Event: on August 27, the company released its semi-annual performance report. During the reporting period, the company realized operating income of 1.019 billion yuan, an increase of 87.19% over the same period last year; net profit attributable to shareholders of listed companies was 392 million yuan, an increase of 337.22% over the same period last year; net profit belonging to shareholders of listed companies after deducting non-recurrent profits and losses was 199 million yuan, an increase of 170.89% over the same period last year; and net cash flow from operating activities was 200 million yuan, an increase of 791.53% over the same period last year.
High-speed and high-precision ADC leader, research and development smoothly accelerate domestic replacement: ADC is known as the crown pearl of analog circuits, is the most difficult coefficient of analog circuit products, the company's high-speed ADC/DAC products in industrial control, medical imaging, power grid protection devices and other fields to achieve small batch sales, and has sent samples for a number of customers and design import. At the same time, it has expanded the services of high-precision SARADC and high-speed and high-precision DAC, completed the product design of high-precision SARADC and successfully flowed out, and has realized the design introduction in the fields of electric power, industrial control, rail transit and so on. According to the company's official account, the company's ADC chip BL1081 was put into trial operation in the first set of "domestic core" relay protection devices in Hubei power grid in the first quarter of 2021. ADC products have high barriers and few competitors, and the development of the company is progressing smoothly, which is expected to become an important performance growth point of the company in the future.
Power management IC continues to deliver, vehicle specification-level products are shipped in batches: since the integration of Weimeng and Lingxin Micro, the company's power management IC has developed rapidly, and the company's sales of power management products in the first half of the year have increased by about 105% compared with the same period last year. Continuous development of new products also continue to hit the ground, such as high-voltage 40V/1A, 40V/3A synchronous rectifier step-down DC-DC, applied to PD power market output power of more than 60W AC-DC products and so on. The company continues to layout automotive electronic power management IC. According to the announcement, it has achieved mass production and sales of automotive specification-level LDO products, and a number of DC-DC/LDO automotive electronic products have received intended demand, which are expected to be sold one after another in the second half of the year.
Intelligent metering products continue to expand downstream: state Grid, Southern Power Grid to carry out a new generation of watt-hour meter bidding, the company as the industry leader in advance layout, leading the iteration and upgrading, domestic business recovery is expected. The company successfully developed IR46 metering chip + metering MCU integrated metering core SoC IoT solution to achieve batch shipment; on the basis of the company's mature metering chip technology, the related technology is extended to charging piles, smart home, data center and other fields, among which multi-channel AC / DC metering products achieve mass production and sales in the application of the Internet of things. Aiming at the application of charging pile, the company has carried out the research and reserve of DC metering technology to meet the needs of high-precision DC metering.
Investment suggestion: we expect the company's income from 2021 to 2023 to be 1.972 billion yuan, 2.839 billion yuan and 3.634 billion yuan respectively, and the net profit to return to the mother is 695 million yuan, 682 million yuan and 817 million yuan respectively, and the corresponding EPS is 0.98,0.96 yuan and 1.15 yuan respectively, and the corresponding PE is 33 times, 34 times and 29 times respectively, maintaining the "buy-A" investment rating.
Risk hints: the risk of integrated circuit design industry; the risk of technical difficulty of integrated circuits and discrete devices in the field of industrial control; the risk of market introduction cycle; the risk of unusually tight supply of resources in the upstream industrial chain; the risk of uncertain bidding quantity of watt-hour meters; the risk that new product research and development and market development fall short of expectations.