\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Event:
The company released the financial report of Q1 in 2022. In Q1 in 2022, the operating revenue was 1.414 billion yuan, a year-on-year increase of 32.37%; The net profit attributable to the parent company was 232 million yuan, a year-on-year increase of 92.42%; The net profit attributable to the parent company after non deduction was 225 million yuan, with a year-on-year increase of 93.07%.
Comments:
Downstream demand remained strong, and the scale effect helped improve profitability
The performance of Q1 company in 2022 is basically in line with expectations, and the revenue and profit have increased significantly, mainly due to the continuous strong downstream demand. While the storage chip is growing rapidly, the intelligent video chip, analog interconnection chip and microprocessor chip have entered the mass production stage. In 2021, Q1’s gross profit margin reached 37.41%, up 5.27 percentage points year-on-year. On the one hand, the increase in gross profit margin was due to the company’s measures to control costs and optimize product structure; On the other hand, it comes from the formation of the company scale effect. We are optimistic that the company’s four categories of products will continue to drive the company’s performance growth under the high downstream demand.
Continuously improve the four product lines, and open the long-term growth space for the storage leader
According to omdia data, the revenue of SRAM, DRAM and NOR flash products of the company ranked second, seventh and sixth respectively in the global market in 2021, and the leading position of storage was stable. The company continues to upgrade four categories of products: 1) memory chips, research and development of DDR2, lpddr2, DDR3 to DDR4, lpddr4 and other products with different types and capacities; 2) Analog interconnection chip, research and develop Lin, can, g.vn and other network transmission products for automotive applications; 3) Intelligent video chip, launched a new product T40 chip for the high-end market of intelligent vision IOT, and the AI computing power can reach 4-8t; 4) Micro processing chip, launched x1600 series chips for bar code, display control and other fields, and further consolidated the company’s market position in the field of commercial equipment such as QR code. Continuous research and development has expanded the company’s product structure, and multi business collaboration has injected growth momentum.
Profit forecast and investment suggestions
Electrification and intellectualization drive the growth of automobile demand for memory chips. We predict that the revenue from 2022 to 2024 will be 68.92/86.95/105.44, respectively, 1.194/14.91/1.829 billion yuan (original value of 1.191/14.87/1.824 billion yuan), EPS will be 2.48/3.10/3.80 yuan, and the corresponding PE will be 31 / 25 / 20 times respectively. Considering that the company is in a leading position in the automotive storage industry, the target price is given 106.64 yuan and the “buy” rating is maintained.
Risk tips
The market penetration of new products is less than expected, the wafer production capacity is insufficient, the industry competition is intensified, and the automobile sales volume is less than expected.
