\u3000\u3 China Vanke Co.Ltd(000002) 049 Unigroup Guoxin Microelectronics Co.Ltd(002049) )
Event:
The company released its annual report for 2021, realizing an operating revenue of 5.342 billion yuan, a year-on-year increase of 63.35%; The net profit attributable to the parent company was 1.954 billion yuan, a year-on-year increase of 142.28%; Net profit deducted from non parent company was 1.796 billion yuan, with a year-on-year increase of 158.10%.
The company released the first quarterly report of 2022, realizing an operating revenue of 1.341 billion yuan, a year-on-year increase of 40.84%; The net profit attributable to the parent company was 531 million yuan, a year-on-year increase of 63.91%; Net profit deducted from non parent company was 508 million yuan, with a year-on-year increase of 64.76%.
Comments:
Continue to increase R & D investment, and the change of product structure promotes the increase of gross profit margin: the performance of the company increased significantly year-on-year in 2021, of which the special integrated circuit business achieved a revenue of 3.364 billion yuan, a year-on-year increase of 101.08%, and the gross profit margin was as high as 77.20%, accounting for 63% of the total revenue from 51% in 2020. The revenue of intelligent security chip business was 1.664 billion yuan, with a year-on-year increase of 22.11% and a gross profit margin of 31.17%. The change of the company’s product structure drives the overall gross profit margin to increase by 7.15pct in 2021, reaching 59.48%.
The company continued to increase R & D investment. In 2021, the R & D expenditure was 632 million yuan, an increase of 82.13% year-on-year. In 22q1, the R & D expenditure in a single quarter was 183 million yuan, an increase of 127.33% year-on-year. High intensity R & D investment is conducive to opening up new business development space for the company.
Special integrated circuit platform company, category expansion brings new growth: the company’s special integrated circuit products cover microprocessor, programmable device, memory, network and interface, simulator, ASIC / SOPC and other series, nearly 500 varieties. At the same time, it can provide users with ASIC / SOC design and development services and domestic system chip level solutions.
The company has continuously expanded the application field of microprocessor and special chip group in the report period; With the rapid development of special FPGA products, 2x nano FPGA series products have gradually become mainstream products and occupy an important market position. In terms of network bus and interface products, the company continues to maintain a leading market share, which is an important product direction of the company. With the wide application of special SOPC platform products, system level chips and peripheral supporting products have become an important source of revenue for the company. At the same time, the market share of the company’s analog products continues to increase. The research and development of digital power supply, high-performance clock, high-speed and high-precision ADC / DAC and other products is expected to bring new growth points.
The position of the intelligent security chip industry is stable and new application scenarios are constantly developed: in 2021, the company’s intelligent security chip business continued to grow, providing security for many application fields such as mobile communication, financial payment, Internet of things, Internet of vehicles and so on, and the industry position was further consolidated.
By category, the second-generation resident ID card, electronic travel document and other license products are in stable supply, and new application projects related to identity security products are being actively promoted. In terms of Telecom SIM card, the company has provided rich product selection for the global telecom SIM card chip market through complete product layout, and the overseas market share has continued to increase. In addition, the company has been working hard in the third-generation social security card project, digital currency and other fields, and continued to explore overseas markets in the fields of financial payment security and financial terminal security. The company has also made breakthroughs in new scenarios such as the Internet of things, the Internet of vehicles and wearable. The vehicle specification level security chip scheme realizes the batch commercial use of multiple vehicle enterprises. The research, development and industrialization of high-end security chips and vehicle controller chips of the company’s convertible bond investment project are progressing smoothly, which will bring new impetus to the company’s future development.
Important subsidiaries and associates of the company:
1) National Microelectronics: China’s leading special integrated circuit platform enterprise, the first integrated circuit design company to launch the national “909” project, is a private enterprise undertaking the largest number of national major special projects in the field of integrated circuits, and is also a major domestic supplier of special FPGA and special storage chips.
2) same core Microelectronics: an industry-leading supplier of security chips and solutions, which has long been committed to the design of security chips in the fields of financial payment, identity recognition, Internet of things, Internet of vehicles, mobile communication and so on.
3) Ziguang Tongchuang: it is mainly engaged in the design and development of commercial FPGA products and related EDA tools. At present, it has fully explored the communication and industrial control market, and is one of the leading enterprises in the localization of domestic FPGA. In 2021, Ziguang Tongchuang completed a new round of capital increase and continued to increase R & D investment. In the field of ordinary products, large-scale FPGA has successfully realized mass production and delivery, the model pedigree of small and medium-sized FPGA products has been further improved, the total delivery volume of the company’s products has doubled, and the overall and rapid growth of delivery volume and revenue has been achieved in the fields of video image processing, industrial control and consumer market.
Profit forecast, valuation and rating: the company’s businesses continued to expand in 2021, achieved excellent performance and achieved a good start in the 14th five year plan. Under the high-speed growth forecast of 2023.9 billion yuan of the parent company, the net profit of 2023.9 billion yuan is expected to remain the same as that of 2023.9 billion yuan, which is expected to remain the same as that of 2023.9 billion yuan. We estimate that the company’s operating revenue from 2022 to 2024 will be RMB 7.653105.28/13.932 billion respectively, and the net profit attributable to the parent company will be RMB 2.911/39.09/5.169 billion respectively. The current market value corresponds to 36 / 27 / 21 times of PE, maintaining the “buy” rating.
Risk tip: the intelligent security chip business is less than expected, and the demand for special integrated circuits is less than expected.
