\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
Events
Gigadevice Semiconductor (Beijing) Inc(603986) released the annual report of 2021 and the first quarterly report of 2022: in 2021, the operating revenue was 8.51 billion yuan, a year-on-year increase of 89.25%, the net profit attributable to the parent was 2.337 billion yuan, a year-on-year increase of 165.33%, and the net profit attributable to the parent after deduction was 2.224 billion yuan, a year-on-year increase of 300.48%; In 2022, Q1 achieved an operating revenue of 2.23 billion yuan, a year-on-year increase of 39.02%, a net profit attributable to the parent company of 686 million yuan, a year-on-year increase of 127.65%, and a net profit attributable to the parent company of 655 million yuan after deduction, a year-on-year increase of 136.51%.
Key investment points
Q1 is not light in the off-season, and the revenue of memory and MCU continues to grow high
In terms of products, in 2021, the company's storage chip / microcontroller / sensor achieved revenue of RMB 5.451/24.56/546 billion respectively, with a year-on-year increase of 66.04% / 225.36% / 21.36% respectively; In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 46.54% (year-on-year + 9.16pct), of which the gross profit margin of memory chip / microcontroller / sensor was 39.71% / 66.36% / 24.13% respectively, and + 4.92pct / + 19.51pct / - 12.69pct respectively year-on-year; In terms of period expenses, the expense rate (excluding R & D) in 2021 was 5.77% (year-on-year -4.67pct), including sales expense rate of 2.6% (year-on-year -1.72pct), management expense rate of 4.6% (year-on-year -0.17pct) and financial expense rate of - 1.42% (year-on-year -2.77pct). In addition, in 2021, the company's R & D investment reached 940 million yuan (year-on-year + 73.77%), and the R & D expense rate reached 9.89%.
In 2022, Q1's revenue increased by 2.3% month on month, and the net profit attributable to the parent company was basically the same month on month. The market demand for memory, MCU and other products was strong, and the structural shortage continued to be maintained. The product revenue in the first quarter increased by about 626 million yuan year-on-year. In addition, the gross profit margin of Q1 company reached 49.49% in 2022, with a year-on-year increase of 13.73pct.
Q1 still achieved good performance due to the impact of Spring Festival holidays. With the further implementation of stable growth in Q2 and the resumption of work and production after the recovery of the epidemic, Q2 performance is expected to achieve continuous improvement month on month.
NAND + nor fully entered the vehicle regulation, and the first private brand DRAM was mass produced
Norflash covers a full range of 512KB to 2GB large capacity. 55nm advanced process technology has been mass produced across the board, accounting for more than 40% of shipments in 2021. Nandflash 38nm and 24nm process nodes have achieved mass production and completed 1gb-8gb mainstream capacity coverage. In terms of vehicle regulation application, the whole series of gd25 / 55 and gd5f products of the company have passed the aec-q100 vehicle regulation level certification, realizing the comprehensive layout of vehicle regulation level products from spinorflash to spinandflash, which has been adopted in batches by many well-known automobile enterprises at home and abroad, and can provide high-capacity, high reliability and high reliability for on-board auxiliary driving system, on-board communication system, on-board information and entertainment system, battery management system, DVR, intelligent cockpit, T-box and other applications Products and solutions with excellent performance.
In terms of DRAM, in 2021, the company mass produced the first private brand 4gbddr4 (19nm process), which is widely used in consumer electronics (including set-top box, TV, smart home, etc.), industrial security, network communication and other fields. Meanwhile, the company's 17nmddr3 is advancing in an orderly manner as planned.
The growth rate of MCU product line is the highest, and the proportion of industrial applications continues to increase
The company's MCU has successfully mass produced 35 series and about 400 models to meet the needs of high, medium and low-end markets. At present, it has become the product line with the fastest performance growth. In terms of application field, the sales proportion of MCU in the industrial field continued to grow in 2021 and is expected to be the same as that of consumer applications in 2022, becoming the largest revenue source of MCU of the company. At the same time, the company is also planning high-performance MCU, mainly for mainstream industrial applications such as industrial automation, energy and power, security and fire protection.
In addition, in the field of automotive applications, in addition to the existing applications in the automotive aftermarket, the company's MCU is steadily entering the vehicle specification market. At present, it is actively promoting the mass production of 40nm vehicle specification MCU, which has been produced and tested by customers. This product will be mainly oriented to the general body market.
Profit forecast
It is predicted that the company's revenue from 2022 to 2024 will be 13.299 billion yuan, 16.321 billion yuan and 19.331 billion yuan respectively, and the EPS will be 4.89, 6.10 and 7.18 yuan respectively. The corresponding PE of the current stock price will be 26, 21 and 17 times respectively, maintaining the "recommended" investment rating.
Risk tips
The downside risk of industry prosperity, the risk that the R & D Progress of new products is less than expected, the risk of intensified industry competition, the risk of overseas policy changes, etc.
