\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
Gigadevice Semiconductor (Beijing) Inc(603986) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue and profit increased significantly, with a non deduction growth rate of more than 300%. In 2021, the company achieved a revenue of 8.51 billion yuan, yoy + 89.25%, and a net profit attributable to the parent company of 2.337 billion yuan, yoy + 165.33%, deducting a net profit not attributable to the parent company of 2.224 billion yuan, yoy + 300.48%. The annual comprehensive gross profit margin was 46.5%, with a year-on-year increase of 9.2%, and the net profit margin was 27.5%, with a year-on-year increase of 7.9%. Among them, the impairment loss of goodwill of the asset group of Shanghai Sili Microelectronics Technology Co., Ltd. in this year was about 156 million yuan after professional evaluation. In addition, the asset impairment affected the net profit of 200 million yuan.
In 2022q1, the revenue continued to increase month on month. The revenue in the single quarter was 2.230 billion yuan, yoy + 39.02%, QoQ + 2.27%, the net profit attributable to the parent company was 686 million yuan, yoy + 127.65%, qoq-0.39%, deducting the net profit not attributable to the parent company was 655 million yuan, yoy + 136.51%, qoq-0.81%, the gross profit margin in the single quarter was 49.5%, increased by 13.7%, decreased by 3.5%, the net profit margin was 30.8%, increased by 12.0% and decreased by 0.8% month on month.
Continuous high investment in R & D, and continuous breakthroughs in new product development and verification. 1) MCU explosive growth, domestic substitution accelerated. Under the background of extreme shortage of MCU industry in 2021, the replacement of gd32 series products, which ranks first in 32 in China, accelerated, with a growth rate of more than 220%, and the orders on hand are still accumulating. In the first half of 2021, the company mass produced motor drive chips (applied to electric tools, Siasun Robot&Automation Co.Ltd(300024) , industrial automation three-phase BLDC and PMSM motors) and power management chips (applied to TWS headphones, portable medical equipment, etc.). In addition, the company has successfully developed the first generation WiFi products and the first generation low-power products of the wireless product line. Looking forward to 2022q2, STMicroelectronics said it would expect to reduce the supply of MCU in mainland China on a month on month basis based on strategic and logistics transportation factors, Gigadevice Semiconductor (Beijing) Inc(603986) will be the biggest beneficiary of the gap, and MCU is expected to continue to grow on a month on month basis.
2) the proportion of new processes of NOR flash and the business progress of vehicle specification level are gratifying. 55nm advanced process technology has been mass produced across the board. By the end of 2021, the company's 55nm nor flash shipment accounted for more than 40%. The 38nm and 24nm process nodes of NAND flash products realize mass production, and complete 1GB ~ 8GB mainstream capacity coverage. In terms of vehicle regulation products, 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 products from spinorflash to SPI NAND flash, providing rich and diverse choices for the localization of on-board applications.
3) large amount of formal research space and DRAM. The company's first 4GB DDR4 (19nm process) product has won the orders and trust of DRAM customers in the fields of set-top box, TV, security and consumer, laying a solid foundation for follow-up long-term cooperation. Meanwhile, the company's 17nm DDR3 products are advancing in an orderly manner as planned.
Profit forecast and investment suggestions: in the past year, the demand for terminal intelligence and the localization trend of supply chain of the company have become more and more obvious, and the demand for products in the market has continued to be strong. The company has actively explored new markets and customers, optimized the structure of products and customers, and increased its contribution to revenue in industries and other fields; On the supply side, the company promotes the diversified layout of the supply chain, actively responds to supply shortages, and provides strong capacity guarantee for performance growth. We expect that the company will realize a net profit attributable to the parent company of RMB 3.12541395489 billion in 2022 / 2023 / 2024, corresponding to the current pe2.5 billion Maintain a "buy" rating of 19.4x/1.
Risk warning: downstream demand does not meet expectations, and the progress of new product technology does not meet expectations
