\u3000\u3 Guocheng Mining Co.Ltd(000688) 766 Puya Semiconductor (Shanghai) Co.Ltd(688766) )
On April 14 and April 26, Puya Semiconductor (Shanghai) Co.Ltd(688766) respectively released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 1.103 billion yuan, a year-on-year increase of 53.75%, and a net profit attributable to the parent company of 291 million yuan, a year-on-year increase of 238.39%. In the first quarter of 2022, the revenue was 224 million yuan, a year-on-year increase of – 4.91%, and the net profit attributable to the parent company was 42 million yuan, a year-on-year increase of 8.07%.
In the past 21 years, various product lines have been developing at a high speed. In 2021, the company achieved a revenue of 1.103 billion yuan, a year-on-year increase of 53.75%, mainly due to the common growth of various product lines, of which the revenue of NOR flash was 784 million yuan, a year-on-year increase of 58.93%, and the revenue of EEPROM was 319 million yuan, a year-on-year increase of 43.55%. On the profit side, the overall gross profit margin of the company in 21 years reached 36.23%, with a year-on-year increase of 12.44pcts, of which the gross profit margin of NOR flash reached 37.55%, with a year-on-year increase of 13.29pcts, and the gross profit margin of EEPROM reached 32.98%, with a year-on-year increase of 10.50pcts. The improvement of the gross profit margin of the company in 21 years is mainly due to the continuous optimization of product structure and downstream customer structure. In terms of the first quarter report of 2022, the company’s revenue was 224 million yuan, with a year-on-year increase of – 4.91%, mainly due to the weak demand in the traditional off-season in the first quarter, the impact of the epidemic and the Limited Logistics in some regions. However, the company still maintained high profitability, achieving a net profit of 42 million yuan in 22q1, with a year-on-year increase of 8.07%.
The structure of products and customers continues to be optimized, and the memory chip moves towards the high-end market. (1) In the first half of the year, the company has completed the development of a full range of products from 4MB to 128MB for 40nm process node nor flash of SONOS process platform, and all products were mass produced and shipped in Q3. At the same time, the company has completed the first etoxspi nor flash product design based on etox process platform and combined with its own low-power advantages. It has successfully passed the certification of many main chip manufacturers and started small batch shipment in 21q4. It is expected to further contribute revenue and enhance the company’s competitiveness in the field of medium and large capacity nor flash in the future. (2) Based on the 130nm process of EEPROM, the company has realized the R & D and mass production of EEPROM with 95nm and below. The capacity of EEPROM with IIC + SPI interface covers the whole series of 2k-2m, of which 2m high-capacity products have been mass produced in Q4. It is worth noting that the company’s EEPROM continues to move from the field of consumer electronics to the field of industry and automobile, and some on-board products have completed aec-q100 certification. At the same time, in the field of traditional consumer electronics, the company’s ultra-low working voltage and ultra-small size EEPROM have also been launched one after another, ensuring the competitiveness of the company’s products.
“Memory +” has a comprehensive strategic layout to enter the MCU and analog chip market. (1) Based on its leading technology and the advantages of ultra-low power memory, the company has laid out a general-purpose MCU product line, and 32-bit products based on ARM M0 + core have been shipped to customers; (2) The analog chip team has also completed the construction. The new layout of analog chip is the driver chip in the field of voice coil motor, which is currently being streamed. In the future, with the continuous introduction of new products and the continuous laying of product lines, the company is expected to accelerate its growth.
Investment suggestion: we predict that the net profit attributable to the parent company in 22 / 23 / 24 is expected to reach 351 / 483 / 640 million yuan, corresponding to 20 / 15 / 11 times of PE in 22 / 23 / 24. The company has international competitiveness in the field of memory chips, and continues to explore new product lines. It has long-term growth and maintains the “recommended” rating.
Risk warning: downstream demand is less than expected; Upstream capacity supply is limited; Market competition intensifies.
