\u3000\u3 Guocheng Mining Co.Ltd(000688) 798 Shanghai Awinic Technology Co.Ltd(688798) )
Performance review
On April 25, 2022, the company released its first quarterly report. In 2022, the Q1 revenue was 595 million yuan, with a year-on-year increase of 20.1%, the net profit attributable to the parent was 57 million yuan, with a year-on-year increase of 73.66%, and the deduction of non net profit was 51 million yuan, with a year-on-year increase of 63.83%. The amount of share based payment withdrawn by Q1 company was 41 million yuan. Excluding the influence of share based payment factors, the net profit attributable to the parent company in Q1 was 99 million yuan, a year-on-year increase of 199%, deducting non net profit of 93 million yuan, a year-on-year increase of 196%, and the performance exceeded expectations.
Business analysis
The gross profit margin increased and the performance in the first quarter exceeded expectations. The gross profit margin of the company in the first quarter reached 46.53%, significantly higher than 32.72% in the same period last year. We learned from the industrial chain that the price of some products of the company was raised in the first quarter. The power chip, audio chip and motor drive chip performed well, the non mobile phone market performed well, the demand of overseas customers increased, and the new product power and sensor products have begun to be shipped. The company continues to improve its product structure and expand new application fields. Since Q1 2021, the gross profit margin has increased quarterly.
The market share continues to increase, and the products are optimized to the medium and high-end: the product cost performance of each line of the company has obvious advantages. Although the demand for mobile phones has been poor since the second half of 2021, the company can still better improve the market share, continuously optimize the product structure to the medium and high-end, and continue to launch new products. In terms of audio chips, the market share of digital audio power amplifiers has been continuously increased, new product development has been increased, such as medium and high-power digital speaker series products, and gradually expand industries, automobiles and other fields, so as to improve the gross profit margin; In terms of power chips, we have developed high-voltage / high-current LDO, high-voltage / high-current buck, AMOLED power, low-power buck, high-power fast charging, charger PMIC, high-precision operational amplifier, high-voltage operational amplifier and related vehicle specification products, and the gross profit margin has been effectively improved; In terms of RF chip, 5g switch, antenna tune, high withstand voltage 80V, high isolation RF SRS switch, LNA and receiver module are developed; The motor drive chip enriches and improves the integrated software and hardware system scheme for the mobile phone, wearable, aiot and automobile markets, and makes a series layout of haptic high, medium and low products.
Investment suggestions:
Considering the share based payment expenses, it is predicted that the company’s profits from 2022 to 2024 will be 416 million yuan (486 million yuan in the original forecast), 637 million yuan (702 million yuan in the original forecast) and 936 million yuan, corresponding to EPS of 251, 384 and 564 yuan respectively, and the current price (132.5 yuan) corresponding to PE of 52.87, 34.54 and 23.5 times respectively, maintaining the “buy” rating.
Risk tips:
Affected by covid-19 epidemic, the demand for mobile phones did not meet expectations, and the upstream wafer factories lacked capacity and increased prices
