\u3000\u3000 Shanghai Awinic Technology Co.Ltd(688798) (688798)
Event overview
The company released the performance report, and it is estimated that the annual operating revenue in 2021 will be RMB 2.3 billion-2.35 billion, with a year-on-year increase of 59.98% to 63.46%. It is estimated that the net profit attributable to the owners of the parent company in 2021 will be RMB 270 million-300 million, with a year-on-year increase of 165.51% to 195.02%; It is estimated that the net profit attributable to the owners of the parent company after deducting non recurring profits and losses in 2021 will be RMB 228 million-258 million, with a year-on-year increase of 154.16% to 187.60%.
Analysis and judgment:
The annual performance increased rapidly and the downstream market demand was strong
According to the median calculation of the announcement data, the company’s revenue in 2021 was 2.325 billion yuan, a year-on-year increase of 61.72%, and the net profit attributable to the owner of the parent company was 285 million yuan, a year-on-year increase of 180.26%. In 2021, the net profit attributable to the owner of the parent company after deducting non recurring profits and losses was 243 million yuan, with a year-on-year increase of 170.88%. In 2021, the prosperity of the industry continues to improve, and the demand in downstream application fields is strong. The company continues to plough deeply in the field of consumer electronics to improve the share of original customers, and at the same time, the penetration of new products and the development of new markets. Timely carry out technical and product innovation according to customer needs, accelerate product iteration, and continuously promote the rapid growth of the company’s revenue and net profit. Quarterly, Q4 achieved an operating revenue of 664 million yuan in a single quarter, a year-on-year increase of 41.88% and a month on month increase of 11.60%. Q4 realized a net profit attributable to shareholders of listed companies of 89 million yuan in a single quarter, a year-on-year increase of 304.55% and a month on month increase of 20.27%. Q4 net interest rate reached 13.40%, up 8.74 percentage points year-on-year and 1.05 percentage points month on month. On October 1, 2021, the company issued the draft equity incentive plan. It is estimated that the impact of relevant share based payment expenses on the company’s net profit is about 29.0467 million yuan. Based on the downstream market demand, the company has been deeply engaged in the field of digital analog mixed signals, analog and RF chips for many years. From audio power amplifier chips, the company has successively extended to cover the product markets such as power management chips, RF front-end chips and motor drive chips. The company cooperates closely with upstream suppliers and establishes strategic cooperative relations, so that capacity guarantee and product power form a virtuous circle with each other.
Continue to increase R & D investment and accelerate the iteration of new products
The company continued to increase R & D investment. In the first three quarters, the R & D investment was 262 million yuan, a year-on-year increase of 98.32% and the revenue accounted for 15.78%. The company has formed a series of products with market competitiveness, mainly including audio power amplifier chip, power management chip, RF front-end chip, motor drive chip, etc. the four products have strong competitiveness in linear energy and cost performance. In the field of audio power amplifier chip, after more than ten years of continuous evolution, it has formed rich technology accumulation and complete product series. Downstream customers include well-known mobile phone manufacturers such as Huawei, Xiaomi, oppo, vivo, voice transmission, TCL and Lenovo, as well as well-known ODM manufacturers such as Huaqin, Wingtech Technology Co.Ltd(600745) and Longqi technology. At the same time, the company has expanded in new markets, including the Internet of things, industry, automobile and other fields. The company’s product line has been continuously iterated, the product category and structure have been continuously increased and optimized, covering the all-round needs of customers, and the profitability of products has been continuously improved.
Investment advice
Considering the continuous development of the company’s product line, the continuous increase and optimization of product categories and structure, we raised the company’s revenue forecast of RMB 2.341 billion, RMB 3.720 billion and RMB 5.476 billion from 2021 to 2023 to RMB 2.343 billion, RMB 3.724 billion and RMB 5.484 billion, and raised the eps1.00 from 2021 to 2023 45 yuan / share, 2.74 yuan / share and 3.88 yuan / share are predicted to be 1.72 yuan / share, 2.79 yuan / share and 3.95 yuan / share, corresponding to the closing price of 176.26 yuan / share on January 18, 2022. PE is 102.2/63.2/44.6 times respectively, maintaining the “buy” rating of the company.
Risk tips
Risks greatly affected by downstream smartphone shipments, increased market competition and technology iteration.
