Giantec Semiconductor Corporation(688123) ( Giantec Semiconductor Corporation(688123) . SH) released the annual report of 2021 on April 29. In 2021, the operating revenue was 544 million yuan, with a year-on-year increase of 10.17%; The net profit attributable to the parent company was 108 million yuan, a year-on-year decrease of 33.57%; The non net profit deducted was 851773 million yuan, a year-on-year increase of 41.62%.
Looking through the annual report, first finance found that the net profit attributable to the parent decreased year-on-year in 2021, but the increase in non net profit was mainly due to the year-on-year decrease of more than 70 million yuan in investment income such as trading financial assets held by it in 2021.
By product, non-volatile memory chip (EEPROM) is the main product contributing to Giantec Semiconductor Corporation(688123) revenue. In 2021, Giantec Semiconductor Corporation(688123) eeprom, voice coil motor driver chip, smart card chip and other main product lines achieved sales revenue of 424677 million yuan, 519614 million yuan and 65.038 million yuan respectively, with a year-on-year increase of 3.90%, 9.57% and 82.26%, accounting for 78.06%, 9.55% and 11.95% of operating revenue in the same period, and the gross profit margin was 39.85%, 18.00% and 48.36% respectively.
With its high reliability, millions of erasures, low cost and many other advantages, EEPROM has long met the stable data storage needs of traditional application fields such as consumer electronics, computers and peripherals, industrial control, white appliances, communications and so on. According to CCID Consulting data, the demand for EEPROM in smartphone camera field will reach 5.525 billion by 2023; The demand for EEPROM in the field of automotive electronics will reach 2.387 billion; The demand for EEPROM in LCD panel field will reach 968 million.
In this way, the automobile market will relay consumer electronics to become the second largest demand market of EEPROM.
In terms of automotive electronics, Giantec Semiconductor Corporation(688123) some A1 grade EEPROM products have successfully passed the aec-q100 reliability standard certification of a third-party authority at the end of the fourth quarter of 2021. At present, there are a full range of A2 grade and A3 grade automotive EEPROM products and A1 grade automotive EEPROM products with mainstream capacity, but there is still much room for expansion in the field of high-grade automotive EEPROM.
At present, Giantec Semiconductor Corporation(688123) automotive grade EEPROM products have been widely used in peripheral components such as vehicle camera, LCD display and entertainment system, and gradually extended to core components such as BMS battery management system, intelligent cockpit and MDC. End customers include SAIC, FAW, BAIC, GAC, Geely, Chang’an, Byd Company Limited(002594) , great wall, Chery, Weilai, ideal, Xiaopeng, Tesla, Volkswagen, Renault, Toyota, Nissan, Hyundai Kia and other mainstream automobile manufacturers at home and abroad.
Giantec Semiconductor Corporation(688123) 2021 R & D investment increased. According to the data of datayes!, In 2019, 2020 and 2021, the company’s R & D expenses were 577077 million yuan, 519653 million yuan and 742994 million yuan respectively, accounting for 11.24%, 10.52% and 13.66% of the current operating revenue respectively. The company’s R & D expenses in 2021 increased by 223341 million yuan compared with that in 2020, accounting for 3.14 percentage points of operating revenue.
Giantec Semiconductor Corporation(688123) also disclosed the first quarter report of 2022. In the first quarter, Giantec Semiconductor Corporation(688123) operating revenue increased by 50.75% year-on-year, net profit attributable to parent company increased by 246.90% and net profit deducted by non parent company increased by 356.78%.
According to the quarterly report, the substantial increase in the company’s net profit was mainly due to the comprehensive impact of the company’s products used in high value-added markets such as ddr5 memory modules, automotive electronics and industrial control, especially the increase in the sales proportion of SPD EEPROM products, as well as the adjustment of the price system of some products of the company.
It is worth noting that in 2021, Giantec Semiconductor Corporation(688123) applied to ddr5 memory modules, automotive electronics, industrial control and other fields, some new EEPROM products were successfully mass produced.
Everbright Securities Company Limited(601788) said that the suppliers of ddr5 SPD EEPROM are only Montage Technology Co.Ltd(688008) & Giantec Semiconductor Corporation(688123) and IDT. It is estimated that the annual shipments of ddr5 SPD EEPROM jointly developed by Giantec Semiconductor Corporation(688123) and Montage Technology Co.Ltd(688008) and Montage Technology Co.Ltd(688008) will be 46 million, 105 million, 168 million and 210 million from 2022 to 2025.
