\u3000\u3000 Amlogic (Shanghai) Co.Ltd(688099) (688099)
Event overview
The company released a performance report. It is estimated that the annual operating revenue in 2021 will reach 4.74 billion yuan to 4.79 billion yuan, an increase of 2 billion yuan to 2.05 billion yuan compared with the same period of last year, a year-on-year increase of 73.10% to 74.93%. It is estimated that in 2021, the net profit attributable to the owners of the parent company will reach 780 million yuan to 840 million yuan, an increase of 665 million yuan to 725 million yuan, a year-on-year increase of 579.24% to 631.49%. It is estimated that in 2021, the net profit attributable to the owner of the parent company after deducting non recurring profits and losses will be RMB 670 million to RMB 730 million, an increase of RMB 585 million to RMB 645 million compared with the same period of the previous year, a year-on-year increase of 688.18% to 758.76%.
Analysis and judgment:
Q4’s performance reached a new high and the downstream consumer electronics demand was strong
The company’s operating revenue has been continuously improved, exceeding RMB 4.7 billion in 2021. According to the median calculation of the announcement data, the company’s revenue in 2021 was RMB 4.765 billion, a year-on-year increase of 74.02%, and the net profit attributable to the owner of the parent company was RMB 810 million, a year-on-year increase of 605.36%. In 2021, the net profit attributable to the owner of the parent company after deducting non recurring profits and losses was RMB 700 million, with a year-on-year increase of 723.47%. On the one hand, the high growth of the company’s revenue is due to the rapid growth of the shipment of intelligent set-top box chips and AI audio and video system terminal chips. At the same time, the company’s new products in vehicle infotainment system, Siasun Robot&Automation Co.Ltd(300024) and other scenes accelerate the introduction with the help of existing high-quality customer groups and channel advantages. The growth rate of annual net profit in 2021 is higher than that of revenue, mainly because the scale effect generated by the growth of operating revenue further drives the improvement of the company’s profitability. Quarter by quarter, the fourth quarter of 2021 exceeded 1.5 billion yuan in a single quarter. Q4 single quarter revenue and net profit reached a record high. Q4 achieved an operating revenue of RMB 1.532 billion in a single quarter, a year-on-year increase of 57.45% and a month on month increase of 24.35%. Q4 realized a net profit attributable to shareholders of listed companies of 309 million yuan in a single quarter, with a year-on-year increase of 141.41% and a month-on-month increase of 22.62%. Q4 single quarter net interest rate was 20.17%, an increase of 7.02 percentage points year-on-year.
R & D investment continues to increase, and new products are actively introduced
The company continues to increase R & D investment in five directions: intelligent set-top box chip, intelligent TV chip, AI audio and video chip, WiFi Bluetooth chip and vehicle audio and video terminal. The company invested 626 million yuan in R & D in the first three quarters, a year-on-year increase of 54.24%, accounting for 19.36% of operating revenue. The company actively grasped the market opportunities and further expanded the global market opportunities of the existing product line. The Chinese outbound volume of intelligent set-top box chips and the overseas shipment volume of AI audio and video system terminal chips increased significantly. In terms of new products, in the first half of 2021, the WiFi + Bluetooth chip launched by the company for the popularization of the Internet of things has partially achieved mass production and continued research and development. In August 2021, the company launched the first dual band high-speed data transmission WiFi 5 + BT5 independently developed to support high-throughput video transmission 2 single chip. Using existing customers and channels, WiFi Bluetooth chips have significantly increased shipments and began to contribute to operating revenue.
Investment advice
Considering the company’s long-term accumulated technical and product advantages and the accelerated development of various product lines in the world, we raised the company’s forecast of revenue of 4.698 billion yuan, 6.323 billion yuan and 8.113 billion yuan from 2021 to 2023 to 4.775 billion yuan, 6.423 billion yuan and 8.435 billion yuan, and raised the EPS of 2021 to 2023 The forecasts of 73 yuan, 2.46 yuan and 3.23 yuan reach 1.98 yuan, 2.62 yuan and 3.46 yuan, corresponding to the closing price of 120.26 yuan / share on January 17, 2022, and the PE is 60.8/46.0/34.8 times respectively, maintaining the “buy” rating.
Risk tips
The R & D Progress of new products is less than expected; The downstream demand fluctuates greatly; Upstream foundry capacity is tight.
