\u3000\u3000 Ingenic Semiconductor Co.Ltd(300223) (300223)
Event overview
The company released the annual performance report for 2021. It is estimated that the net profit attributable to the shareholders of the parent company will be 808 million yuan – 984 million yuan. The net profit attributable to the parent company after deducting non profits was 777 million yuan – 954 million yuan.
The annual performance maintained rapid growth, and Q4 hit a record high
According to the company’s announcement, the net profit attributable to the shareholders of the parent company is expected to be 808 million yuan – 984 million yuan, with a year-on-year increase of 1003.94% – 1244.82%; Among them, the net profit attributable to the parent company in Q4 in a single quarter was 161 million yuan – 337 million yuan, a record high, and the net profit in the same period last year was 50 million yuan. The net profit attributable to the parent company after deduction was 777 million yuan – 954 million yuan, with a year-on-year increase of 3693.01% – 4553.49%. The non recurring profit and loss in the reporting period was about 31 million yuan, compared with 52.7091 million yuan in the same period last year.
Technological upgrading, multi field layout and moving towards a new level
In 2020, the company completed the acquisition of Beijing Sicheng. As a wholly-owned subsidiary of the company, Beijing Sicheng has been included in the preparation scope of the company’s consolidated statements since June 2020. Beijing Sicheng includes two major business directions. One is memory chips, including SRAM, DRAM and flash products, which are mainly oriented to automotive, industrial, medical and high-end consumer markets. Memory products are mainly DRAM. In the first half of 2021, the holding subsidiary Shanghai Xinkai completed the production of the first norflash chip facing the mass consumer market, The test results basically meet the expected indicators; As a leading enterprise in automotive storage, the company will benefit from the further upgrading of automotive intelligence. Compared with traditional cars, the future cockpit, intelligent driving and other fields put forward new demands for storage, consumption and speed. At the same time, due to the gradual change of Automotive E / E architecture from distributed to centralized, there are new requirements for the amount and speed of storage. The other is analog and interconnect chips. The analog and interconnect product line includes LED driver chips, touch sensor chips, DC / DC chips, automotive microprocessor chips, Lin, can, g.vn and other network transmission chips. It is mainly for the automotive, industrial, medical and high-end consumer markets. The automotive sector has recovered significantly since the second half of 2020, and the company has fully benefited. Especially in terms of LED drive, the company’s products have made great progress. At present, it has cooperated with many lamp manufacturers. In addition, Ingenic Semiconductor Co.Ltd(300223) has two major businesses. One is microprocessor chip, which is mainly oriented to aiot market. In the first half of the year, the company carried out the optimization of xburst2cpu core, and carried out the research and development and chip production of new microprocessor products for bar code market, display control and other markets; Another category is the field of intelligent video. In the first half of the year, the company completed the definition and partial design of chip products for back-end equipment in the field of professional security. According to the information in the semi annual report, it is expected that the product will be put into production in the second half of 2021.
Investment advice
Based on the continuous prosperity of the semiconductor industry in 2021 and the rapid breakthrough of the company’s storage chip, analog and Internet chip and the intelligent video business of Jun original department, we raised the company’s profit forecast. It is estimated that the company’s revenue will be increased from 4.7 billion yuan, 5.8 billion yuan and 6.8 billion yuan to 5.64 billion yuan, 7.332 billion yuan and 8.798 billion yuan respectively from 2021 to 2023; It is estimated that the net profit attributable to shareholders of the parent company will be increased from 747 million yuan, 974 million yuan and 1156 million yuan to 896 million yuan, 1221 million yuan and 1482 million yuan respectively; EPS is expected to increase from 1.59 yuan / share, 2.08 yuan / share and 2.47 yuan / share to 1.86 yuan / share, 2.54 yuan / share and 3.08 yuan / share respectively. Corresponding to the closing price of 114.76 yuan on November 24, 2022, PE is 62x, 45x and 37x respectively. Maintain the “buy” rating.
Risk tips
The storage industry has obvious periodicity, and Beijing Sicheng is relatively affected by industry fluctuations; Ingenic Semiconductor Co.Ltd(300223) the competitiveness of self-developed products has declined; Car sales fell short of expectations.
