Event comment

On March 31, Minde Electronics released its 2021 annual report, with revenue of 546 million yuan in 2021, an increase of 35.48% over the same period last year; net profit of 76 million yuan, up 47.54%; net profit of 49 million yuan, up 241.63% over the same period last year; gross profit margin of 28.22%, an increase of 0.6% over the same period last year; and net profit of 14.18%, an increase of 1.19pcts over the same period last year.

The whole industry chain of power semiconductors covers, and the "smart IDM" ecosystem builds the core competitiveness.

In 2021, the company's power semiconductor design business achieved an operating income of 70 million yuan, an increase of 163.31% over the same period last year, and a net profit of 10.78 million yuan, an increase of 648.61% over the same period last year. Since 2020, the company has successively held shares in power semiconductor design company wide Micro Integration, semiconductor wafer company Wafer Rui Electronics and wafer foundry company Zhejiang Guangxin Microelectronics, creating a "smart IDM" ecosystem, combining the advantages of IDM and Fabless, realizing the coverage of the whole power semiconductor industry chain, and fundamentally enhancing the core competitiveness of the company's power semiconductor business. Open the capacity ceiling for the sustained and rapid growth of the company's power semiconductor business. With the gradual expansion of the company's production capacity and the gradual enrichment of the product range, it will become the main contribution point of the company's performance increment in the future.

Deeply ploughing the bar code recognition industry, technology upgrading helps the company stabilize its leading position. In 2021, the company's information identification and automation product business achieved an operating income of 211 million yuan, an increase of 19.59% over the same period last year.

In 2021, the company effectively controlled costs, bar code identification products maintained a good gross profit margin, while overseas orders increased significantly over the previous year, resulting in a significant increase in the overall revenue and profit of the bar code identification business compared with the previous year. At present, the company's bar code identification equipment is widely used in the fields of information management and logistics automation products in retail, logistics, warehousing, medical and health, industrial manufacturing, e-commerce and other industries. The company continues to update iterative technology, some of the technical performance reached, close to the level of international leading enterprises, combined with its high-quality marketing network and customer resources to stay in the leading position.

Investment suggestion

In the future, the company will build a dual-industry growth curve around the development strategy of "ploughing bar code identification and focusing on power semiconductors". It is estimated that the company's operating income from 2022 to 2024 will be RMB 6.31 billion, respectively, with an increase of 15.45% / 148.92% and 42.43% respectively over the same period last year. The net profit of homing was 1.16 145.73 / 57.44% respectively, and the increase was 52.70% / 57.44%. EPS is 0.95 / 2.31 / 4.32 yuan respectively, based on March 31 closing price of 41.90 yuan, corresponding to PE is 47-20-12 times, maintaining the "highly recommended" rating.

Risk hint

The demand of the semiconductor industry is lower than expected; the progress of the company's product research and development is not as expected; the risk of intensified competition in the industry.