According to the company's semi-annual performance report for 2021, the company achieved 521 million yuan in revenue in the first half of 2021, an increase of 58.43 percent over the same period last year; the net profit attributed to the shareholders of the parent company was 33 million yuan; and the revenue corresponding to Q2 was 285 million yuan in a single quarter. Q2 increased by 20.76% compared with Q1 in a single quarter, realizing a net profit of 23 million yuan belonging to the shareholders of the parent company, an increase of 130% over Q1.
Iteration of new and old products, quarter-on-quarter improvement
Closely around the RF general technology, the company continues to launch related products, the main products include WiFi MCU, Bluetooth audio chip and car networking related products. With the development of the global AIoT industry, the company's Wi-Fi MCU product shipments have grown steadily, while the company's new generation of 40nm WiFi MCU chips have achieved mass production and become one of the more competitive products in the market. The company has taken the lead in passing the Wi-Fi 6 certification of the International Wi-Fi Union ("Wi-Fi Alliance") and launched the world's first Internet of things chip that supports Wi-Fi 6. In addition, the company's 28nm TWS Bluetooth headset chip has achieved mass production, and the new generation of 22nm TWS headset chip has completed research and development. According to the company's semi-annual report, the terminal customers of wireless data transmission products include Jinyi Technology, Leiber Technology, DJI Technology and other domestic well-known enterprises, while the terminal customers of wireless audio products include Motorola, LG, Sharp, Philips and so on. Since Q4 in 2020, the company has continued to strengthen the iteration of new products. Q2 has improved its revenue and profit in 2021. Q1's single-quarter gross profit margin in 2021 was 25.28%, an increase of 10.75 percentage points compared with 14.53% of Q4 in 2020. Q2 in 2021 due to supply-side production capacity in short supply, costs have increased, the company's gross profit margin decreased slightly compared with Q1. We believe that as the company continues to launch new products and iterate over the old products, the comprehensive gross profit margin is expected to gradually return to the normal level.
Actively participate in research and development, equity incentive program to strengthen talent echelon construction the core team of the company mostly comes from top foreign universities and scientific research institutions such as Yale University, UCLA, Kyoto University, AT&T Inc Bell Laboratory, etc., all have overseas study experience in the microelectronics industry, and are experts in the field of integrated circuit design. As of June 30, 2021, the company has 242 employees, of which 207 are R & D personnel, accounting for 85.54%.
From the perspective of R & D expenditure, the company's R & D expenditure in 2020 was 122 million yuan, a year-on-year increase of 23.44%. Q2 company's quarterly R & D expenditure in 2021 was 44 million yuan. While the company continues to strengthen its R & D investment, it carries out new product planning based on market demand and improves the conversion rate of the company's R & D investment. The company recently launched an equity incentive plan for a total of 62 people, including senior managers, middle and senior managers and core technical (business) backbone personnel. the exercise price of stock options granted for the first time is 72.46 yuan. The price for the first grant of restricted stock is 36.23 yuan.
Investment suggestion
We maintain the previous forecast, the company is expected to achieve revenue of 1.25 billion yuan, 1.65 billion yuan, 2.15 billion yuan from 2021 to 2023, and the net profit of shareholders belonging to the parent company is expected to be 161 million yuan, 257 million yuan, 330 million yuan, we maintain the previous "overweight" rating.
Risk hint
Competition in the industry intensifies, the development of the semiconductor industry is lower than expected; the company's technological innovation is lower than expected, resulting in lower-than-expected breakthroughs in new products; downstream application expansion and customer expansion are lower than expected.