Events:
According to the company's annual performance forecast for 2021, the net profit in 2021 is expected to be about 53.6267 million yuan to 64.3521 million yuan, an increase of 61.0% to 94.0% compared with the same period last year. The net profit attributed to shareholders of listed companies is expected to be about 41.9137 million yuan to 50.2964 million yuan, an increase of 99% to 139% over the same period last year.
Comments:
Wi-Fi business is growing rapidly, and the sharp increase in R & D expenditure leads to revenue growth ahead of profits in 2021. The growth in revenue and gross profit of Wi-Fi chip products is mainly due to the R & D layout and market development of Wi-Fi chip product growth. The company's sales revenue of Wi-Fi chip products continues to grow by more than 100%. At the same time, the company continues to promote the upgrading of Wi-Fi chip products using more advanced processes, and the gross profit margin and sales share of the new generation of Wi-Fi chip products have increased. In terms of costs, in order to maintain market competitiveness and develop new product lines, the number of R & D personnel of the company has increased synchronously with the per capita salary, and the number of new product R & D mask consumables has also increased. The company's R & D investment has increased by nearly 100 million yuan over the same period last year, an increase of more than 80%, affecting the company's net profit level in 2021.
The Internet of things Wi-Fi market is growing rapidly. Focusing on graffiti, Midea and other leading manufacturers' IoT business volume, the Internet of things IoT market is growing rapidly. According to CIC, global smart device shipments will grow to 3.81 billion in 2024, with a compound growth rate of 26.2% from 2019 to 2024. The company relies on graffiti and Midea and other high-quality IoT customers to provide core Wi-Fi MCU chips, which will deeply benefit from the rapid development of the IoT industry.
Profit forecast
The company's wireless audio products are less than expected due to the short-term uncertainty of downstream TWS demand, and R & D expenditure, the company is expected to increase 21-2 years longer than high mother, short-term performance under pressure.
The net profit is 0.63, 1.39 and 211 million yuan, focusing on the continuous improvement of the performance under the new product iteration, giving the company 55 times PE in 22 years, corresponding to the target price of 53.43 yuan, maintaining the "overweight" rating.
Risk hint
The shortage of wafer foundry leads to lower-than-expected shipments and a sharp rise in costs; the introduction of TWS brand customers is not as expected; the demand of Wi-Fi chip customers is not as expected; and the entry of new manufacturers leads to a sharp decline in product prices.