\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 82 Maxscend Microelectronics Company Limited(300782) )
Events
After the annual report was issued, the net profit of non parent company was RMB 3.695 billion, a year-on-year increase of RMB 3.629 billion, a year-on-year increase of RMB 3.602 billion, and a year-on-year net profit of RMB 3.629 billion; In 2022, Q1 achieved an operating revenue of 1.33 billion yuan, a year-on-year increase of 12.43%, a net profit attributable to the parent company of 459 million yuan, a year-on-year decrease of 6.7%, and a net profit attributable to the parent company of 462 million yuan after non deduction, a year-on-year decrease of 8.86%.
Key investment points
Q1 revenue achieved adverse growth under seasonal abnormal factors
In terms of products, in 2021, the revenue of RF discrete devices and RF modules was 3.352 billion yuan and 1.2 billion yuan respectively, with a year-on-year increase of 36.13% and 332.68% respectively; In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 57.72% (year-on-year + 5.12pct), of which the gross profit margins of RF discrete devices and RF modules were 55.52% and 64.45% respectively, year-on-year + 4.56pct and -2.74pct respectively; In terms of period expenses, in 2021, the expense rate (excluding R & D) was 2.37% (year-on-year -0.67pct), of which the sales expense rate was 0.97% (year-on-year -0.26pct), the management expense rate was 1.13% (year-on-year -0.01pct), and the financial expense rate was 0.27% (year-on-year -0.4pct). In addition, in 2021, the company’s R & D investment reached 304 million yuan (year-on-year + 66.91%), and the R & D expense rate reached 6.57%.
The RF front-end chip industry is seasonal, and generally the sales volume in the second half of the year is relatively high. In 2021, due to the impact of complex and changeable international political situation and covid-19 epidemic and other events, downstream manufacturers panic and stock up, resulting in seasonal anomalies in the first quarter. With the high base of Q1 in 2021 and the weak downstream demand of Q1 in 2022, and the closure of the city caused by covid-19 epidemic affecting logistics, the company’s revenue still increased by 12.43% year-on-year and 15.65% month on month.
The proportion of receiving module increased, and the transmitting module Q1 was officially mass produced and shipped
By the end of 2021, the company had sold nearly 26 billion RF front-end chips and modules. As the first manufacturer to launch RF module series products at the receiving end among Chinese enterprises, it has been affirmed by many well-known smartphone brand manufacturers, entered the supply chain system and became the main supplier. In 2021, the company’s sales of receiving end modules accounted for 25.91%, an increase of 15.98 PCT year-on-year. In the future, with the advance of the RF filter construction project arranged by the company in the early stage, the company will make further breakthroughs in the field of receiver modules and open up broader development space.
Lpamif, the main transceiver module product applied in 5gnr band launched by the company in 2021, has been shipped in large quantities in brand customers, and the cumulative sales volume of Q1 in 2022 is close to 6 million. The mass production and shipment of l-pamif means that the company has initially formed a complete matrix of RF front-end product line, and accelerated the growth of the company in the field of RF front-end by giving full play to the collaborative advantages of various types of RF front-end products.
The filter production line is progressing smoothly and welcomes the beginning of the transformation of fablite
The 6-inch filter wafer production line laid out by the company in 2021 has realized that the main equipment has been successively moved in and entered the commissioning stage. It is expected that the construction of the whole plant will be completed in June 2022. The preliminary products are expected to enter the mass production stage in the second quarter of 2022. The production capacity is expected to continue to climb from the second quarter of 2022. During the climbing process, the product form will be adjusted according to different application expansion. It is expected that the wafer production capacity can reach 1000013000 pieces / month by the end of 2022, Synchronously realize the matching wafer level packaging capacity scale.
Through the self built filter production line, the company can have the whole industry chain capacity of chip design, process manufacturing and packaging test, build the exclusive production capacity of filter products, obtain a high fit between design R & D and process technology R & D, quickly grasp and meet the market demand, further realize the collaborative optimization of the whole industry chain of products, and ensure the independent control of the company’s production capacity, 2022 will be the beginning of the company’s formal transformation from fabless business model to fablite business model.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2024 will be 6.041 billion yuan, 7.729 billion yuan and 9.536 billion yuan respectively, and its EPS will be 7.51, 9.59 and 11.56 yuan respectively. The corresponding PE of the current stock price will be 24, 19 and 16 times respectively, maintaining the “recommended” investment rating.
Risk tips
Downside risk of industry prosperity, risk that the progress of new product research and development is less than expected, risk that the progress of production line construction is less than expected, risk of intensified industry competition, risk of overseas policy changes, etc.
