\u3000\u3000 Ingenic Semiconductor Co.Ltd(300223) (300223)
On January 24, Ingenic Semiconductor Co.Ltd(300223) predicted the annual performance. The company expects to realize the net profit attributable to the parent company of 808 ~ 984 million yuan and deduct the non net profit of 777 ~ 954 million yuan in 21 years. Corresponding to 21q4, the single quarter profit was about 173 ~ 349 million yuan, with a year-on-year increase of 240 ~ 587% and a month on month increase of – 38 ~ + 24%.
The company’s performance exceeded expectations, and there was still high-speed growth in the off-season of 21q4. At the same time, considering that the company’s PPA amortization expenses and loss on investment in connection business due to M & A totaled nearly $40 million, coupled with the large amount of bonus withdrawn at the end of the year, the actual operating profit for the whole year after restoration was about 1.068 ~ 1.244 billion yuan, which performed well and exceeded market expectations, we look at the long-term growth of the company.
The performance of smart video chips in the main industry is still bright. In 2021, the company continued to expand its product line of intelligent video chips. Previously, it launched back-end NVR chips in Q4 in 21, and 22q2 is expected to be mass produced on a large scale. In terms of production capacity, the company was unable to meet the strong demand of downstream customers due to the tight production capacity of the agent factory in 21 years. The newly put into operation IPC chip this year is expected to be streamed in TSMC, which is expected to alleviate the tight production capacity of IPC chip.
ISSI: China’s scarce automotive semiconductor platform, and the existing product lines have been imported into automobiles.
(1) the company is the global leader in vehicle DRAM chips. DDR4 products are currently expanding their categories. Vehicle specification DDR4 has mass produced 8g products. At present, the most advanced process is 25nm, and high-capacity DDR4 products are under planning. 8glpddr4 is expected to be introduced to the market in 22 years, which is expected to fully benefit from the increased demand for vehicle intelligent on-board storage. In terms of production capacity, the company maintains a strategic cooperative relationship with Liji electric power, and the production capacity supply is expected to maintain growth in 22 years.
(2) norflash covers 512k ~ 1GB products of various specifications and is oriented to markets with high reliability requirements such as automobile, industry and medical treatment,. In addition, the company and weir jointly established Xinkai, which is mainly oriented to the consumer norflash market, and norflash business revenue is expected to usher in a new round of growth.
(3) at present, the main shipment of on-board analog chips is ledriver chips. We expect the annual revenue of 21 years to reach 400 million yuan. The company maintains the R & D speed of launching more than a dozen new products every year, and the revenue is expected to maintain rapid growth. The connection business includes Lin, can, g.vn and greenphy chips. At present, g.vn chips have been shipped from customers. It is expected that greenphy chips will also contribute to revenue in 22 years. Starting this year, the connection business is expected to enter a rapid growth stage.
Investment suggestion: we predict that the net profit attributable to the parent company is expected to reach RMB 9.0/12.8/1.65 billion in 21 / 22 / 23, and the corresponding current price PE is 62 / 44 / 34 times respectively. As the core beneficiary of automotive intelligence, the company has prominent investment value and maintains the “recommended” rating.
Risk warning: product verification is not as expected; Cyclical fluctuations in downstream industries; Market competition intensifies.
