\u3000\u3000 Ingenic Semiconductor Co.Ltd(300223) (300223)
Event: on January 24, the company released the performance forecast for 2021. In 2021, the net profit attributable to the parent company is expected to be 808-984 million yuan, with a year-on-year increase of 1004% – 1245%.
The downstream demand continued to be high, and the automotive, industrial, medical and other fields maintained rapid growth. According to the disclosure of performance forecast, the net profit attributable to the parent company is expected to be 808-984 million yuan in 2021, with a year-on-year increase of 1004% – 1245%, deducting 777-954 million yuan of non attributable net profit, with a year-on-year increase of 3693% – 4553%. Reasons for maintaining rapid growth: first, with the continuous development of automotive intelligence and the strong demand of automotive terminal market, the company’s sales revenue in the field of automotive electronics continues to grow; Second, the sales revenue in the fields of industry, medical treatment, communication and consumption has achieved good year-on-year growth at the same time. The demand of each product line of the company is strong, and the overall operating revenue of the company has increased rapidly compared with the same period last year, thus driving the significant growth of the company’s net profit.
China’s leading automotive memory chips benefit from the strong growth momentum of automotive Intelligence: according to the China Automotive Industry Association and the China Automotive chip industry innovation strategic alliance, it is estimated that the number of chips used in China’s traditional fuel vehicles will be 934 / vehicle in 2022, and the average number of chips in Shanxi Guoxin Energy Corporation Limited(600617) vehicles will be as high as 1459 / vehicle, with an average annual compound growth rate of more than 10%. The carrying capacity of single car chips driven by Internet of vehicles, automatic driving and intelligent vehicles is rising rapidly. Yole expects that the global automotive semiconductor market will grow to US $78.5 billion in 2026. The rise of automotive electronics has become the general trend, and the localization and substitution of chips is also conducive to the sales and promotion of the company’s products. According to the summary of investors’ research, facing the new demand of new energy vehicles and smart vehicles for high-speed and high-capacity storage products, the company adopts the development strategy of dislocation competition with Meguiar and Samsung, and is positioned in the differentiated market. DRAM products maintain iterative upgrading. The latest process of DDR4, lpddr4 and other products is 25nm, and the process will be continuously updated with the market demand, More new products will be launched in 2022. We believe that as a scarce target in the field of vehicle regulation storage, the company’s storage business will benefit from the strong demand for vehicle intelligence, vehicle networking and so on.
Smart video chips have entered the industry market, and analog and Internet products have long-term development potential: the company’s traditional business is microprocessor chips and smart video chips. It has accumulated for many years in the fields of embedded CPU, video codec, image signal processing, neural network processor, AI algorithm and so on. The products are mainly used in biometrics, commercial equipment, smart home Aiot markets such as smart wear. According to the company’s announcement, the competition in the field of intelligent video chips is relatively fierce. The company has benefited from the accumulation of technology, the change of competition pattern and the situation of short supply in the market. Its performance has grown rapidly. It has entered the industry market from the traditional consumer market and has been recognized by wyze, Anker, Hualai, Xiaomi, 360 and other brand customers, as well as mobile, telecom, Unicom and other operators. Analog interconnection products also maintain rapid growth, but the growth rate has not been fully released due to the impact of production capacity. For example, analog products such as ledriver, interconnection chips such as Lin, can, greenphy and g.vn, MCU and touch sensor chips are expected to maintain steady growth in the future.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 4.969 billion yuan, 6.956 billion yuan and 9.461 billion yuan respectively, the net profit attributable to the parent company will be 915 million yuan, 1.245 billion yuan and 1.517 billion yuan respectively, and the EPS will be 1.9 yuan, 2.59 yuan and 3.15 yuan respectively, corresponding to 60 times, 44 times and 36 times of PE respectively, maintaining the “Buy-A” investment rating.
Risk warning: the R & D of new products is less than the expected risk; Market competition intensifies risks; The downstream demand is lower than the expected risk; The process of automobile intellectualization is less than the expected risk
