\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Conclusions and suggestions:
The company released 1q22 results. Affected by the weakness of the mobile phone market and the epidemic, the company's 1q22 revenue decreased by 10% and its net profit decreased by 14%. However, the company expects that the net profit of 2q22 is expected to increase by more than 50% month on month and the growth rate of performance rebounded. At the same time, we expect that vehicle CIS and other products are expected to continue to maintain a high-speed growth trend in 2022, effectively hedge the impact of weak demand in other segments, so as to promote the growth of performance. Considering the disturbance of the epidemic to the semiconductor industry chain, we reduce the annual profit forecast by 9%. It is expected that the company's net profit attributable to the parent company from 2022 to 2023 will be 5.2 billion yuan and 6.7 billion yuan respectively, yoy will increase by 15.6% and 30.1% respectively, and eps5.1% 9 yuan and 7.68 yuan, corresponding to the current PE valuation of 23 times and 18 times respectively. The valuation is at a low point and maintains the "buy" rating
The weak mobile phone market combined with the impact of the epidemic dragged down 1q22 performance: in the first quarter of 2022, the company achieved a revenue of 5.54 billion yuan, and yoy decreased by 10.8%; The net profit was RMB 900 million, yoy decreased by 13.9% and eps1.5% 03 yuan. The company's performance is slightly lower than expected. We believe that the reason why the company's performance is slightly lower than expected is that the weak mobile phone market superimposes the impact of the epidemic, resulting in the recession of the company's 1q22 revenue end.
2q22 growth rate is expected to pick up: the company expects that with the positive adjustment of product structure and the gradual recovery of major market segments, 2q22 net profit is expected to increase by no less than 50% compared with 1q22. The corresponding 2q22 net profit will be no less than 1.34 billion yuan, with a year-on-year growth rate of no less than 11.7%, and the performance growth rate is expected to rebound.
The penetration rate of on-board CIS continues to increase: according to the data of the Ministry of industry and information technology, the penetration rate of new cars with intelligent driving level above L2 in China has reached 20%. With the promotion of the process of new car intellectualization, there is room for a significant improvement in the number and performance of single car CIS. It is estimated that the global market demand for on-board image sensors will be about 220 million in 2022, with a year-on-year increase of nearly 50%. At the same time, with the further maturity of automatic driving, It is expected to reach 550 million in 2025. As the world's second-largest vehicle CIS manufacturer, the company will directly benefit from the improvement of the needs of the industry.
Profit forecast: looking forward to the future, the demand for mobile phone CIS in 2022 will be under certain pressure due to the weakness of the mobile phone industry. However, the competitiveness of the company's products will continue to grow, which is expected to further improve the industry share. At the same time, the demand for CIS in vehicle, security and medical fields will grow rapidly, which will offset the impact of the weakness of mobile phones. In addition, AR / VR has entered a high-speed outbreak period, and the company's cameracubechip, PMIC and touch chip products will continue to be in large quantities Considering the disturbance of the epidemic to the semiconductor industry chain, we lowered the annual profit forecast by 9%. It is expected that the company's net profit attributable to the parent company from 2022 to 2023 will be 5.2 billion yuan and 6.7 billion yuan respectively, yoy will increase by 15.6% and 30.1% respectively, and eps5.1% 9 yuan and 7.68 yuan, corresponding to the current PE valuation of 23 times and 18 times respectively. The valuation is at a low point and maintains the "buy" rating..
Risk warning: the impact of the epidemic exceeded expectations, and the price fluctuation of raw materials exceeded expectations;
