Unigroup Guoxin Microelectronics Co.Ltd(002049) ( Unigroup Guoxin Microelectronics Co.Ltd(002049) ) event: on April 20, 2022, the company issued the annual report of 2021. During the reporting period, the company achieved an operating revenue of 5.342 billion yuan (+ 63.35%); The net profit attributable to the parent company was 1.954 billion yuan (+ 142.28%); Deduct the net profit not attributable to the parent company of RMB 1.796 billion (+ 158.10%); The basic EPS is 3.22 yuan / share, and the weighted average roe is 31.94%.
The company’s performance in 2021 exceeded expectations, and the business of special integrated circuits and intelligent security chips developed well. In 2021, the company achieved a revenue of 5.342 billion yuan, a year-on-year increase of 63.35%; The net profit attributable to the parent company was 1.954 billion yuan, a year-on-year increase of 142.28%, both reaching a record high. 1) Quarter by quarter, the company achieved a revenue of 1.553 billion yuan in 2021q4, a year-on-year increase of 63.43%; 2) By product, the revenue of special integrated circuit products was 3.364 billion yuan (+ 101.08%), that of intelligent security chip products was 1.664 billion yuan (+ 22.11%), and that of crystal components products was 271 million yuan (+ 37.60%); 3) By channel, the direct sales revenue was 5.127 billion yuan (+ 67.13%), accounting for 95.98% of the total revenue. 4) By region, the domestic revenue was 5.007 billion yuan (+ 62.77%), and the overseas revenue was 335 million yuan (+ 72.60%).
The change of product structure superimposed the scale effect, and the profitability of the company was greatly improved. In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 59.48%, with a year-on-year increase of 7.15 percentage points. On the one hand, the proportion of special products with high gross profit continues to rise. In 2021, the company’s special integrated circuit product revenue accounted for 62.98% of the total revenue, an increase of 11.82 percentage points over the previous year. On the other hand, the production and sales of integrated circuit business increased significantly, and the business scale increased rapidly, which brought scale effect and further promoted the rapid increase of the company’s gross profit margin. In terms of net interest rate, the net interest rate in 2021 was 37.14%, an increase of 12.63 percentage points year-on-year. During the reporting period, the company took into account the development speed and quality, the sales expense rate decreased by 1.24 percentage points year-on-year, and the profitability was further improved.
The company continues to increase R & D investment, and there is a broad space for business development in the future. In 2021, focusing on market demand, the company invested 866 million yuan in R & D during the reporting period (year-on-year + 43.42%), and continued to tackle key problems in chip core technology. 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. At present, the “new high-end safety series chip R & D and industrialization project”, “vehicle controller chip R & D and industrialization project” and other projects have been fully promoted and implemented, the relevant businesses will obtain new growth points, and the company’s core competitiveness will be continuously enhanced.
The demand of special integrated circuit industry continues to expand, and product R & D and brand effect lay the foundation for development. Affected by the strong demand for global semiconductor products, the integrated circuit industry as a whole continues to maintain a stable growth trend. On the one hand, the company actively coordinated resources and made every effort to improve production capacity. In 2021, the output of integrated circuit products increased significantly, with a year-on-year increase of 27.12%, ensuring order delivery and realizing high-speed growth of performance. On the other hand, the company strengthened the research on the core technology of special integrated circuits, constantly enriched its product categories and seized market opportunities; Improve product quality and highlight brand effect. 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 nano FPGA series products occupy an important market position; Special SOPC platform products are widely used, and system level chips and peripheral supporting products have become one of the important sources of income; In the fields of digital power supply, high-performance clock, high-speed and high-precision ADC / DAC, protection circuit, isolation chip, sensor chip and so on, some models of products have been sold, which is expected to become a new growth point of the company during the 14th Five Year Plan period.
The company continues to improve its product layout, consolidate its position in the industry, and promote the continuous growth of intelligent security chip business through multiple application scenarios. In terms of Telecom SIM card, the company provides rich product selection for the global telecom SIM card chip market, and the overseas market share continues to increase. In terms of financial payment security products, the company further increased the market share of Bank Of China Limited(601988) IC card chips, actively expanded overseas markets and achieved batch issuance in many countries and regions. In the social security card market, the company actively promoted the work of the third generation social security card, made breakthroughs in many projects, and the delivery volume increased significantly. Financial terminal security chips are commercially available on a large scale in overseas markets. Chip has been widely used in the pilot financial market and led the new direction of digital payment solutions. Implement multiple projects in the field of intelligent three meters and intelligent wearable; The company’s vehicle specification level security chip scheme is commercially available in batches in multiple vehicle enterprises. In the future, in terms of Telecom cards, nfc-sim, high-capacity SIM and ESIM will promote the continuous improvement of product added value, and the overseas market will become a new growth point; In terms of bank cards, Bank Of China Limited(601988) card 10-year card replacement cycle is coming, supporting the continuous growth of bank card chip industry; Automobile, industry, Internet of things and other application scenarios will continue to bring new market opportunities.
Profit forecast and investment suggestions: To sum up, we raised our previous judgment on the company. It is estimated that the net profit attributable to the parent company in 22-24 years will be 3.037 billion yuan, 4.010 billion yuan and 4.975 billion yuan respectively, corresponding to 35, 26 and 21 times of PE, maintaining the “buy” rating.
Risk tips: raw material price fluctuation risk, market demand fluctuation risk, Sino US trade friction uncertainty risk
