\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 61 Sg Micro Corp(300661) )
Event overview
The company released the annual report of 2021 and the performance report of the first quarter of 2022. In 2021, the company achieved a revenue of 2.238 billion yuan, a year-on-year increase of 87.07%; The net profit attributable to the shareholders of the parent company was 699 million yuan, a year-on-year increase of 142.21%. In the first quarter of 2022, the company achieved a revenue of 775 million yuan, a year-on-year increase of 96.81%, and the net profit attributable to the shareholders of the parent company was 260 million yuan, a year-on-year increase of 244.98%.
The off-season trend continues, with nearly 3800 products available for sale
Since Q4 in 2021, due to the gradual weakness of downstream demand and the high inventory level of the supply chain, the overall prosperity of semiconductors has declined. However, based on the layout of multiple products and fields, the off-season of Q4 in 2021 is not light. The single quarter revenue of Q4 in 2021 was 703 million yuan, an increase of 13.39% over Q3, and the net profit attributable to parent company was 248 million yuan, an increase of 29.84% over Q3. In 2022, Q1 company continued the trend of off-season, with revenue of 775 million yuan in a single quarter, an increase of 10.24% over Q4 in 2021, and net profit attributable to parent company of 260 million yuan, an increase of 4.84% over Q4 in 2021. Both revenue and net profit attributable to parent company reached a record high in a single quarter. According to the company’s annual report, in 2021, the company’s products fully covered 25 categories of products in the two fields of signal chain and power management, and nearly 3800 products were available for sale. From 2017 to 2020, the company launched 200300 new products every year, which continuously increased the number of products available for sale and provided long-term and stable support for the growth of the company’s performance. In 2021, the number of new products increased to more than 500, with an increase compared with previous years, Widely covering all product categories. According to the types of products, in 2021, the company’s power management products achieved a revenue of 1.529 billion yuan (an increase of 80.31% compared with 848 million yuan in 2020), accounting for 68.32% of the overall revenue, and the signal chain products achieved a revenue of 709 million yuan (an increase of 103.15% compared with 349 million yuan in 2020), accounting for 31.68% of the overall revenue.
Pay attention to R & D investment and further strengthen supply chain integration
Since its establishment, the company has been focusing on R & D investment, which has increased year by year, and has developed and accumulated a series of core technologies and products with international advanced level. By the end of 2021, the company had a total of 858 employees, an increase of 50% over the same period last year, including 602 R & D personnel, accounting for 70.16% of the total number of employees, an increase of 59.26% over the same period last year. The R & D investment in 2021 was 378 million yuan, accounting for 16.89% of the operating revenue, an increase of 82.55% compared with 2020. The development of the company’s new products gradually presents the trend of multi-function, high-end and complexity. More new products adopt more advanced manufacturing processes and packaging forms, such as a new generation of high-voltage BCD process with lower on resistance, 90nm analog and mixed signal process, SOI process with excellent isolation performance, WLCSP packaging, etc. The company further strengthened the integration of supply chain. In 2021, the wafer foundry was mainly TSMC, and the packaging and testing service providers were mainly Jcet Group Co.Ltd(600584) , Tongfu Microelectronics Co.Ltd(002156) and Chengdu Yuxin. At the same time, the company has also begun to cooperate with Semiconductor Manufacturing International Corporation(688981) , Tianshui Huatian and other well-known suppliers in the industry, actively strengthen the resource integration with suppliers, expand production capacity, and provide a more perfect supply chain system for the long-term development of the company.
Investment advice
Based on the wide range of downstream application fields of the company, the accelerated import and substitution of power management and signal chain products, the demand in many fields is still strong, and the order visibility is relatively high, we adjust the previous forecast, and expect the company’s revenue to be 3.4 billion yuan, 5 billion yuan and 6.5 billion yuan respectively from 2022 to 2024 (the previous forecast data in 2022 and 2023 were 2.65 billion yuan and 3.45 billion yuan respectively); It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.076 billion yuan, 1.529 billion yuan and 1.912 billion yuan respectively (the predicted data of 2022 and 2023 were 803 million yuan and 987 million yuan respectively), and the corresponding EPS will be 4.55 yuan, 6.47 yuan and 8.09 yuan respectively (the predicted EPS of 2022 and 2023 were 3.43 yuan and 4.52 yuan respectively). The PE corresponding to the closing price of 280 yuan on April 22, 2022 will be 61.48 times, 43.26 times and 34.6 times respectively. In view of the leading position of the company in China’s analog ic field, under the general trend of import substitution, the company has strengthened cooperation with Chinese mainstream brand manufacturers to gradually realize the localization of Analog IC products, and has sufficient market space to maintain the buy rating.
Risk tips
Macroeconomic development is lower than expected, end consumer demand is lower than expected, new product and new customer expansion is lower than expected, capacity expansion is lower than expected, etc.
