\u3000\u3 China Vanke Co.Ltd(000002) 049 Unigroup Guoxin Microelectronics Co.Ltd(002049) )
Quarterly report: 2022. In 2022q1, the company achieved a revenue of 1.341 billion yuan, a year-on-year increase of + 40.84% and a month on month increase of – 13.61%; The net profit attributable to the parent company was 531 million yuan, a year-on-year increase of + 63.91% and a month on month increase of + 6.90%; Deduct the net profit not attributable to the parent company of 508 million yuan, a year-on-year increase of + 64.76% and a month on month increase of + 16.15%.
The performance of 2022q1 company increased significantly year-on-year and maintained growth month on month. Under the condition that special chips contributed to the company’s main performance, this reflected the high vision of China’s special chips. At the same time, as the core card enterprise of China’s special chips, the performance of China microelectronics also further verified the high vision of downstream special equipment. The advance payment of 2022q1 company was 491 million yuan, an increase of 31.02% over the beginning of the period, It shows that China’s microelectronics has increased procurement in response to the rapid growth of demand. In addition, intelligent security chip and general FPGA have also achieved rapid development.
1. China microelectronics: the leader of domestic special chip core card position, and build a domestic special chip platform enterprise in the future. 1) High prospect of special chip industry: benefiting from the large-scale installation of special equipment in China, the continuous improvement of equipment informatization rate and the improvement of localization rate of special chips, it is expected that the compound growth rate of China’s special digital chip market in the 14th five year plan will exceed 40%.
2) high barriers: special chips generally require a development cycle of more than 5 years and have strict market access barriers. China’s Microelectronic special chips have a high market share in many special fields and will usher in high growth with high certainty in the future.
3) performance elasticity: from 2017 to 2021, the compound growth rate of microelectronics revenue was 60.00%, and the compound growth rate of net profit was 73.78%. The performance growth rate was faster than the revenue growth, mainly because the company, as a chip design enterprise, had high performance elasticity under the effect of scale.
4) continuous product expansion: in 2022q1, the R & D cost of the company is 183 million yuan, a year-on-year increase of + 127.33%. The high R & D investment drives the continuous expansion of the company’s product line (such as special SOPC platform products and new analog chips). In the future, the company is expected to build a domestic special chip platform enterprise and benefit from information construction for a long time.
2. Same core micro: product categories continue to grow, including SIM card chip, bank card chip, certificate chip, vehicle chip, NFC chip, intelligent identification chip, etc., which are expected to become the vanguard of national governance digitization.
1) at present, Tongxin micro is one of the main suppliers of SIM card chips, bank card chips and certificate chips in China. Among them, the SIM card chip benefits from the withdrawal of overseas competitors, and the future sales volume is expected to continue to increase. At the same time, the added value of nfc-sim, high-capacity SIM, ESIM and other products continues to increase, and the future performance growth can be expected; The bank card chip benefited from the growth driven by the 10-year card replacement cycle of Bank Of China Limited(601988) card.
2) in the future: the company is expected to become the vanguard of national governance digitization, and has actively deployed many fields of national governance digitization, such as Internet of things, 5g, cloud computing, big data, vehicle control, payment and so on.
3. Ziguang Tongchuang: 29.47% of its subsidiaries are owned by Ziguang Tongchuang, which is a core FPGA supplier in China. At present, China’s FPGA market is mainly occupied by overseas enterprises. The market share of Chinese manufacturers is low, but the growth rate is very fast in recent three years. Ziguang Tongchuang is the core supplier of general FPGA in China. It has achieved mass supply in the field of communication. In 2021, its sales volume in the fields of video image processing, industrial control and consumer market increased rapidly. We believe that with its leading position in China’s general FPGA, its value can not be ignored.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 3.084 billion, 4.203 billion and 5.638 billion respectively, with corresponding valuations of 31x, 23x and 17x, maintaining the “buy” rating.
Risk tip: the debt problem of the group, the application expansion of high-profile special equipment and intelligent security chip is less than expected.
