\u3000\u3 Shengda Resources Co.Ltd(000603) 501 Will Semiconductor Co.Ltd.Shanghai(603501) )
Event: on April 26, the company released the first quarter report of 2022, realizing a revenue of 5.54 billion yuan, a year-on-year increase of – 10.8% and a month on month increase of – 4.3%; The net profit attributable to the parent company was 900 million yuan, with a year-on-year increase of – 13.9% and a month on month increase of – 6.4%; Deduct the net profit of non parent company of RMB 900 million, with a year-on-year increase of – 4.5% and a month on month increase of – 3.5%. The corresponding gross profit margin was 35.3%, year-on-year + 2.9pct, month on month -1.2pct; The net interest rate was 16.1%, with a year-on-year ratio of -1.3pct and a month on month ratio of -0.6pct; The net interest rate after deducting non-profit was 16.3%, with a year-on-year increase of + 1.1pct, which was basically the same month on month.
The performance of 22q1 is under pressure, the adverse factors are alleviated, and the prospect of 22q2 is optimistic. Affected by the decline of shipments in the smart phone market and the impact of a new round of epidemic, the revenue and profit of 22q1 company were under pressure, and the inventory increased by 19.2% month on month. The market is generally worried about the sustainability of external disturbance and whether the downstream demand can recover smoothly. On the one hand, we see that with the increase of the revenue proportion of vehicle CIS, tddi and other high gross profit products, the company’s product structure continues to be optimized, and 22q1 still improves its profitability under the pressure of mobile phone business; On the other hand, the impact of external disturbance is gradually alleviated, and the main downstream market segments are gradually recovering. The company expects that the net profit of 22q2 is expected to increase by no less than 50%, so it can have more confidence in the future.
Fast and large-scale on-board, touch display creates new growth points. In the field of on-board CIS, the company has launched a variety of models from VGA to 8m that can meet different application scenarios inside and outside the cabin, with an annual revenue of about 2.3 billion yuan in 21 years, a year-on-year increase of + 85%. In terms of customers, it covers major automobile brands in Europe and America. At the same time, it introduces a large number of Chinese traditional automobile brands and new power schemes for car manufacturing, which has rapidly increased the market share and realized the sustained and rapid growth of revenue. In terms of tddi, the company imported front-line brand customers from rear decoration to ensure revenue growth. Under the background of continuous tight production capacity, the gross profit margin also maintained a high level. In addition, it continued to launch new products with more competitive advantages to maintain competitive advantages. It is expected to launch oledddic products for mass production and application in 22 years, further enrich the touch product matrix and add growth highlights outside CIS business.
Multi product line platform layout with clear long-term growth logic. Following CIS and tddi business, the company has gradually made efforts in the field of discrete devices, power management, RF chips and other analog devices, with a revenue of 1.45 billion yuan in 21 years. The short-term on-board CIS, tddi and other products contribute to high-income growth, and the medium and long-term simulators gradually take over the growth momentum in large quantities. Coupled with the external collaborative empowerment of Weihao Chuangxin, the orderly connection of multiple product lines is realized, and the future growth logic is extremely clear.
Investment suggestion: it is estimated that the net profit attributable to the parent company in 202224 will be 5.9/75/9.2 billion yuan, corresponding to 20 / 16 / 13 times of PE valuation, maintaining the “buy” rating.
Risk warning event: the terminal demand is less than expected, the sales volume of new energy vehicles is less than expected, and the information used in the research report is not updated in time.
