\u3000\u3 China Vanke Co.Ltd(000002) 049 Unigroup Guoxin Microelectronics Co.Ltd(002049) )
Event: Unigroup Guoxin Microelectronics Co.Ltd(002049) april 26 released the first quarterly report of 2022. In the first quarter of 2022, the company achieved revenue of 1.341 billion yuan (YoY + 40.83%, qoq-13.61%), net profit attributable to parent company of 531 million yuan (YoY + 63.91%, QoQ + 6.9%), and net profit attributable to parent company of 508 million yuan (YoY + 64.76%, QoQ + 16.15%). In addition, the company released its annual report for 2021 on April 21. In 2021, the company achieved a revenue of 5.342 billion yuan (YoY + 63.35%), a net profit attributable to the parent company of 1.954 billion yuan (YoY + 142.28%), and a net profit attributable to the parent company of 1.796 billion yuan (YoY + 158.1%).
Coordinated development of multiple product lines and steady improvement of profitability. From 2021 to Q1 2022, the company’s integrated circuit product structure and business layout were continuously optimized. In addition, due to the strong demand in the downstream of the industrial chain, all industrial companies spared no effort to ensure order delivery, realized the significant growth of operating revenue and net profit, and steadily improved their profitability. In 2021, the company achieved a gross profit margin of 59.48%, with a year-on-year increase of 7.15pct. In 2022q1, the company continued to improve, and in 22q1, the company achieved a gross profit margin of 63.89% (YoY + 9.9pct, QoQ + 5.38pct). In terms of products, in 2021, the company’s intelligent security chip achieved a revenue of 1.664 billion yuan (YoY + 22.11%), a gross profit margin of 31.17%, and a significant year-on-year improvement of 6.34pct, mainly due to the further improvement of the company’s product layout and the active expansion of overseas markets; The revenue of the company’s special integrated circuits was 3.364 billion yuan (YoY + 101.08%), and the gross profit margin was 77.20% (yoy-2.44pct). The rapid growth of revenue was mainly due to the continuous high momentum of the special IC industry, and the gross profit margin was stable at a high level; The revenue of crystal components was 271 million yuan (YoY + 37.6%), and the gross profit margin was 20.82% (YoY + 1.07pct).
Special integrated circuits continue to have a high vision and become the leading enterprise of microelectronics and special IC in China. China microelectronics is a leading enterprise in the subdivision field of special integrated circuits in China. In addition, Ziguang Tongchuang, a joint-stock subsidiary, is a leading FPGA supplier in China. China’s microelectronics technology is in a leading position in China. At present, it has formed seven series of products, including microprocessor, programmable device, memory, network and interface, simulator and ASIC / SOPC, with nearly 500 varieties. The core products have been widely used in relevant fields. In 2021, the downstream demand for special integrated circuits broke out, and the overall capacity was under pressure. The company actively coordinated resources to ensure order delivery, and achieved rapid performance growth. At the same time, focusing on the market demand, the company continued to tackle the core technology of chips, continuously iterated hundreds of series products, continuously enriched power management chips and expanded market share; 2X nano FPGA series products have gradually become mainstream products, and the development of a new generation of SOPC chips is smooth. Looking forward to the future, China’s special equipment has entered a period of large-scale construction. As the basis of special equipment and information equipment, the demand for localization is increasingly strong. The dual factors will jointly drive the rapid growth of microelectronics in China.
In addition, in the field of general products, Ziguang Tongchuang, a joint-stock subsidiary of the company, achieved a revenue of 782 million yuan (YoY + 232.89%) in 2021. In 2021, the company successfully realized mass production and shipment of large-scale FPGA, further improved the model pedigree of small and medium-sized FPGA products, doubled the total shipment volume of the company’s products, and achieved comprehensive and rapid growth in shipment volume and revenue in the fields of video image processing, industrial control and consumer market. The research and development of the company’s first generation SOPC series products is progressing smoothly, and the second generation SOPC for the fields of artificial intelligence and machine vision has also started research and development, which is expected to lead the wave of domestic FPGA substitution in the future.
The intelligent security chip business continues to grow, and the convertible bond raised investment project focuses on high-end security chips and vehicle controller chips. As a leading enterprise in China’s intelligent security chips, Tongxin micro has the highest market share in China and the world in terms of its SIM card chip business, and takes the lead in China in terms of financial IC card chip, new generation traffic card chip, ID card reader and POS se chip. In 2021, the company’s second-generation resident ID card, electronic travel document and other license products were stably supplied, and new application projects related to identity recognition security products were actively promoted. In terms of Telecom SIM card, the company has provided rich product selection for the global telecom SIM card chip market through complete product layout, and the overseas market share has continued 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. At the same time, the company actively expands the application scenarios of Internet of things and Internet of vehicles, and the vehicle specification level security chip scheme is commercially available in batches in multiple vehicle enterprises. In addition, the company successfully completed the issuance of convertible bonds in 2021, raising 1.5 billion yuan for “new high-end safety series chip R & D and industrialization project”, “vehicle controller chip R & D and industrialization project” and supplementing working capital, alleviating the liquidity pressure of listed companies, helping to create new business growth points and promoting the sustainable development of the company.
Investment suggestion: it is estimated that the net profit attributable to the parent company in the year of 22 / 23 / 24 will reach 3 / 4129 / 5535 billion yuan, and the corresponding current price PE is 33 / 24 / 18 times respectively. The company is a leading special integrated circuit platform enterprise in China. In the next few years, it will deeply benefit from the large volume of special integrated circuits and the growth of domestic substitution demand. It will be covered for the first time and given a “recommended” rating.
Risk warning: the risk of demand fluctuation in the downstream market; Risk of upstream supply fluctuation; The risk of intensified market competition; The risk that the R & D Progress of new products is less than expected; Risks of attracting talents and maintaining innovation ability.
