\u3000\u3 Guocheng Mining Co.Ltd(000688) 099 Amlogic (Shanghai) Co.Ltd(688099) )
In 2022, the net profit deducted from Q1 increased by 228.70% year-on-year, and the performance growth exceeded expectations
The company released the report for the first quarter of 2022. In 2022q1, the operating revenue was RMB 1.481 billion, with a year-on-year increase of 59.40%, the net profit attributable to the parent was RMB 270 million, with a year-on-year increase of 202.24%, and the deduction of non net profit was RMB 257 million, with a year-on-year increase of 228.70%. The performance growth exceeded the expectation. We maintain the company’s profit forecast from 2022 to 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.333/17.932331 billion yuan respectively, corresponding to EPS of 3.24/4.36/5.67 yuan / share from 2022 to 2024, and the current share price corresponding to PE of 31.8/23.6/18.2 times respectively, maintaining the “buy” rating.
Overseas demand in downstream areas is booming and high, and the advantages of multiple places under the epidemic are prominent
The company’s performance in the first quarter of 2022 exceeded the expected growth mainly due to the stable growth of the shipments of terminal chips. The popularity of set-top boxes and Android chips in overseas markets is accelerating. At the same time, compared with Broadcom, the company’s products have advantages in performance, cost performance, service and back-end support, and are constantly accelerating to seize the share of Broadcom; In terms of AI audio and video system terminal chips, the company’s aiotsoc benefited from the continuous recovery of the downstream consumer electronics market in 2021, and the shipment increased significantly. It is expected that in 2022, with the application expansion of new scenarios and the acceleration of overseas market demand, the relevant revenue will further increase; In terms of smart TV chips, the company explored new markets such as overseas customers and projectors. Since overseas companies were not affected by the epidemic, the relevant revenue increased steadily. At the same time, in the face of the impact of the epidemic, the company has taken a variety of measures to actively respond to it. Give full play to the comprehensive advantages of the company’s global multi location strategic layout, and strengthen the resource sharing and collaborative cooperation among various R & D centers and subjects around the world, so as to ensure the security and stability of the company’s global supply chain.
Scale effect improves profitability, and new businesses of WiFi and automotive electronics are progressing smoothly
Under the influence of scale effect and active sales strategy, the profitability of 2022q1 company has been greatly improved. In 2022, with the further expansion of the company’s production capacity and the further rise of some prices under the tight balance of chips, the high profitability is expected to be maintained. The company’s WiFi Bluetooth chip has been mass-produced and commercially available. The research and development of the next generation WiFi 6 chip is advancing in an orderly manner, and the adaptation range and speed are expected to improve again. Driven by the continuous upgrading iteration of products, the company’s WiFi Bluetooth chip is accelerating its introduction into the market. At the same time, the company’s automotive electronic chips are mainly used for on-board entertainment screens, continue to obtain orders from overseas high-end customers, steadily increase shipments, and enter the field of intelligent cockpit, which can be expected in the future.
Risk warning: downstream demand is less than expected; Overseas market expansion was less than expected.
