\u3000\u3000 Wuxi Etek Microelectronics Co.Ltd(688601) (688601)
Event: the company released the performance forecast for 2021, and the net profit attributable to the owner of the parent company was about 160 million yuan in the whole year, with a year-on-year increase of 139%, slightly exceeding the expectation.
With the increase of customer share and the introduction of new products, the power management chip business grew rapidly. Focusing on the market and customer needs, the company continues to expand its R & D team, continuously increase R & D efforts, actively promote the improvement and upgrading of product line, increase product categories and optimize product structure. The company's LDO, OVP, TVs and other power chain chip markets enjoy a good reputation, and has successively established good cooperative relations with well-known mobile phone brand customers at home and abroad, such as Samsung, LG, Xiaomi and customer A. in 2021, the company will improve the original field and customer share and import new products.
The policy strongly promotes the landing of electronic detonators, and the business is expected to increase rapidly. The intelligent networking delay management chip developed by the company is mainly used in digital electronic detonators and other fields. Because electronic detonators have incomparable safety and control functions compared with traditional detonators, they have high safety coefficient and low social hazard coefficient, and are more suitable for the current development trend of blasting industry. In December 2018, the Ministry of public security and the Ministry of industry and information technology issued a notice requiring electronic detonators to reach the goal of full use in 2022. With the strong promotion of the policy, the electronic detonator is expected to penetrate rapidly, and the business is expected to bring greater profit elasticity to the company.
Continue to expand categories and layout long-term development: the company raised funds for power conversion and drive chip R & D and industrialization, power protection and drive chip R & D and industrialization, R & D center construction and development reserve, including signal chain products, magnetic induction chips and PMU projects. With the increasingly complex functions of terminal products and the continuous improvement of safety requirements, the company further enhances the company's core competitiveness by continuously arranging power conversion and power protection projects. In addition, the company has actively invested in the R & D of automotive electronic chips, and has formed small batch sales of existing products.
Equity incentive shows long-term development confidence. The company implemented equity incentive at the end of the 21st century. A total of restricted shares accounting for about 1% of the total share capital were granted to about 129 people. The assessment is based on 20 years, and the net profit growth rate from 21 to 23 years is no less than 100% / 160% / 240%, about 134 / 174 / 228 million yuan respectively, binding the interests of employees and highlighting the confidence of long-term development.
Maintain the "buy" rating. Considering the rapid growth of the company's power chain products in the share of major customers and the further acceleration of the implementation of electronic detonators, we raised the company's net profit forecast for 21-23 years from 138 / 1.89/2.63 to 160 / 2.19/306 million yuan, an increase of 16% / 16% / 16%, corresponding to 67x, 49x and 35x respectively, maintaining the "buy" rating.
Risk tip: the epidemic repeatedly affects the prosperity of consumer electronics, and the penetration progress of electronic detonators is lower than expected
