\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 13 Shanghai Fullhan Microelectronics Co.Ltd(300613) )
Event:
The company released its annual report for 2021, realizing an operating revenue of 1.717 billion yuan, a year-on-year increase of 181.36%; The net profit attributable to the parent company was 364 million yuan, a year-on-year increase of 315.01%; Net profit deducted from non parent company was 340 million yuan, with a year-on-year increase of 343.27%. The company released the first quarterly report of 2022, realizing an operating revenue of 515 million yuan, a year-on-year increase of 142.88%; The net profit attributable to the parent company was 102 million yuan, a year-on-year increase of 192.96%; The net profit deducted from non parent company was 95 million yuan, with a year-on-year increase of 174.13%.
Comments:
The three business lines grew rapidly and continued to increase R & D Investment: the three business lines of the company are professional security, intelligent hardware and automotive electronics, with a year-on-year growth rate of 336.96% / 105.91% / 139.86% respectively in 2021. The company has a strong demand for products. In 2021, the gross profit margin of integrated circuit business reached 42.45%, an increase of 2.76 PCT over the same period last year. The company increased R & D investment and superimposed the consolidation factors of Mou core technology. The R & D cost in 2021 was 250 million, with a year-on-year increase of 119.30%.
The company’s performance increased significantly year-on-year, with positive growth of 17.68% and 25.75% in revenue and net profit deducted from non parent company respectively in 21q4, and the gross profit margin remained stable at 37.71%.
The security SOC industry pattern has been reshaped, the company has a comprehensive layout and its share has increased rapidly: under the background of trade disputes, the global security SOC industry pattern has been reshaped. As the leader of domestic security SOC, the company actively cooperates with major customers in the industry, and its market share has been rapidly increased; M & A Mou core technology to expand security back-end chip solutions.
The company has continuously strengthened technology research and development, made comprehensive layout in different application fields, accumulated rich experience in image signal processing, high-definition video codec, high-performance chip design, artificial intelligence algorithms, and formed a series, multi-level and multi scene chip product matrix and solutions. The company has a complete set of analog security solutions, including front-end ISP, transmission link Rx, back-end master xvrsoc, the first t-magic coaxial communication protocol, providing customers with coaxial audio and high-speed upgrade functions, which is widely recognized; IPC products set a benchmark in terms of image effect. Through the integration of system software and hardware, IPC products play a good role in guiding customers in terms of product solutions, and are widely recognized by customers of leading enterprises in the industry.
With smart security and smart IOT, the smart car scheme is progressing smoothly: with the continuous implementation of AI application scenarios, the global aiot market has entered a rapid growth cycle. The company actively deployed AI applications and made good progress.
In the field of intelligent security, the company has a complete solution of digital security IPC + NVR from 2MP to 8mp. The products have high-quality image processing and coding performance, integrate high-efficiency NPU, and support AI functions such as professional human / vehicle shape detection.
In the field of smart IOT, low-power battery camera and doorbell solutions can achieve ultra-low power standby and support accurate human shape; Intelligent consumer IPC solutions can not only provide professional ISP processing and “see clearly”, but also support professional AI functions such as human shape / face / car shape to “understand”.
In the field of smart car dealership, the company has professional vehicle regulation ISP + analog video link chip + on-board DVR chip, as well as a series of on-board video products and solutions such as intelligent cockpit and driver behavior detection. The company’s products are one of the few chips certified by aec-q100grade2 vehicle regulations in China. They have the functions of integrating multi frame synthesis wide dynamic technology, ISP synchronization technology, matte night vision and so on. They have been successfully mass produced in automobile manufacturers. Vehicle chip products and solutions are widely used in the application scenarios of online vehicles to ensure travel safety and become the market leader.
Profit forecast, valuation and rating: the change of security market pattern has a positive impact on the company’s industry position, the market share has been rapidly improved, and the cooperation with key customers is progressing smoothly. At the same time, the company has actively invested in research and development, and the product competitiveness has been enhanced. Therefore, we raised the company’s net profit attributable to the parent company in 2022 and 2023 to 541 million yuan (+ 5%) and 711 million yuan (+ 13%), and the original forecast was 514 million yuan and 630 million yuan, At the same time, the performance forecast for 2024 is added. We estimate that the company’s operating revenue from 2022 to 2024 will be RMB 2.830/36.41/4.436 billion respectively, and the net profit attributable to the parent company will be RMB 541/7.11/871 million respectively. The current market value corresponds to 25 / 19 / 15 times of PE, maintaining the “buy” rating.
Risk tip: the industry competition intensifies, the promotion of new products is less than expected, and the promotion of vehicle regulation ISP is less than expected.
