\u3000\u3 Shengda Resources Co.Ltd(000603) 986 Gigadevice Semiconductor (Beijing) Inc(603986) )
On April 27, Gigadevice Semiconductor (Beijing) Inc(603986) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 8.51 billion yuan, a year-on-year increase of 89.25%, and a net profit attributable to the parent company of 2.337 billion yuan, a year-on-year increase of 165.33%. In the first quarter of 2022, the revenue was 2.230 billion yuan, a year-on-year increase of 39.02%, and the net profit attributable to the parent company was 686 million yuan, a year-on-year increase of 127.65%.
High speed growth through the cycle, memory + MCU go hand in hand. In 2021, the company achieved a revenue of 8.51 billion yuan, a year-on-year increase of 89.25%, mainly due to the rapid growth of memory + MCU, of which (1) the revenue of memory business was 5.451 billion yuan, a year-on-year increase of 66%; (2) MCU revenue was 2.456 billion yuan, a year-on-year increase of 225%; (3) The revenue of sensor business was 546 million yuan, a year-on-year increase of 21%. On the profit side, the overall gross profit margin of the company in 21 years reached 46.54%, with a year-on-year increase of 9.16pcts, of which (1) the gross profit margin of memory business reached 39.71%, with a year-on-year increase of 4.92pcts; (2) The gross profit margin of MCU business reached 66.36%, with a year-on-year increase of 19.51pcts; (3) The gross profit margin of sensor business was 24.13%, a year-on-year decrease of 12.69pcts. The company's gross profit margin increased significantly in the past 21 years, mainly due to the continuous progress of memory and MCU towards the high-end market and the continuous optimization of customer and product structure.
In the first quarter report of 2022, the company realized a net profit attributable to the parent company of 686 million yuan, a year-on-year increase of 127.67%, which was basically the same month on month. Under the impact of Q1 epidemic this year, the company's performance is still excellent. We believe that it is mainly due to the continuous breakthrough of the company in the high-end market and the positive layout of the high-end market in the early stage.
The high-end market continues to break, and we will spare no effort to build a "MCU department store". (1) The company's MCU has successfully mass produced about 400 models of 35 series, and the current proportion of the company's revenue in the industrial field has been in line with that in the consumer field, and the product structure has been continuously optimized. (2) In the automotive field, in addition to the existing applications in the automotive aftermarket, the company's MCU products are steadily entering the vehicle regulation market. At present, the company is actively promoting the mass production of 40nm vehicle specification MCU products, which will mainly face the general body market. (3) In terms of new product research and development, the company has launched four wi fimcu to the market, which can realize the connectivity to IOT cloud and be applied to smart appliances and IOT smart terminals. (4) The company's power management product line actively arranges MCU cooperation and faces the consumer, industrial, medical, communication and other markets.
Flash product structure continues to be optimized and auto industrial control customers continue to be expanded. (1) The company's norflash products have a full range of products with a capacity of 512KB to 2GB, and the 55nm advanced process technology has been mass produced across the board. At the end of 21, the 55nm norflash shipment accounted for more than 40%. (2) In terms of vehicle regulation products, the whole series of gd25 / 55 and gd5f products of the company have passed aec-q100 vehicle regulation level certification, realizing the comprehensive layout of vehicle regulation products from spinorflash to spinandflash.
DRAM self-developed products are accelerated in large quantities, and high-end process chips are expected to be launched this year. The company's self-developed 19nm process 4gbddr4 product has been mass produced in June 21. The self-developed product has realized the comprehensive localization from design, streaming, sealing, testing and verification, and is applied to the fields of set-top box, TV, smart home, industrial security, network communication and so on.
Investment suggestion: we expect that the net profit attributable to the parent company in 22 / 23 / 24 years is expected to reach 3.060/37.25/4.358 billion yuan, and the corresponding current price PE is 26 / 21 / 18 times respectively. As a global leader in storage and MCU, the company continues to expand applications in the field of automotive industrial control, or has long-term growth and maintains the "recommended" rating.
Risk warning: downstream demand is less than expected; Upstream capacity supply is limited; Market competition intensifies.
