\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 74 Changsha Jingjia Microelectronics Co.Ltd(300474) )
Event: the company released its 2021 annual report and the first quarterly report of 2022. Among them, the revenue in 2021 was 1.093 billion yuan, a year-on-year increase of + 67.21%, and the net profit attributable to the parent company was 293 million yuan, a year-on-year increase of + 40.99%; In the first quarter of 2022, the revenue was 362 million yuan, a year-on-year increase of + 70.34%, and the net profit attributable to the parent company was 77 million yuan, a year-on-year increase of + 58.20%.
Rapid and large-scale production of civil products, and the performance continues to be high.
(1) growth: in 2021, the company’s revenue increased by 67.21% year-on-year, and the net profit attributable to the parent company increased by 40.99% year-on-year. Among them, the revenue of products in the chip field (we judge that it is mainly the large volume of 7 series chips) was 447 million yuan, with a year-on-year increase of 517.46%, which is the main driving force for the high growth of the company’s performance. In the first quarter of 2022, the company’s revenue increased by 70.34% year-on-year, and the net profit attributable to the parent company increased by 58.20% year-on-year.
(2) profitability: in 2021, the company’s gross profit margin was 60.86%, down 10.29pct year-on-year, mainly due to the rapid expansion of the company’s chip business with relatively low gross profit margin (the gross profit margin of this business was 40.84% in 2021, and the gross profit margin of graphics display and control business was 72.41%) in the civil field, and its contribution to the total revenue increased from 11.06% in 2020 to 40.84% in 2021.
(3) R & D strength: in 2021, the company invested 273 million yuan in R & D, with a year-on-year increase of 53.61%; In the first quarter of 2022, the company invested 67 million yuan in R & D, a year-on-year increase of 52.31%. In addition, by the end of 2021, the total number of R & D personnel of the company was 834, with a year-on-year increase of 42.08%. A total of 205 patents (169 national invention patents, 23 utility model patents, 10 international patents and 3 appearance patents) were applied, with a year-on-year increase of 28.13%, of which 68 invention patents, 20 utility model patents and 3 appearance patents have been authorized and 77 software copyrights have been registered.
Continuously carry out adaptation work with domestic CPU and OS, and continuously improve the construction of application ecology. As one of the core components of computer, GPU itself can not work alone. It must cooperate with CPU, operating system, complete machine and application software to give full play to its application performance. Therefore, it is very important to build a domestic application ecosystem Changsha Jingjia Microelectronics Co.Ltd(300474) on the basis of continuously updating and iterating its GPU products, it also continuously promotes the adaptation and debugging with domestic CPUs, complete machine manufacturers, operating systems, industrial application manufacturers, etc. According to the company’s official account, the company’s subsidiary Changsha Jingmei integrated circuit design Co., Ltd. has recently signed in-depth ecological cooperation agreements with Kirin software and CEC technology to jointly expand the industry application market and build the industry ecology. We believe that as the leader of domestic GPU, the technical performance of the company’s products continues to catch up with international peers, while the construction of application ecology also helps it build its core competitiveness, and the domestic substitution process can be expected.
9 series chips are expected to usher in batch orders, military + civilian dual wheel drive. ① Civil products: the company has formed a perfect chip R & D system, the R & D cycle is continuously shortened (the R & D cycle of the third generation GPU chip: 8 / 4 / 3 years), the pace of catching up with foreign leaders is continuously accelerated (the intergenerational difference between the third generation GPU chip and foreign similar products: 12 / 7 / 5 years), and the application market is constantly opened. At the same time, the civilian chips of generation 7 and 9 are expected to increase in volume one after another (in 2021, the company’s high performance is mainly due to the rapid volume of Series 7 chips; series 9 chips have completed testing and are expected to usher in batch orders). ② Military products: the company’s main products in the military field include picture display modules and small specialized radars. Among them, the figure display module mainly adopts the jm5400 chip independently developed by the company, which realizes the domestic substitution in the military field. In recent years, the company has carried out technological innovation and product expansion according to the application needs of different industries, actively extended to other fields, and continued to develop and provide appropriate graphic display and control modules and their supporting products for broader application fields such as vehicle mounted and ship display and control. At the industry level, during the 14th Five Year Plan period, the assembly of weapons and equipment will enter a large-scale stage, and the procurement is expected to improve. We believe that the company, as a leading enterprise in China’s graphic display module, will fully benefit. The company has formed a business pattern of military products + civil products resonance, and the high prosperity in the two fields is expected to continue to provide growth momentum for the company.
Maintain the “buy” rating: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 452 million yuan, 657 million yuan and 837 million yuan, and the corresponding PE will be 52, 36 and 28 times respectively.
Risk tip: the expansion of civil market is less than expected, and the promotion progress of 9 series chips is less than expected.
