\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 74 Changsha Jingjia Microelectronics Co.Ltd(300474) )
Event: the company announced 2021 annual report & 2022 quarterly report: 1) in 2021, the company achieved a revenue of 1.093 billion yuan, a year-on-year increase of 67.21%; The net profit attributable to the parent company was 293 million yuan, a year-on-year increase of 40.99%; The net profit deducted from non parent company was 256 million yuan, with a year-on-year increase of 36.07%; 2) 2022q1: the company achieved a revenue of 362 million yuan, a year-on-year increase of 70.34%; The net profit attributable to the parent company was 77.3 million yuan, a year-on-year increase of 58.20%; The net profit of non parent company deduction was 72.43 million yuan, a year-on-year increase of 57.31%.
Comments:
1. In 2021, equity incentive fees dragged down profit performance, and the revenue of chip products increased by 517%
In 2021, the revenue of the company’s military products such as graphics display and control and small specialized radar was 521 million yuan and 114 million yuan respectively, with a year-on-year growth rate of 12.35% and 8.52% respectively, maintaining a steady growth. The revenue of chip products was 447 million yuan, with a year-on-year significant increase of 517.46%. We believe that the high revenue of the company’s chip products is mainly due to the large volume of GPU chips under the background of Xinchuang. In 2021, the company’s gross profit margin was 60.86%, a year-on-year decrease of 10.29pct, mainly due to the significant increase in the proportion of chip product revenue with low gross profit margin, while the gross profit margin of chip products reached 44.49% in large-scale volume, a year-on-year increase of 10.79pct. In 2021, the company confirmed that the equity incentive fee was about 50.72 million yuan, which dragged down the profit performance. After adding back, the growth rate of net profit was basically the same as that of revenue.
2. The performance of 2022q1 increased rapidly. Driven by Xinchuang + new chip, the high growth trend of the whole year is expected to continue
In 2022q1, the company’s revenue increased significantly by 70.34%. We expect that the company’s GPU chip revenue will increase rapidly, and military products such as graphic display and radar will also maintain rapid growth. At present, the company has completed the research and development of JM5 / jm7 / jm9 three generations of independent GPU chips. Among them, jm7 series chips have been mass launched in the Xinchuang market, and jm9 series chips have been successfully developed and officially released. We expect that driven by the continuous deepening of Xinchuang and the gradual shipment of new chips, the company’s high performance growth trend in 2022 will continue.
3. Jm9 series chips received 100000 orders and expanded the application of public security scenes at the same time
In March 2022, the company announced the order of 100000 high-performance graphics processing chips and graphics cards. The ordered products can meet the high-performance display needs of geographic information system, media processing, CAD aided design, games, virtualization and artificial intelligence computing needs. We expect the order to be jm9 series products. This order is the first public order after the successful development of jm9 series chips in September 2021. At the same time, the company announced that it had signed a strategic cooperation agreement with a public security industry information company, and would cooperate to develop public security special PC equipment, server equipment and industry solutions based on Changsha Jingjia Microelectronics Co.Ltd(300474) gpu chip, and promote them to the whole country. We believe that public security is an important part of the E-government market. This strategic cooperation means that the company’s GPU chip is expected to expand into the field of e-government, which is of breakthrough significance.
Profit forecast and investment suggestions: adjust the profit forecast according to the company’s annual report and the performance of the first quarter report. We adjusted the company’s net profit from 450 / 659 million yuan to 449 / 640 million yuan in 20222023. It is estimated that the net profit in 2024 will be 862 million yuan. The corresponding net profit of the company from 20222024 to the current market value PE is 52.61/36.90/27.38 times respectively. Considering the high growth of the company’s performance and the historically low valuation, it was raised to the “buy” rating.
Risk tip: the revenue growth of the company’s products in military fields such as pattern / radar is lower than expected; The promotion speed of Xinchuang is lower than expected; The civil expansion speed of GPU chip is lower than expected; Industry competition intensifies.
