\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 61 Sg Micro Corp(300661) )
Event:
The company released the annual report of 2021 and the first quarterly report of 2022q1: in 2021, the company achieved a revenue of 2.238 billion yuan (a year-on-year increase of 87.07%), and a net profit attributable to the parent company of 699 million yuan (a year-on-year increase of 142.21%). Among them, 2021q4 achieved a revenue of 703 million yuan in a single quarter (a year-on-year increase of 110.65% and a month on month increase of 13.42%), and a net profit attributable to the parent company of 248 million yuan (a year-on-year increase of 203.74% and a month on month increase of 30.18%). In 2022q1, the revenue was 775 million yuan (up 96.81% year-on-year and 10.28% month on month), and the net profit attributable to the parent company was 260 million yuan (up 244.98% year on year and 4.89% month on month).
Key investment points:
In 2022q1, the company’s performance reached a quarterly high, and the domestic analog chip leader grew rapidly. The company continued to launch competitive new products and expand customers. Under the background of high prosperity in the downstream, the company superimposed domestic substitutes to drive the high growth of the company’s performance. In 2021, the sales volume of the company’s integrated circuit industry was 4.752 billion (a year-on-year increase of 44.41%). In terms of products, the revenue of power management products was 1.529 billion yuan (a year-on-year increase of 80.27%), and the gross profit margin was 53.03% (a year-on-year increase of 8.36 PCT); The revenue of signal chain products was 709 million yuan (a year-on-year increase of 103.38%), and the gross profit margin was 60.77% (a year-on-year increase of 2.15 PCT). In terms of expenses, the company’s ability to control expenses has been steadily improved. In 2021, the company’s expense rate (excluding R & D) was 8.27% (a year-on-year decrease of 1.53pct), of which the rates of sales, management and finance expenses were 5.28% (a year-on-year decrease of 0.39pct), 3.15% (a year-on-year decrease of 0.18pct) and – 0.16% (a year-on-year decrease of 0.96pct), and the expense rate in 2022q1 further decreased to 7.26% (a year-on-year decrease of 2.28pct).
The R & D team continues to expand, R & D blossoms at multiple points, and the growth momentum of domestic analog chip leaders is sufficient. At present, the company has nearly 3800 products available for sale in 25 categories, covering the two fields of signal chain and power management. The company pays attention to product innovation and the management of R & D team: in terms of R & D, the R & D investment in 2021 and 2022q1 was 378 million yuan (a year-on-year increase of 82.55%) and 121 million yuan (a year-on-year increase of 75.12%) respectively; In terms of R & D personnel, in 2021, the number of R & D personnel was 602 (a year-on-year increase of 59.26), and the number of R & D personnel accounted for 70.16% (a year-on-year increase of 4.08 PCT). In 2021, the company launched more than 500 new products with completely independent intellectual property rights, and their comprehensive performance indicators have reached the advanced level of similar products in the world. They can be widely used in consumer electronics, communication equipment, industrial control, medical instruments, automotive electronics and other application fields. At present, some products of the company’s high-precision analog-to-digital converter series chips, high-performance operational amplifier and comparator series chips, high-speed analog switch series chips and other projects have achieved small batch mass production. The company has arranged in advance and accumulated relevant technologies in emerging fields. At present, it has made remarkable achievements in smart phones, communications, Internet of things, automotive electronics and other fields. In the future, it will continue to give full play to its advantages, get close to customers and further expand its share outside China.
Profit forecast and investment rating: analog chips are widely used downstream, with many types of products and high requirements for R & D personnel, and the products have a long life cycle. The company has been deeply engaged in the field of analog chips for more than ten years, and its products are widely used in the fields of smart phones, automotive electronics, industry, smart home and wearable devices. Benefiting from the continuous expansion of the company’s product categories, the continuous optimization of product structure and the superposition of domestic substitutes, the company is expected to continue to improve its market share and develop rapidly. Based on the latest performance of the company, we raised the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.012 (+ 1.47) / 13.75 (+ 2.43) / 1.830 billion respectively, the corresponding EPS will be RMB 4.28/5.81/7.73/share respectively, and the corresponding current PE valuation will be 64 / 47 / 36 times respectively, maintaining the “buy” rating.
Risk warning: the downstream demand is less than the expected risk; The company’s new product R & D progress is less than the expected risk; Risk that the progress of customer import is less than expected; Risk of epidemic rebound.
