\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 27 Sino Wealth Electronic Ltd(300327) )
Event: the company issued the first quarter report of 2022; In 2022q1, the company realized an operating revenue of 464 million yuan, a year-on-year increase of 51.44%; The net profit attributable to the parent company was 128 million yuan, a year-on-year increase of 89.97%; The non net profit deducted was 110 million yuan, a year-on-year increase of 87.86%.
The off-season of the company in the first quarter of 2022 was not light, and maintained high-speed growth year-on-year. At the same time, the company’s product portfolio continued to optimize, driving the gross profit margin to increase slightly compared with the same period. Among them, MCU is expected to continuously improve its market share in the field of home appliances and explore the overseas home appliance market; In the automotive field, we will pay close attention to the research and development of body application chips, which is expected to achieve a breakthrough of 0-1; Lithium battery management chips are deeply cultivated in many large brands in China, and are in the growth period of expanding the share of domestic alternative markets; AMOLED display driver has achieved a breakthrough in the front loading market. We are optimistic that the company will accelerate the introduction of domestic substitutes, further expand new products and drive the rapid growth of business.
MCU is out of stock overseas, the demand for domestic substitution is strong, and the structure continues to be optimized. The company’s MCU is mainly an industrial control product with high reliability. In 2021, driven by the shortage of MCU, foreign IDM leaders focused on high-end fields such as automotive electronics. The domestic substitution of MCU in China’s white appliance market achieved rapid development, and the company’s MCU business also achieved year-on-year steady growth. At the same time, the company’s product structure has been continuously optimized, including realizing the mass production breakthrough in the field of variable frequency household appliances in 21 years, and taking the lead in mass production of 32-bit MCU in large clients of small household appliances; In addition, in terms of automobiles, the company continues to invest in the research and development of products in the field of automotive electronics by using the accumulation of relevant technologies. At present, it is stepping up the research and development of body application products, which is expected to achieve a zero one breakthrough in relevant fields.
The continuous penetration of lithium battery management chip brand customers + new customer expansion drive growth. In the field of lithium battery management chips, the company has a wide range of products and maintains the leading position of Chinese manufacturers. In 2021, the company’s lithium battery management chip has been mass produced by many Chinese brand manufacturers in the application of mobile phones and TWS headphones, and has been recognized and adopted by brand manufacturers in the application of notebook computers;, In addition, benefiting from the implementation of the new national standard electric bicycle and the development of Shanxi Guoxin Energy Corporation Limited(600617) energy storage market in China, the performance of lithium battery management chip for power application continues to maintain a high growth rate. We are optimistic that the company will grasp the opportunity of domestic substitution and is expected to drive the rapid growth of business.
AMOLED display driver chips are developing rapidly and are expected to be further introduced into the front loading market. In 2021, the company will
AMOLED display driver chip has made rapid development. New FHD + mobile phone screen products have been mass produced and adopted by many panel factories. At the same time, wearable products have entered the brand market, and the sales have increased several times. At the same time, the company plans to launch new products of front loading brand market specifications in the middle of the year, which is expected to achieve a breakthrough in the front loading market. In terms of downstream demand, the penetration rate of AMOLED panel in the mobile phone market continues to improve, and trendforce expects the penetration rate to rise to 46% in 2022. Overall, AMOLED display driver chips may still be in short supply in 2022. We are optimistic about amoeld display driver chips, seize the opportunity of shortage in the industry and further expand the market space.
Profit forecast and investment suggestions: the domestic substitution of various businesses of the company continues to advance. We are optimistic that the competitive advantage of the company’s products in various application fields will drive the rapid growth of business. We expect the net profit of the company from 2022 to 2024 to be 533 / 711 / 931 million yuan, maintaining the “buy” rating of the company.
Risk warning: the resumption of work and production is not as expected; Deterioration of competitive environment; The expansion of new applications and new products is less than expected; The supplier’s production expansion is less than expected
