revenue is expected to be 17.85 billion yuan in 2024. Increase the company’s net profit attributable to the parent company from 3.171 billion yuan to 3.284 billion yuan in 2022, increase the company’s EPS from 5.23 yuan to 5.41 yuan in 2022, decrease the company’s net profit attributable to the parent company from 5.464 billion yuan to 4.573 billion yuan in 2023, and decrease the company’s EPS from 9 yuan to 7.54 yuan in 2023; It is estimated that the net profit attributable to the parent company in 2024 will be 6.836 billion yuan and EPS will be 11.26 yuan, corresponding to the closing price of 168 yuan / share on April 21, 2022, and PE will be 32x, 23x and 15x respectively, maintaining the “buy” rating.
Risk tips
The demand for special products is less than expected, the demand for intelligent security chips is less than expected, and there are macro and capacity risks.
