After the announcement, the total number of shares held by Wei Hao does not exceed 100 million and the total number of shares held by Wei Hao does not exceed 200 million after the announcement of block trading is issued, and the total number of shares held by Wei Hao does not exceed 300 million in 2025.
Go back to the course of cooperation, continue to increase holdings and strengthen strategic cooperation Will Semiconductor Co.Ltd.Shanghai(603501) is a global leader in automotive CIS and Ingenic Semiconductor Co.Ltd(300223) is a leader in automotive storage IC in China. In recent years, the two have continued to deepen cooperation and achieve strong alliance. 1) In December 2020, Will Semiconductor Co.Ltd.Shanghai(603501) and Ingenic Semiconductor Co.Ltd(300223) jointly established Shanghai Xinkai integrated circuit Co., Ltd. to develop norflash products for the consumer market based on years of flash design experience and technology accumulation of Beijing Sicheng. 2) In November 2021, Will Semiconductor Co.Ltd.Shanghai(603501) participated in the fixed increase of Ingenic Semiconductor Co.Ltd(300223) at the issue price of 103.77 yuan / share, received 5.3 million shares, and paid a total equity subscription of 550 million yuan. 3) From March 24 to May 19, 2022, Will Semiconductor Co.Ltd.Shanghai(603501) purchased 3 Allwin Telecommunication Co.Ltd(002231) 8604900 shares through centralized bidding, and paid a total equity purchase price of 1.518 billion yuan. As of May 20, 2022, Will Semiconductor Co.Ltd.Shanghai(603501) has held Ingenic Semiconductor Co.Ltd(300223) 23905100 shares accumulatively, accounting for 4.96% of Ingenic Semiconductor Co.Ltd(300223) total share capital, and paid a total equity purchase price of 2.068 billion yuan.
Weier and Ingenic Semiconductor Co.Ltd(300223) as China’s leading IC design enterprises, downstream customers are oriented to automotive, industrial, medical, communication and other fields, and there are great opportunities for strategic cooperation in many fields. This time Will Semiconductor Co.Ltd.Shanghai(603501) continues to increase its holdings of Ingenic Semiconductor Co.Ltd(300223) , which will further strengthen the cooperation between the two in the vehicle electronic market, realize resource complementarity in the customer’s product scheme and future technical direction, and help the two continue to expand their market share in the vehicle electronic market and achieve common growth.
Will Semiconductor Co.Ltd.Shanghai(603501) : the leading enterprise of vehicle CIS, with a comprehensive layout of the automotive semiconductor market.
Will Semiconductor Co.Ltd.Shanghai(603501) is a leading CIS enterprise in the world. At present, the semiconductor design business of the company has formed three business systems: image sensor solution, touch and display solution and simulation solution. In the field of automotive semiconductors, the company’s automotive CIS business achieved a revenue of about 2.4 billion yuan in 2021, with a year-on-year high growth, accounting for about 12% of the company’s semiconductor design business revenue. In the previous Will Semiconductor Co.Ltd.Shanghai(603501) automotive semiconductor in-depth special report, we analyzed the layout and growth path of Weill’s automotive semiconductor business with automotive CIS as the core from three levels: 1) in-depth layout of the core components of automatic driving perception layer: CIS and serdeslvds; 2) Important participants of intelligent cockpit: ar-hud based on LCOS scheme, touch display driver chip of vehicle screen, etc; 3) Omnidirectional layout of automotive semiconductors: Based on the accumulation of original technology, it is extended to vehicle MCU, simulation, power semiconductors, etc. at the same time, the omnidirectional layout of automotive semiconductors is carried out with the help of industrial fund Weihao Chuangxin.
As the world’s core on-board CIS supplier, weir has launched multiple models of products from VGA to 8m that can meet different application scenarios inside and outside the cabin. The company has been deeply engaged in the automotive CIS field for many years and has accumulated rich technology. The Hale (HDR and LFM engine) combination algorithm developed by the company can provide excellent HDR and LFM performance at the same time; DeepWell ™ Dual conversion gain technology can significantly reduce motion artifacts; Separate pixel LFM technology combined with four-way capture can provide high performance in the whole temperature range of the vehicle; In addition, the company also provides customers with a variety of automotive application specific integrated circuits (ASICs). Oax8000 adopts chip stacking architecture and integrates special DMS processors of NPU and ISP. In 2022, with the continuous improvement of the company’s vehicle CIS market share in China and overseas, and the large volume of automotive semiconductors other than CIS, the company’s automotive semiconductor business is expected to continue to maintain rapid growth and further increase its proportion in the company’s overall revenue.
The increase in Ingenic Semiconductor Co.Ltd(300223) is of positive significance for the company to carry out in-depth cooperation with Ingenic Semiconductor Co.Ltd(300223) in the vehicle market. Considering that this transaction is a medium and long-term strategic investment, the company designates the assets obtained from this transaction as financial assets measured at fair value and whose changes are included in other comprehensive income. The changes in the fair value of Ingenic Semiconductor Co.Ltd(300223) shares held by the company will not affect the company’s profits and losses and the company’s net profit.
In 2021, Will Semiconductor Co.Ltd.Shanghai(603501) realized revenue of 24.104 billion yuan (YoY + 21.59%), net profit attributable to parent company of 4.476 billion yuan (YoY + 65.41%), and net profit deducted from non attributable to parent company of 4.003 billion yuan (YoY + 78.3%). In Q1 2022, the company achieved revenue of 5.538 billion yuan (yoy-10.84%, qoq-4.33%), net profit attributable to parent company of 896 million yuan (yoy-13.9%, qoq-6.42%), and net profit attributable to parent company of 902 million yuan (yoy-4.45%, qoq-3.52%) after deduction of non profits. Meanwhile, the company expects that the growth rate of net profit attributable to parent company of 2q22 will not be less than 50% compared with that of 1q21.
Ingenic Semiconductor Co.Ltd(300223) : beneficiaries of the “core” of automobile intelligent core, build a department store of automobile regulation chip.
(1) Beijing Sicheng, a subsidiary of Ingenic Semiconductor Co.Ltd(300223) company, has worked in the memory field for more than 30 years, mainly providing high-quality and reliable DRAM, SRAM and flash memory for automotive electronics, industry and medical treatment. According to the statistics of omdia, in 2021, the revenue of Ingenic Semiconductor Co.Ltd(300223) sram, DRAM and norflash products ranked second, seventh and sixth respectively in the global market, with a leading position in the industry The Ingenic Semiconductor Co.Ltd(300223) dram product line is mainly based on DDR3 specification. The vehicle specification level DDR4 has started mass production and sales of 8 / 16GB high-capacity products in 21 years. 8gblpddr4 is expected to start sending samples this year, and the DDR4 process is moving towards 22nm. With the continuous improvement of automobile intelligence, the company is expected to benefit deeply. Norflash covers 512k ~ 1GB products of various specifications, and 512mnorflash with large capacity is expected to be shipped in 23 years.
(2) in addition to the on-board memory chip, Ingenic Semiconductor Co.Ltd(300223) is also increasing the input of vehicle scale simulation and interconnection chip to build a department store of vehicle scale chip. The company’s analog chips mainly include LEDDRIVER chips, touch sensor chips, DC / DC chips, etc. with the improvement of automobile intelligence and LED lighting penetration, the revenue of the company’s analog chip product line is expected to maintain a rapid growth trend. Interconnection chips are mainly oriented to the automotive market, including automotive Lin / CAN bus and network transmission technologies such as g.vn and greenphy. G.vn has been shipped at customers. We expect greenphy chips to contribute revenue in the second half of 22 years, and interconnection chips are expected to enter a rapid growth stage.
In 2021, Ingenic Semiconductor Co.Ltd(300223) achieved a revenue of 5.274 billion yuan, a year-on-year increase of 143.07%; The net profit attributable to the parent company was 926 million yuan, a year-on-year increase of 116527%. In Q1 2022, the company achieved a revenue of 1.414 billion yuan, a year-on-year increase of 32.37%; The net profit attributable to the parent company was 232 million yuan, a year-on-year increase of 92.42%.
Investment suggestion: Will Semiconductor Co.Ltd.Shanghai(603501) and Ingenic Semiconductor Co.Ltd(300223) as China’s leading IC design enterprises, this shareholding increase will further strengthen their cooperation in the automotive electronics market, realize resource complementarity in customer product solutions and future technical direction, and help both sides develop together in the automotive electronics market, continue to expand market share and achieve common growth. It is estimated that the net profit attributable to the parent company in Will Semiconductor Co.Ltd.Shanghai(603501) 22 / 23 / 24 will be 5.444/68.758537 billion yuan, and the corresponding current price PE will be 26 / 21 / 17 times respectively; It is estimated that the net profit attributable to the parent company in 3 Qiming Information Technology Co.Ltd(002232) 2 / 23 / 24 years will be RMB 1.171/15.51/1.875 billion respectively, and the corresponding current price PE will be 35 / 26 / 22 times respectively. We are strongly optimistic about their long-term development and maintain the “recommended” rating.
Risk warning: the project cooperation between the two is less than expected; The risk of prosperity fluctuation of semiconductor industry; Risk of downstream demand fluctuation; The risk of intensified industry competition.
