\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
In 2021, the revenue increased by nearly 90%, with a significant increase of 300%.
1) 2021: the revenue was 8.51 billion yuan, a year-on-year increase of + 89%, the net profit attributable to the parent company was 2.337 billion yuan, a year-on-year increase of + 165%, and the net profit not attributable to the parent company was 2.224 billion yuan, a year-on-year increase of + 300%, the gross profit margin was 46.56%, a year-on-year increase of + 9.48 PCT, and the net profit margin was 27.46%, a year-on-year increase of + 7.88. Siliwei suffered a loss of 26.78 million yuan in 2021, with a provision for goodwill impairment of 156 million yuan and 128 million yuan in 2020. In addition, there is no compensation of RMB 2.6 billion in 2020. The R & D investment was 940 million, with a year-on-year increase of + 74%, and the R & D expense rate was 11%, with a year-on-year increase of -0.98 PCT.
2) 21q4: the revenue was 2.180 billion yuan, up + 65% year on year and – 19% month on month; The net profit attributable to the parent company was 689 million yuan, up + 231% year on year and – 20% month on month; Net profit deducted from non parent company was 660 million yuan, up + 3376% year on year and – 20% month on month; The gross profit margin was 53.01%, year-on-year + 23.52pct, month on month + 3.21pct, and the net profit margin was 31.58%, year-on-year + 15.88pct, month on month -0.49pct.
Structural shortage continued, Q1 revenue was strong and growing month on month. Meanwhile, the company released the results of the first quarter of 2021, realizing a revenue of 2.23 billion yuan, a year-on-year increase of + 39% and a month on month increase of + 2%; The net profit attributable to the parent company was 686 million yuan, with a year-on-year increase of + 128% and a month on month increase of – 0.4%, an increase of 5 million yuan compared with the 681 million yuan previously announced; Deduct the net profit not attributable to the parent company of 655 million yuan, a year-on-year increase of + 137%. – 1% month on month, an increase of 5 million yuan compared with 650 million yuan announced in advance; The gross profit rate was -73pct, with a year-on-year ratio of -49.3; The net interest rate was 30.76%, with a year-on-year increase of + 11.98pct and a month on month increase of -0.82pct. The annual advance payment in 2021 was 34.25 million, and Q1 increased rapidly to 427 million. The continuous high growth of performance is due to the strong demand for the company’s memory, MCU and other products and the continuous structural shortage.
Memory: nor continues to make efforts, and self-developed DRAM contributes revenue and future prospects. The annual revenue of memory was 5.451 billion yuan, a year-on-year increase of + 66%, the sales volume was 3.288 billion pieces, a year-on-year increase of + 22%, the unit price was 1.7 yuan, a year-on-year increase of + 36%, and the gross profit margin was 39.71%, a year-on-year increase of + 4.92pct. The company is a leading memory design company in mainland China. Its products are as follows:
1) norflash: it provides 512kb-2gb full range of products, with 55nm full line mass production (promoting 45nm). At the end of 2021, 55nm shipments accounted for 40% +. The customer base and coverage of medium and large capacity continue to expand, and automobile and industry have become the fastest growing fields. Benefiting from the growth of consumer electronics such as smart phones, TWS headphones and wearable devices, as well as automotive electronics, 5g and the Internet of things, the global norflash market was US $3.1 billion in 2021. In 2020, the company’s market share was the third in the world, second only to Huabang and wanghong in Taiwan. The company’s serialnorflash market share reached 17.8%.
2) slcnand: achieve mass production at 38 / 24nm, complete 1gb-8gb mainstream capacity coverage, provide two series of traditional parallel interface and new SPI interface, and achieve good growth in PC, server, vehicle and wearable fields. The market size of slcnand was about USD 2137 million in 2021 and USD 2363 million in 2022. At present, except for Gigadevice Semiconductor (Beijing) Inc(603986) 6, slcnand suppliers are mainly manufacturers from Taiwan, China, of which Huabang and wanghong occupy a high share.
3) DRAM: the private brand has achieved a breakthrough from zero to one. The first 19nm4gbddr4 was launched in 2021 / 6, which is applied to the fields of set-top box, TV, smart home, industrial security, network communication and so on. The product has been certified on the mainstream consumer platform, and has been used in mass production on many clients. At present, it is stable to ship. Continue to target the niche market, and 17nmddr3 is advancing in an orderly manner. According to the latest product manual, DDR3 has 8 commercial specifications and 8 industrial specifications, with a capacity of 2GB / 4GB and a data rate of up to 2133mbps. It will be used in many fields such as network communication, television, industry, on-board video and audio. In 2021, the global DDR3 market scale exceeded US $7 billion, Korean leaders Samsung and Hynix gradually faded out, Taiwanese manufacturers’ production capacity was not in place, DDR3 supply tended to be tight, and the company seized the opportunity. In 2021, the scale of global niche DRAM market (consumption, industrial control, etc.) is about 9 billion US dollars. In the future, with the stable development of various downstream applications, the scale of niche DRAM market will maintain growth.
4) nor and NAND have all entered the vehicle regulation: gd25 series and gd552gb high-capacity nor have all passed the vehicle regulation certification, and the vehicle regulation level 2mb-2gbnor has been fully paved. In February this year, 38nmgd5fslcnand passed the vehicle regulation certification. The vehicle regulation flash products have been adopted in batches in many well-known automobile enterprises in China, and are widely used in on-board auxiliary driving system, on-board communication system, on-board information and entertainment system, battery management system, DVR, intelligent cockpit T-box and other fields. According to the latest product manual, there are 40 car rules nor and 6 car rules NAND.
Microcontroller: the product line with the fastest growth in performance, and the proportion of industry is expected to be the same as that of consumer electronics in 2022. The annual revenue of MCU was 2.456 billion yuan, a year-on-year increase of 225%, the sales volume was 395 million pieces, a year-on-year increase of + 106%, the unit price was 6.2 yuan, a year-on-year increase of + 58%, and the gross profit margin was 66.36%, a year-on-year increase of + 19.51pct.
1) MCU: the revenue growth rate is the fastest, and the proportion of industrial field continues to grow. It is expected to be the same as that of consumer in 2022 and become the largest revenue source of MCU. The product is positioned as “MCU department store”. At present, gd32mcu has 35 series and more than 450 models, which can meet various needs of medium, high and low end. The products cover 110 / 55 / 40nm / 22nm processes. In 2021, low-power MCU was launched and applied in battery power supply systems, such as industrial meters, test instruments and other fields; In 2021, wireless MCU was launched and applied to IOT intelligent terminal; 40nm vehicle gauge MCU has been streamed into customer testing, which is mainly used in general body market, such as cockpit, etc; In addition, the company plans to use high-performance MCU in mainstream industrial applications such as industrial automation, energy and power, security and fire protection. At the same time, large overseas factories are guaranteed to supply Europe, America and Japan, and continue to make efforts in automobile, high-end industry and other fields. The reduction of supply in the mainland is expected to bring development opportunities. In 2021, the global MCU sales reached a record US $19.6 billion and is expected to reach US $21.5 billion in 2022. China’s Internet of things and new energy vehicles are growing rapidly, and the demand for MCU is strong. The growth rate of China’s MCU market continues to lead the world. It is expected that China’s MCU market will be about 36.5 billion yuan in 2021. In addition, with the continuous advancement of the demand for Internet of things terminals, the demand for 32-bit MCU by automobile ADAS system will increase significantly. The field of vehicle and industrial control will be the main target market for MCU in the global market in the future, and the company will fully benefit.
2) PMU: in order to continuously improve MCU ecological coordination, gd30 series PMU is launched, positioning four markets: power management unit, motor drive, LDO and battery charging IC. Motor drive chip and power management chip have been mass produced. According to the latest product manual, there are 9 models in the four markets.
Sensors: steady growth in revenue, layout AI, ultrasound and other new fields. The revenue was 546 million yuan, a year-on-year increase of + 21%, the sales volume was 164 million pieces, a year-on-year increase of 19%, and the gross profit margin was 24.13%, a year-on-year increase of -12.69pct. The company’s sensor products are applied to LCD touch, capacitive fingerprint and optical fingerprint. Among them, the revenue of capacitive fingerprint products increased significantly in 2021, deeply cultivated the side fingerprint products of mobile terminal, and laid out AI and ultrasound fields, such as TOF, 3D image and blood pressure examination.
Investment suggestion: it is estimated that the net profit in 2022 / 2023 will be 3.2 billion yuan respectively, corresponding to 26 / 20 times of PE. Considering that the company is the double leader of mainland storage + MCU industry, under the background of localization, there is strong downstream demand, continuous optimization of product structure, and both scarcity and growth, According to the previous report, the growth rate of the company’s “Q1 / 2022” was higher than the “Q2 / 2022” net profit, which we thought was higher than the “Q2 / 2022” net profit.
Risk warning event: the prosperity of MCU and nor may be lower than expected, and the OEM cost increases. The company cannot bring the risk of pressure on gross profit margin through product structure adjustment or price increase.
