\u3000\u3 Guocheng Mining Co.Ltd(000688) 798 Shanghai Awinic Technology Co.Ltd(688798) )
Event: Shanghai Awinic Technology Co.Ltd(688798) released the first quarterly report of 2022. From January to March 2022, the company realized an operating revenue of 559 million yuan, a year-on-year increase of 20.11%; The net profit attributable to the parent company was 58 million yuan, a year-on-year increase of 73.66%.
Product and application structure optimization, smooth price transmission, driving the company's high-quality growth. The company has adjusted the production capacity and application structure of non chip products in time, and the gross profit ratio of non chip products has been improved to a certain extent; At the same time, the company's products continue to iterate, improve prices and performance, and effectively transmit the price pressure of upstream wafers. In 2022, Q1 gross profit margin reached 46.53%, up 3.16% month on month and 13.81% year-on-year. Subsequently, with the further release of the company's cooperation capacity, the company's revenue will be further improved, and the gross profit margin will remain at a high level.
Pay attention to R & D investment, and increase the company's period expenses in a short time with high share based payment fees. In terms of expenses, due to the increase of personnel, salary and accrued share based payment, the expenses of the company increased significantly during 2022q1. Among them, the R & D cost was 148 million yuan, a year-on-year increase of 97.41%, and the R & D rate was 24.9%; The sales expense was 279115 million yuan, a year-on-year increase of 70.22%, and the sales rate was 4.7%; The management fee was 379604 million yuan, a year-on-year increase of 67.04%, and the management rate was 6.4%; The financial expense was -614800 yuan, a year-on-year decrease of 116.12% and the financial rate was - 0.1%, mainly due to the increase of interest income in bank accounts. During the reporting period, the amount of share based payment accrued by the company was 41760475 million yuan. After excluding the influence of share based payment factors, the net profit attributable to shareholders of Listed Companies in the first quarter of 2022 was 992698 million yuan, an increase of 199.76% over the same period of last year, and the net profit excluding recurring profit and loss attributable to shareholders of listed companies was 934347 million yuan, an increase of 196.24% over the same period of last year.
Broaden the process platform to ensure long-term development. The company has built its own reliability laboratory and testing center, which can carry out wafer testing and mass production testing, and is equipped with a thousand level dust-free room. It has passed the certification of customers such as glory, oppo and vivo, and has begun to supply in batches. The company's forward-looking layout of 12 inch wafer process, the first company and TSMC and the first batch of 12 inch 90nmbcd wafer process in cooperation with Huahong, significantly alleviated the problem of wafer capacity supply and reduced chip manufacturing costs. The company's capacity guarantee and product strength form a virtuous circle with each other, which effectively ensures the company's layout and exploration of higher-end analog IC, and provides good support and guarantee for the company's sustained performance growth.
Investment advice and profit forecast
As a simulation platform company, we believe that with the further improvement of the company's cooperative wafer production capacity, the company will achieve rapid growth of revenue. At the same time, with the continuous optimization of application and product structure, the company's gross profit margin is expected to remain at a high level. It is estimated that the revenue will reach 3.686 billion yuan and 5.681 billion yuan in 22 and 23 years, and the net profit attributable to the parent company will reach 408 million yuan and 800 million yuan, corresponding to pe5.3 billion yuan 90, 27.50x, maintaining the "buy" rating.
Risk tips
The development of downstream applications such as consumer electronics is significantly lower than expected; Upstream wafer capacity supply is limited; The promotion of new product development did not meet expectations
