\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Event: Will Semiconductor Co.Ltd.Shanghai(603501) issued an announcement that it planned to increase its holdings of Ingenic Semiconductor Co.Ltd(300223) shares by means of centralized bidding or block trading for no more than RMB 4 billion, and the cumulative number of Ingenic Semiconductor Co.Ltd(300223) shares held after the increase was no more than 50 million shares and no more than 10.38% of Ingenic Semiconductor Co.Ltd(300223) total share capital.
Comments:
Will Semiconductor Co.Ltd.Shanghai(603501) has previously increased its holdings of Ingenic Semiconductor Co.Ltd(300223) for many times, accounting for 4.96% of the total share capital of Ingenic Semiconductor Co.Ltd(300223) on November 12, 2021, Ingenic Semiconductor Co.Ltd(300223) disclosed the announcement of issuing shares to specific objects, and Will Semiconductor Co.Ltd.Shanghai(603501) was allocated Ingenic Semiconductor Co.Ltd(300223) about 5.3 million shares at the issue price of 103.77 yuan / share. From March 24, 2022 to May 19, 2022, Will Semiconductor Co.Ltd.Shanghai(603501) purchased 3 Allwin Telecommunication Co.Ltd(002231) 8.6 million shares through centralized bidding and paid about RMB 1.518 billion.
Complementary to Will Semiconductor Co.Ltd.Shanghai(603501) resources, it is expected to strengthen strategic coordination. Beijing Sicheng, a subsidiary of the company, has worked in the field of memory for more than 30 years, forming a complete set of technical system and engineering guarantee system, which can provide all kinds of memory products with high quality and high reliability for the fields of automotive electronics, industry and medical treatment, as well as chips for the communication industry and high-end consumer electronics industry. The company and Will Semiconductor Co.Ltd.Shanghai(603501) are both leading IC design enterprises, and downstream customers are oriented to the fields of automobile, industry, medical treatment, communication and so on Will Semiconductor Co.Ltd.Shanghai(603501) this increase is to further strategic cooperation with the company and realize effective resource complementarity.
The target is norflash, vehicle and simulation, and is optimistic about the development of the company for a long time. In December 2020, the company and Will Semiconductor Co.Ltd.Shanghai(603501) jointly established Shanghai Xinkai to explore the consumer grade norflash market. 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. The two sides have great opportunities for strategic cooperation in the future. In terms of simulation products, the company’s simulation and interconnection product line is mainly for high-end applications such as automobile, industry and medical treatment. It can cooperate and exchange with Will Semiconductor Co.Ltd.Shanghai(603501) ‘s consumer simulation product line and grow together. With the trend of electric and intelligent automobile, the market prospect of automobile chip is broad, and the company will usher in new development prospects in the era of intelligent driving.
Profit forecast, valuation and rating: the company is a leading enterprise in vehicle regulation storage, fully benefiting from the trend of vehicle intelligence. It is expected to jointly build a high-end product platform with Will Semiconductor Co.Ltd.Shanghai(603501) strong cooperation with the leader of vehicle regulation CIS. We kept the company’s profit forecast unchanged. From 2022 to 2024, the revenue was RMB 69.09/90.20/11.713 billion respectively, and the net profit attributable to the parent was RMB 1.296/16.65/2.121 billion respectively. The current market value corresponding to PE was 32 / 25 / 19 times respectively, giving the company a “buy” rating.
Excluding the impact of asset appreciation amortization and profits and losses related to Internet business, we estimate that the actual operating net profit of the company’s headquarters and ISSI in 20222024 is RMB 1.488/18.05/2.251 billion, and the corresponding PE of the current market value is 27 / 23 / 18 times respectively.
Risk tip: car sales are lower than expected, and the fluctuation of memory chip market is intensified.
