\u3000\u3 Guocheng Mining Co.Ltd(000688) 798 Shanghai Awinic Technology Co.Ltd(688798) )
Performance summary: 202]2q1, the company achieved a revenue of 600 million yuan, a year-on-year increase of 20.1%; The net profit attributable to the shareholders of the listed company was 57.509 million yuan, a year-on-year increase of 73.7%.
Q1 of the company has a strong momentum and its profitability has been improved. Combined with the annual report of 2021: 1) revenue end: in 2021, the company achieved revenue of 2.33 billion yuan, a year-on-year increase of + 61.9%, and audio power amplifier / power management / motor drive / RF front-end products achieved revenue of 10.0/8.0/2.9/180 million yuan, a year-on-year increase of + 33.8% / + 75.8% / + 124.9% / + 81.1%. 2) Profit side: in 2021, the gross profit margin / net profit margin was 40.4% / 12.4% respectively, with a year-on-year increase of + 7.8pp / + 5.3pp respectively; In 2022q1, the gross profit margin / net profit margin are 46.5% / 9.7% respectively. 3) Expense side: in 2021, the sales / management / R & D expense ratio was 5.5% / 5.6% / 17.9% respectively, with a year-on-year increase of + 1.1pp / + 1.0pp / + 3.6pp respectively; In 2022q1, the rates of sales / management / R & D expenses are 4.7% / 6.4% / 24.9% respectively.
IC technology platform company, the five product lines of "acoustic photoelectric shooter" are laid out, and the R & D investment is increased, which is expected to increase the market share. The company has deeply cultivated analog and mixed signal chips and completed the horizontal expansion of business with audio power amplifier as its fist product. In 2021, thanks to the strong demand of downstream and the large volume of various new products, the company's power supply, motor and RF business achieved rapid growth. In the future, the sales volume of the company's high-value audio products with algorithms and medium and high power is expected to continue to increase, the sub categories of power management chips such as charge pump, LDO and OVP will continue to increase, and the strong demand for aiot, industry and automobile will have the opportunity to continue to drive the revenue improvement of each product line. The company pays attention to R & D, and its R & D investment doubled in 2021. The company's high R & D investment is conducive to consolidating its competitiveness.
Deepen cooperation with upstream suppliers, and the production capacity is expected to be improved; Stable cooperation with downstream customers and accelerated access to aiot, automotive and industrial control customers. The company actively cooperates with upstream suppliers outside China, prospectively arranges the 12 inch wafer process, and the deepening of cooperation with upstream suppliers is expected to make the company break through the capacity bottleneck, increase production and reduce cost. The downstream of the company is mainly in the field of mobile phones. The company's technological strength and years of cooperation have established a good and stable relationship with downstream customers of mainstream Android brands and head ODM customers. The company is accelerating its entry into non consumer customers, and its share in the non consumer market is expected to further increase in the future.
Profit forecast and investment suggestions. It is estimated that from 2022 to 2024, the company's EPS will be 2.53/3.56/4.97 yuan respectively. Considering that the company's comprehensive product line layout in the field of digital analog mixing, the synergy of various product lines, and the company's strong R & D investment are expected to promote the company's market share, we give the company 70 times PE in 2022, corresponding to the target price of 177.10 yuan. For the first time, give a "buy" rating.
Risk tip: the risk of demand falling short of expectations, the risk of capacity climbing falling short of expectations, the risk of deterioration of China's supply chain caused by the epidemic, and the risk of continued downturn in end consumption.
