\u3000\u3 China Vanke Co.Ltd(000002) 049 Unigroup Guoxin Microelectronics Co.Ltd(002049) )
Events
The company released the first quarterly report of 2022 on April 25. 1q22 achieved a revenue of 1.34 billion yuan, a year-on-year increase of 41%, a net profit attributable to the parent of 530 million yuan, a year-on-year increase of 64%, deducting a net profit not attributable to the parent of 510 million yuan, a year-on-year increase of 65%, which was in line with the overall expectation.
Business analysis
The profitability continued to improve, and the gross profit margin of 1q22 company was 64%. In 2021, the company’s overall gross profit margin was 59.5%, with a year-on-year increase of 7.2pct, 1q22 gross profit margin was 64%, with a month on month increase of 5.4pct; The net interest rate in 21 years was 36.6%, with a year-on-year increase of 11.9pct, and the net interest rate of 1q22 was 39.8%, with a month on month increase of 7.6pct. The company’s R & D expenses were 180 million yuan, a year-on-year increase of 127%, accounting for 13.6% of the operating revenue, an increase from 11.8% in 2021.
The demand for special integrated circuits exploded and the business grew rapidly. The company announced that the revenue in 2021 was 5.34 billion yuan, a year-on-year increase of 63.4%; The net profit attributable to the parent company was 1.95 billion yuan, a year-on-year increase of 142%. In 2021, special integrated circuit products achieved a revenue of 3.36 billion yuan, a year-on-year increase of 101%, accounting for 63% of the company’s revenue and 77% of the gross profit margin. The subsidiary Shenzhen guomicroelectronics achieved a net profit of 1.83 billion yuan, a year-on-year increase of 109%, contributing 94% of the company’s profit in 2021; The revenue of intelligent security chip products was 1.66 billion yuan, with a year-on-year increase of 22%, accounting for 31% of the company’s revenue and 31.2% of the gross profit margin. The net profit of the subsidiary same core microelectronics was 55 million yuan, with a year-on-year increase of 49.5%. Ziguang Tongchuang, a joint-stock company, achieved a revenue of 780 million yuan, a year-on-year increase of 148%, and a net profit of 40.96 million yuan, turning losses into profits year-on-year, exceeding expectations.
The company has made breakthroughs in new products in many fields, and the relevant market share has continued to increase. 1) Special chip field: microprocessor and supporting chipset products continue to be launched, and the application field continues to expand; 2X nanometer FPGA series products have gradually become mainstream products and occupy an important market position, and the development of a new generation of higher performance products is also progressing smoothly; In the field of analog products, the market share of the company’s power chips, power modules, power monitoring and other products continues to expand. 2) Smart security chip: the overseas market share of SIM card and bank IC card continues to increase. Stable supply of ID cards, breakthroughs in many projects in the social security card market, and a substantial increase in shipments. In addition, the company has accelerated the creation of safer, more convenient and more efficient Internet of things and Internet of vehicles application scenarios, and the company’s vehicle specification level security chip scheme has been commercially available in batches in multiple vehicle enterprises. 3) General FPGA field: high-end FPGA is mass produced, small and medium-sized FPGA models are continuously improved, and shipments in communication, industrial control, consumption and other fields are growing rapidly.
Profit adjustment and investment suggestions
The company benefited from the sustained prosperity of the special IC industry and the rapid recovery of the profit margin of intelligent security chips. It is expected that the company’s revenue will be RMB 7.6/101/13 billion from 2022 to 24, an increase of 7% / 8% from 22 to 23, and the net profit attributable to the parent company is predicted to be RMB 2.8/39/5.3 billion, a year-on-year increase of 42% / 39% / 36%, corresponding to PE of 35 / 25 / 18, maintaining the “buy” rating.
Risk tips
The demand for special integrated circuits is less than expected, the gross profit margin of special integrated circuits is at downward risk, and the asset restructuring risk of indirect shareholders.
