\u3000\u30003 Guangdong Tapai Group Co.Ltd(002233) 00223)
Conclusions and suggestions:
Will Semiconductor Co.Ltd.Shanghai(603501) announced that it plans to increase its holding of Ingenic Semiconductor Co.Ltd(300223) shares by no more than RMB 4 billion. After the increase, Will Semiconductor Co.Ltd.Shanghai(603501) will hold no more than 10.4% of the total shares of Ingenic Semiconductor Co.Ltd(300223) in total We believe that the increase of Weill’s shares in the company is conducive to the complementarity of their resource advantages on the one hand, and on the other hand, it also shows that the current Ingenic Semiconductor Co.Ltd(300223) valuation has been recognized by industrial capital, which will further enhance market confidence and have a positive impact.
Looking forward to the future, the company’s Beijing Sicheng has been deeply engaged in the memory field for more than 30 years, and the business of high reliability memory chip products such as SRAM, DRAM and flash is expected to fully benefit from the rapid growth of the terminal market. In addition, the company’s original new intelligent video products will also benefit from the growth of IOT and security demand. On the whole, there is more room for performance growth. However, considering that the 2q22 epidemic affects the stability of semiconductor and automobile supply chain, we conservatively estimate the growth of net profit of the company in 2022. It is expected that the company will realize net profit of 1.16 billion yuan and 1.48 billion yuan in 202223, with a year-on-year increase of 26% and 27% respectively, and EPS of 2.42 yuan and 3.08 yuan respectively. At present, the share price corresponds to 35 times and 28 times of PE from 2022 to 2023 respectively. The valuation is low and is rated as “buy”.
Will Semiconductor Co.Ltd.Shanghai(603501) holdings increase has a positive impact: Will Semiconductor Co.Ltd.Shanghai(603501) announced that the subsidiary intends to increase its Ingenic Semiconductor Co.Ltd(300223) shares by means of centralized bidding or block trading for no more than RMB 4 billion. After the increase, Will Semiconductor Co.Ltd.Shanghai(603501) will hold no more than Ingenic Semiconductor Co.Ltd(300223) shares and no more than 50 million shares, accounting for 10.38% of the total share capital (currently holding 4.96%), And Will Semiconductor Co.Ltd.Shanghai(603501) does not seek Ingenic Semiconductor Co.Ltd(300223) control within 12 months from the date of deliberation and approval by the general meeting of shareholders. We believe that the increase of Will Semiconductor Co.Ltd.Shanghai(603501) shares in Ingenic Semiconductor Co.Ltd(300223) has a positive impact on the stock price of Ingenic Semiconductor Co.Ltd(300223) on the one hand, Will Semiconductor Co.Ltd.Shanghai(603501) is the leader of image sensors and has outstanding advantages in the field of vehicle mounted cameras, which is expected to impact the goal of No. 1 market share in the world. While Ingenic Semiconductor Co.Ltd(300223) has sufficient layout in the field of computing and storage. This Will Semiconductor Co.Ltd.Shanghai(603501) shareholding is conducive to enhancing the competitiveness of both sides and realizing the complementarity of advantageous resources; On the other hand, after the withdrawal of the industry in March and April, Ingenic Semiconductor Co.Ltd(300223) has a low valuation level and is recognized by industrial capital again, which will further enhance market confidence.
Rapid growth of 1q22 performance: 1q22 company achieved a revenue of 1.41 billion yuan, a year-on-year increase of 32.4%; The net profit was 230 million yuan, a year-on-year increase of 92.4%. Among them, the growth of automobile storage business is nearly 40% or about 1 billion yuan, which is the main driving force of performance growth. In terms of gross profit, 1q22 company’s comprehensive gross profit margin was 37.4%, an increase of 5.3 percentage points over the same period last year, and its profitability was further improved year-on-year.
Profit forecast: looking forward to the future, the company’s Beijing Sicheng has been deeply engaged in the memory field for more than 30 years, and the business of highly reliable SRAM, DRAM, flash and other memory chip products is expected to fully benefit from the rapid growth of the terminal market. In addition, the company’s original new intelligent video products will also benefit from the growth of IOT and security demand. On the whole, there is more room for performance growth. However, considering that the 2q22 epidemic affects the stability of semiconductor and automobile supply chain, we conservatively estimate the growth of the company’s net profit in 2022. It is expected that the company will realize net profit of 1.16 billion yuan and 1.48 billion yuan in 2022 and 23, with a year-on-year increase of 26% and 27% respectively, and EPS of 2.42 yuan and 3.08 yuan respectively. At present, the share price corresponds to 35 times and 28 times of PE from 2022 to 2023 respectively. The valuation is low and is rated as “buy”.
Risk warning: the impact of the epidemic exceeds expectations;
