Shanghai Beiling released its annual performance report for 2021: the company realized operating income of 2.024 billion yuan in 2021, an increase of 51.95% over the same period last year, and a net profit of 729 million yuan, an increase of 38.12% over the same period last year. The net profit was 398 million yuan, an increase of 124.31%.
Main points of investment
Signal chain and power business have increased, and profitability has improved compared with the same period last year.
According to the breakdown of products, the revenue of signal chain analog chip / non-volatile memory chip / power management chip / power device in 2021 is 4.90max 1.79max 6.54 / 102 million yuan respectively, an increase of 59.2%, 10.12%, 39.97%, 199.46% respectively over the same period last year. In addition, the revenue of integrated circuit trading business reached 536 million yuan in 2021, an increase of 73.56% over the same period last year. In terms of gross profit margin, the company's overall gross profit margin in 2021 was 34.13% (year-on-year + 5.19pct), of which signal chain analog chip / non-volatile memory chip / power management chip / power device gross profit margin was 42.54% (year-on-year + 7.98pct) / 37.53% (year-on-year + 8.53pct) / 42.49% (year-on-year + 10.29pct) / 24.18% (year-on-year + 6.66pct), respectively. In terms of period expenses, the expense rate (excluding R & D) during 2021 was 5.15% (year-on-year + 0.96pct), of which the sales expense rate was 2.67% (year-on-0.49pct), the management expense rate was 4.55% (year-on-0.54pct), and the financial expense rate was-2.07% (year-on-year + 1.99pct). In addition, the company's R & D expenditure in 2021 was 177 million yuan (+ 52.71% compared with the same period last year), and the R & D expenditure rate reached 8.73%.
Power chain and signal chain two-wheel drive, pan-industrial applications account for more than 50%
The company's IC business is subdivided into 2 categories and 7 product areas: 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). The main target markets are network communications, mobile phones, set-top boxes, LCD TVs, high-end and portable medical devices, security equipment, industrial control equipment, smart meters, smart wear, Internet of things, 5G, automotive electronics and so on. In 2021, the company's IC products accounted for more than 50% of the pan-industrial market.
Power chain: excellent product performance, rapid progress in gauge-level application. In the power management business, the company's products have excellent performance such as ultra-low noise, high PSRR and high voltage resistance, which can be used as a world-class simulation manufacturer and are widely used in the communications market. At the same time, the company's car specification-level LED Driver chip has been recognized by customers and is being sold continuously. Another LDO product that has passed the vehicle regulation certification in 2020 has been shipped in batches. In addition, a number of power products have been received by automotive electronics customers. Sales are expected to be realized one after another in 2022. For power devices business, the company has introduced advanced shielded gate power MOS, super junction power MOS and IGBT, which can cover 30V-1500V voltage range and 10A-150A current range, and have entered the market of power supply, motor control and lithium protection one after another, among which IGBT related products have been designed and introduced into mass production in terminals such as automobile ignition system and vehicle air conditioning.
Signal chain: high-speed and high-precision ADC increases greatly, and electric power metering SoC is the leader in the industry. In 2021, the company's high-precision ADC chips and matching high-precision reference chips have been widely used in the power protection and industrial control market, and the sales of high-speed and high-precision ADC/DAC have increased significantly in the whole year. In terms of special chips for electric power, the company has completed the comprehensive layout of the IR46 metering core SoC chip for the Internet of things (multi-core scheme) and the metering chip in the State Grid / Southern Grid 2021 upgrade table. The overall demand for smart meters invited by the State Grid increased by 46.33% in April 2021 compared with the same period last year, and the company accounts for the largest share of the completed inspection forms.
In addition, the overseas market of smart meters is in a stage of rapid development, with a sharp increase in export orders in 2021, and the sales of the company's single-phase SoC chips for the overseas market of smart meters hit a record high. According to the company's annual report, the global smart grid market is expected to reach US $61.3 billion in 2023, with a compound annual growth rate of 20.9%. Over the next five years, 248.4 million smart meters will be deployed in 50 emerging markets, with a total investment of about US $34.7 billion.
Acquisition of Silicon Tower Synergy main business, 2022 development strategy clear on March 29th, 2022, the company announced the purchase of 100% equity interest in Silicon Tower Technology with 360 million yuan. The core team members of Silicon Tower Technology are from TI. The main products include motor (DC motor, stepper motor, brushless DC motor) drive chip, gate drive chip, Hall sensor chip and so on. It is expected that after the completion of the merger and acquisition, it will have a synergistic effect with the controlling shareholder MCU of Huada Semiconductor, the company's main power management chip and MOS power devices, provide customers with a complete electrical control drive system solution, and further improve the company's IC business ecological chain. At the same time, Silicon Tower Technology promises that the cumulative audited net profit (after deducting non-recurring profits and losses) in 2022-2024 will not be less than RMB 90 million.
Looking forward to 2022, the company's development strategy is clear: 1) increase R & D investment in high-speed and high-precision ADC/DAC, high-performance power management chips, 650V/1200V IGBT, Internet of things energy sensing chips, integrated metering core SoC tables, storage products and standard signal chains; 2) omni-directional layout of product business in the field of automotive electronics to improve the sales scale of EEPROM, IGBT and power products. 3) strengthen strategic cooperation with wafer generation factories and packaging plants / strengthen talent team building / seek extension development opportunities around the main business.
Profit forecast
It is predicted that the income of the company from 2022 to 2024 is 27.33,36.05,4.577 billion yuan respectively, and the EPS is 0.96,1.13,1.35 yuan respectively. The current stock price corresponding to PE is 21,18,15 times respectively, giving "recommended" investment rating.
Risk hint
The downside risk of the prosperity of the industry, the risk that the progress of product research and development is not as expected, the risk of intensified competition in the industry, the risk of overseas policy changes, and so on.