\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Event overview
Shaoxing Weihao enterprise management consulting partnership, a wholly-owned enterprise of Will Semiconductor Co.Ltd.Shanghai(603501) intends to increase its holdings of Ingenic Semiconductor Co.Ltd(300223) by means of centralized bidding or block trading at a price of no more than RMB 4 billion, and the cumulative number of Ingenic Semiconductor Co.Ltd(300223) shares held after the increase is no more than 50 million shares and no more than 10.38% of the total share capital of Ingenic Semiconductor Co.Ltd(300223) after the increase.
Analysis and judgment:
The company has comprehensive and leading automobile business
At present, Ingenic Semiconductor Co.Ltd(300223) has three product lines: ISSI (memory), lumissil (analog and interconnection chip) and ingenic (intelligent video chip and microprocessor), and has completed the technical layout of “storage + simulation + interconnection + computing” Ingenic Semiconductor Co.Ltd(300223) based on the original intelligent video chips and microprocessors, acquired Beijing Sicheng to expand the product line of high integration, high-performance storage, analog and interconnection chips. At present, Ingenic Semiconductor Co.Ltd(300223) main products SRAM, DRAM, norflash, embedded flash, analog chip, etc. have been widely used in automotive electronics, industry and medical treatment, communication, consumer electronics and other fields. According to the Will Semiconductor Co.Ltd.Shanghai(603501) announcement, according to the statistics of omdia (former his), in the field of memory chips, the revenue of Ingenic Semiconductor Co.Ltd(300223) sram, DRAM and norflash products in 2021 ranked second, seventh and sixth in the global market respectively, ranking in the forefront of the international market. In 2021, the company achieved a revenue of 5.27 billion yuan, yoy + 143.1%, a net profit attributable to the parent company of 926 million yuan, yoy + 1165.3%, and a comprehensive gross profit margin of 37.0%; 22q1 company’s revenue was 1.41 billion yuan, yoy + 32.4%, the net profit attributable to the parent company was 230 million yuan, yoy + 92.4%, and the gross profit margin was 37.4%. The performance continued to increase, and the profitability remained high.
Strong alliance to build a platform company
In December 2020, the company and Will Semiconductor Co.Ltd.Shanghai(603501) jointly established Shanghai Xinkai integrated circuit Co., Ltd. According to Will Semiconductor Co.Ltd.Shanghai(603501) announcement, relying on Beijing Sicheng’s many years of flash design experience and technology accumulation, we have developed norflash products for the consumer market. In recent years, nor flash has been widely used in 5g, TWS headphones, Internet of things, automotive electronics and other emerging fields, and the company’s NOR flash business is expected to achieve significant growth.
The company’s memory chip has a good customer base in the automotive market, and Will Semiconductor Co.Ltd.Shanghai(603501) is the leading enterprise of vehicle CIS in the world. In the future, the company will have great business strategic cooperation opportunities with Will Semiconductor Co.Ltd.Shanghai(603501) in the future.
In terms of simulation products, the company’s simulation and interconnection product line covers LED driver chips, touch sensor chips, DC / DC chips, automotive microprocessor chips, Lin, can, g.vn and other network transmission chips, mainly for automotive, industrial, medical and high-end consumer markets. The company is expected to achieve common growth through cooperation and exchange with Will Semiconductor Co.Ltd.Shanghai(603501) in subdivided technical fields and markets Will Semiconductor Co.Ltd.Shanghai(603501) continue to increase its shares in the company, which can strengthen its business strategic cooperation and realize positive effects such as resource complementarity and development strategy synergy.
Investment advice
We maintain the company’s profit forecast. From 2022 to 2024, the revenue will be 6.474 billion yuan, 7.758 billion yuan and 9.334 billion yuan respectively; The net profits attributable to the shareholders of the parent company were 1.203 billion yuan, 1.462 billion yuan and 1.790 billion yuan respectively; EPS is 2.50 yuan, 3.04 yuan and 3.72 yuan respectively. Corresponding to the closing price of 95.96 yuan on May 23, 2022, PE is 38x, 32x and 26x respectively. Maintain the “buy” rating.
Risk tips
The storage industry has obvious periodicity, and Beijing Sicheng is relatively affected by industry fluctuations Ingenic Semiconductor Co.Ltd(300223) the competitiveness of self-developed products has declined; Car sales are less than expected; There is uncertainty and the increase is not completed.
