Event: on March 28, the company released its 2021 annual report, which showed that the company achieved operating income of 2.024 billion yuan, an increase of 51.95% over the same period last year, a net profit of 729 million yuan, an increase of 38.12% over the same period last year, and a net profit of 398 million yuan, an increase of 124.31% over the same period last year.
Product structure continues to be optimized, industrial control, automotive electronics applications account for more than half. The company has a rich product line, which can be summarized as power chain (power management, power device business) and signal chain (data converter, power special chip, front end of Internet of things, non-volatile memory, standard signal product business). According to the company announcement, the company achieved revenue of 2.024 billion yuan in 2021, an increase of 51.95% over the same period last year, a net profit of 729 million yuan, an increase of 38.12%, and a non-return net profit of 398 million yuan, an increase of 124.31% over the same period last year. The company's IC products achieve revenue of about 1.42 billion yuan, pan-industrial market applications account for more than 50%, automotive electronics (power management, power devices, etc.) achieve rapid growth. Among them, the revenue of the signal chain simulation chip is 490 million yuan, + 59.20% year-on-year, and the gross profit is 42.54%; the revenue of the non-volatile memory chip is 179 million yuan, + 10.12% year-on-year, and the gross profit margin is 37.53%; the revenue of the power management chip is 654 million yuan, + 39.97% year-on-year, and the gross profit margin is 42.49%; the revenue of power devices is 102 million yuan, + 199.46% year-on-year, and the gross profit margin is 24.18%. In addition, the revenue of integrated circuit trade reached 536 million yuan, + 73.56% compared with the same period last year, and the gross profit margin was 10.75%.
Power chain: car gauge products to achieve batch sales, forward-looking layout of SiC device research and development. The company ploughs MOSFET and IGBT chip design, mastering shielded gate power MOSFET, super junction power MOSFET, IGBT and other device technology, and continues to promote high-end MOSFET, IGBT research and development and industrialization, products cover 30V~1500V voltage range, 10A~150A current range, and have entered the power supply, motor control and lithium protection market. According to the announcement, the company's power management product business has achieved a breakthrough in the automotive electronics market, LDO and LED driver chips have been sold in batches, IGBT products have been introduced into automotive ignition systems, vehicle air conditioners, etc., and the market share of power management chips in industrial control, communications and automotive electronics has continued to increase. In the aspect of new product research and development, we will increase the technical development of new power device structure and technological process, and lay out wide band gap semiconductor power devices such as SiC. In terms of market development, we will dig deep into the markets of consumer electronics, industrial control and automotive electronics, and expand server, frequency conversion and other automotive electronics applications.
Signal chain: rapid growth of high-speed / high-precision ADC, iterative upgrade of special chips for electric power. According to the announcement, the company's high-speed and high-precision ADC/DAC products are sold in small quantities in industrial control, medical imaging, power grid protection devices and other fields, and sample delivery and design import for a number of customers.
In terms of special chips for electric power, we have developed IR46 metering core SoC IoT solutions for the "dual-core" IoT market, and launched new sensor metering chips for the State Grid and Southern Power Grid 2021 standards. In April 2021, the bidding demand for smart meters of the State Grid was + 46.33% compared with the same period last year, and the company occupied the largest market share, and the metering core SoC was shipped in bulk. Overseas markets, smart meters are still in the stage of rapid development, the company's export orders soared in 2021, single-phase SoC chip sales reached a new high.
Investment advice: considering the uncertainty of non-operating profits, do not consider its profit contribution for the time being.
We estimate that the company's income from 2022 to 2024 will be 2.632 billion yuan, 3.395 billion yuan and 4.345 billion yuan respectively, and its net profit will be 555 million yuan, 723 million yuan and 898 million yuan respectively, maintaining the "buy-A" investment rating.
Risk hint: market competition aggravates the risk; new product research and development does not meet the expected risk.