\u3000\u3000 Ingenic Semiconductor Co.Ltd(300223) (300223)
The annual performance exceeded expectations, and the leader of on-board storage fully enjoyed the industry dividend
The company released the performance forecast for 2021. It is estimated that the net profit attributable to the parent company will reach 808-984 million yuan in 2021, with a year-on-year increase of 1003.94% – 1244.82% and a median of 896 million yuan, with a year-on-year increase of 1224.38%; The non net profit deducted was 777-954 million yuan, a year-on-year increase of 3693.01% – 4553.49%, with a median of 865 million yuan, a year-on-year increase of 4223.26%. The company’s performance maintained high growth, exceeding market expectations. Ingenic Semiconductor Co.Ltd(300223) after acquiring the leading vehicle storage ISSI, it has formed good synergy and card position advantages, fully enjoyed the industry dividend and is optimistic about the future development prospect of the company. We maintain the company’s performance forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 871 / 1237 / 1619 million respectively, the corresponding EPS will be RMB 1.81/2.57/3.36/share respectively, and the PE corresponding to the current stock price will be 63.5/44.7/34.1 times respectively, maintaining the “buy” rating.
Downstream demand is strong, and ISSI drives the rapid growth of the company’s overall performance
In 2021, the downstream demand for chips was strong, and ISSI achieved rapid growth, driving the overall performance of the company. In terms of automotive electronics, despite the impact of factors such as “lack of core” on automobile sales, in the tide of industry intelligence, the supply of on-board chips and storage is still in short supply, and the sales revenue of the company’s automotive electronics products continues to grow at a high level. In the fields of industry, medical treatment, communication and consumption, benefiting from the high popularity of demand, the company’s products have also increased both in volume and price. In the field of video chips, the competition pattern of the industry has improved significantly. The company’s products have ushered in rapid development opportunities and achieved good performance in 2021. The traditional microprocessor chip business has also achieved rapid growth under the background of the full penetration of the Internet of things.
As the general trend of automotive intelligence, the company will be one of the most beneficial targets to enter the platform vehicle chip company
Looking forward to the future, the curtain of automotive intelligence will slowly open, and the market scale of on-board storage and chip will continue to grow at a high rate. In the field of storage, the company has established a global automotive supply chain system, formed a comprehensive layout of on-board storage products such as SRAM, DRAM and flash, and extended to the medium and high-end market. DDR4 products continue to iterate. In the field of analog interconnection chips, the company’s LED driver chips benefit from the rapid penetration of intelligent lights, and the prospect is clear. At the same time, it focuses on the research and development of interconnection chips. The products have been supplied in small quantities. In addition, on-board ISPs and other products are also in reserve, and the layout of the company’s on-board chip platform is gradually taking shape. With the gradual easing of the capacity shortage of wafer factories in the future, the company’s performance is expected to achieve sustained and rapid growth.
Risk tip: the capacity of the wafer factory is tight, the chip price fluctuates, and the downstream demand is less than expected.
