\u3000\u3 Guocheng Mining Co.Ltd(000688) 798 Shanghai Awinic Technology Co.Ltd(688798) )
Key points of the report:
Event: Shanghai Awinic Technology Co.Ltd(688798) released the annual report of 2021. In 2021, the company achieved an operating revenue of 2.327 billion yuan, an increase of 61.86% year-on-year; The net profit attributable to the parent company was 288 million yuan, a year-on-year increase of 183.56%.
The growth of multiple products has promoted the rapid improvement of the company’s performance. In 2021, on the basis of consolidating its own advantages, the company actively carried out market expansion and layout, and its products gradually penetrated from consumer electronics to aiot, industry, automobile and other fields. The product categories were constantly enriched, and more than 200 new product models were added. It has made a breakthrough in the automotive field and has been applied to Byd Company Limited(002594) , Hyundai, Wuling, Geely, Chery and other terminal vehicles through module manufacturers. At the same time, more products have been imported into many international well-known brands such as Samsung, Facebook, Amazon and Google to become strategic partners. In terms of products, the revenue of audio power amplifier, power management, RF front-end and motor drive chip was 997 million yuan, 803 million yuan, 184 million yuan and 285 million yuan respectively, with a year-on-year increase of 33.77%, 75.82%, 81.12% and 124.86% respectively. The sales volume of all products maintained a high growth rate. At the same time, the company continued to optimize the product structure, and the comprehensive gross profit margin increased to 40.41%, up 7.84% year-on-year
Pay attention to product research and development, increase team investment, and match the cost growth with the performance growth. In 2021, the company incurred 127 million yuan of sales expenses, with a year-on-year increase of 103.68% and a sales rate of 5.5%, mainly due to the increase of sales revenue, the increase of salesperson and salary and the increase of expenses due to the implementation of equity incentive plan; The management fee was 131 million yuan, a year-on-year increase of 96.31% and the management rate was 5.6%, mainly due to the growth of the company’s sales revenue, the increase of managers and salaries and the increase of expenses for the implementation of equity incentive plan; The financial expense was RMB – 04 million, a year-on-year decrease of 117.49% and the financial rate was – 0.2%, mainly due to the decline of exchange rate, the decrease of exchange loss and the increase of interest income in the raised capital account in 2021; The R & D expenditure was 417 million yuan, which exceeded the annual R & D expenditure of the company over the years, with a year-on-year increase of 102.91% and a R & D rate of 17.9%, mainly due to the continuous increase of R & D investment, the increase of R & D personnel and their salaries, the increase of consumables and process costs used in R & D, and the increase of expenses for the implementation of equity incentive plan.
Broaden the process platform to ensure long-term development. The company built its own reliability laboratory and testing center. In 2021, the company built its own reliability laboratory and testing center, with a total area of 3000 square meters, which can carry out wafer testing, mass production testing and equipped with a thousand level dust-free room. During the reporting period, the testing center has passed the certification of customers such as glory, oppo and vivo and began to supply in batches. The company’s forward-looking layout of 12 inch wafer process, the first company and TSMC and the first batch of 12 inch 90nmbcd wafer process in cooperation with Huahong, significantly alleviated the problem of wafer capacity supply and reduced chip manufacturing costs. The company’s capacity guarantee and product strength form a virtuous circle with each other, which effectively ensures the company’s layout and exploration of higher-end analog IC, and provides good support and guarantee for the company’s sustained performance growth.
Investment suggestions and profit forecast we predict that the company is expected to achieve revenue of 3.686 billion yuan and 5.681 billion yuan, net profit of 408 million yuan and 800 million yuan in 22-23 years, corresponding to pe5.8 billion yuan 08, 29.63x, maintaining the “buy” rating.
Risk tips
The development of downstream applications such as consumer electronics is significantly lower than expected; Upstream wafer capacity supply is limited; The promotion of new product development did not meet expectations
