\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
Conclusions and suggestions:
In 2021, the company's revenue from MCU, storage and sensor products increased rapidly, driving the annual revenue to increase by 90% and the net profit to increase by 165%. 1q22 revenue and gross profit margin continued to rise rapidly, driving the net profit of the current period to increase by 128%.
Looking forward to the future, the demand for automotive electronics and communication continues to be strong. As China's leading norflash enterprise, the company has accelerated its expansion to MCU, NAND, DRAM and sensor fields, and its rich product portfolio gives the company more room for growth. However, 2q semiconductor and automobile supply chain will be affected by the epidemic, or will have a certain suppression on the growth of the industry and the company's performance. Therefore, we conservatively estimate the growth of the company's net profit in 2022. It is estimated that the company's net profit in 2022 and 2023 will be 2.96 billion yuan and 4.03 billion yuan, with a year-on-year increase of 26.5% and 36.3% respectively, and EPS will be 4.43 yuan and 6.04 yuan respectively. The current share price corresponds to 27 times and 20 times of PE from 2022 to 2023 respectively. As the storage target of A-share scarcity and low valuation, the company gives a buy rating.
All business lines grew rapidly, and the net profit increased significantly in 2021: in 2021, the company achieved a revenue of 8.51 billion yuan, and yoy increased by 89.2%; The net profit was 2.34 billion yuan, with yoy increasing by 165.3% and eps3.3% 54 yuan. Among them, in the fourth quarter, the company achieved a revenue of 2.18 billion yuan, yoy increased by 64.8%, and a net profit of 690 million yuan, yoy increased by 231.4%. The company plans to pay 10.6 yuan for every ten shares. In terms of business, the revenue of memory business increased by 66.04% to 5.45 billion yuan compared with the previous year, and the gross profit margin increased by 4.9 percentage points. The customer base and coverage of medium and large capacity norflash continue to expand. The direction of automobile and industry is becoming the fastest-growing application field of norflash. The company's first private brand DRAM product was launched in 1h21, has been certified on mainstream consumer platforms, and has been used in mass production on many clients; The revenue of MCU products reached 2.46 billion yuan, a year-on-year increase of 225%, and the gross profit margin increased by 19.5 percentage points. It has become the product line with the fastest performance growth; The sensor business increased by 24% year-on-year to 550 million yuan. The company has become a platform enterprise of storage, microprocessor and sensor.
1q22 rapid growth in performance: in the first quarter of 2022, the company achieved a revenue of 2.23 billion yuan, with yoy increasing by 39%; The net profit was 690 million yuan, yoy increased by 127.6%, the net profit after deduction was 650 million yuan, yoy increased by 137%, eps1.5% 04 yuan. Thanks to the strong market demand for the company's memory, MCU and other products and the continued structural shortage of supply and demand, the company's comprehensive gross profit margin in the first quarter of 2022 was 49.5%, an increase of 13.7 percentage points over the same period last year, and the company's performance continued the previous high-speed growth trend.
Profit forecast: affected by the epidemic, 2q22 semiconductor and automobile supply chain will be impacted, which will suppress the growth of the company's performance. Therefore, we conservatively estimate the growth of the company's net profit in 2022. It is expected that the company will achieve net profit of 2.96 billion yuan and 4.03 billion yuan in 2022 and 23, with a year-on-year increase of 26.5% and 36.3% respectively, and EPS of 4.43 yuan and 6.04 yuan respectively. At present, the share price corresponds to 27 times and 20 times of PE from 2022 to 2023 respectively. The valuation is low and is rated as "buy".
Risk warning: the impact of the epidemic exceeds expectations;
