\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
Event:
The company released the annual report of 2021 and Q1 financial report of 2022. In 2021, the operating revenue reached 8.51 billion yuan, an increase of 89.25% year-on-year; The net profit attributable to the parent company was 2.337 billion yuan, a year-on-year increase of 165.33%; The net profit attributable to the parent company was 2.224 billion yuan, a year-on-year increase of 300.48%. In Q1 2022, the growth momentum continued, and the operating revenue and net profit attributable to the parent company were RMB 2.230686 billion respectively, with a year-on-year increase of 39.02% / 127.65% respectively.
Comments:
Storage + MCU + sensor, three wheel drive, technology strengthening and product upgrading
In 2021, the company's performance basically met our expectations. About 3.85 billion storage, MCU and sensor products were shipped, with revenue of 5.451/24.56/546 billion yuan respectively, with a year-on-year increase of 66.04% / 225.36% / 21.36% respectively. The fastest growth of MCU performance is mainly due to the strong downstream demand and structural shortage, and the simultaneous rise of MCU product volume and price. The company continues to improve the product structure, the memory chip evolves to high capacity and high performance, and the 55nm process spinorflash realizes mass production, with a capacity of 512KB ~ 2GB; Nandflash realizes mass production of 38nm and 24nm processes, and completes 1GB ~ 8GB mainstream capacity coverage; The whole series of gd25 / 55 and gd5f products have passed aec-q100 vehicle regulation certification; The first 19nm process 4gbddr4 achieved a breakthrough in its own brand, and the three major product lines were comprehensively upgraded to provide more choices for the downstream, with strong market competitiveness to ensure performance growth.
Layout analog chips and cooperate with MCU to power the industrial and automotive fields
As the consumer electronics market represented by mobile phones tends to stabilize, downstream industries, automobiles and other fields have become the main growth points of MCU market. In order to seize the industry opportunities, the company has arranged power management unit, motor drive, high-performance power IC and lithium battery management chip, and the four model products cooperate with MCU to realize ecological coordination. 40nm vehicle gauge MCU chip has been tested. We believe that it is expected to achieve mass production in 2022, and the downstream application of MCU continues to expand, which is expected to further stabilize the leading position of MCU of the company.
Profit forecast and investment suggestions
Considering that MCU products continue to enjoy the simultaneous rise of volume and price under the tide of core shortage, and the gradual improvement of the three products drive the growth of performance, it is estimated that the company's revenue in 22-23 years will be 11.915/15.805 billion yuan (original value of 8.852/11.427 billion yuan), net profit will be 3.143/39.10 billion yuan (original value of 2.294/2.593 billion yuan), and the profit in 24 years will be 18.262 billion yuan, net profit will be 4.536 billion yuan and EPS will be 4.71/5.86/6.80 yuan respectively, The corresponding PE is 27 / 21 / 18 times respectively. With reference to the valuation of comparable companies, 35 times PE is given to the 2022 profit forecast, and the target price is 164.85 yuan, maintaining the "buy" rating.
Risk tips
The demand of downstream customers is less than expected, the wafer production capacity is insufficient, and the product R & D is less than expected.
