Incident: On April 22, the company released its performance report for the first quarter of 2022: achieved operating income of 446 million yuan; net profit of Guimo was 144 million yuan; net profit of non-return mother was 93 million yuan, an increase of 22.58% over the previous year.
The product structure continues to be optimized, and multi-pole growth drives a steady increase in performance. The company focuses on integrated circuit chip design and product application development, and is positioned as a first-class analog and digital-analog hybrid integrated circuit supplier in China. It achieved net profit of 93 million yuan after deducting non-return to the mother in the first quarter, an increase of 22.58% over the previous year. The company closely follows the development trend of strategic emerging industries in the country, accelerates the pace of product structure adjustment, gradually extends and shifts to emerging consumer electronics, intelligent manufacturing, etc., strives to break through core technology, create independent safety core products, and continues to increase R&D investment. R&D expenses increased 51.82% year-on-year in the first quarter. The products are divided into power chain (power management, power device business) and signal chain (data converter, power special chip, IoT front-end, non-volatile memory, standard signal product business), and the scope continues to expand and enrich. In the power chain field, the company continues to promote research and development of new power device products, seize opportunities for the localization of power management chips. It is expected that the domestic power management chip market will continue to grow as demand for automotive electronic chips, smart city equipment and IoT linked devices continues to grow. In the signal chain field, technological innovation of standard signal products has been steadily promoted. The company's EEPROM memory products have continued to grow in high-end industrial control and have achieved zero breakthroughs in automotive applications. Downstream applications in the market are widespread, and the scale of the industry is growing steadily. According to IC Insight data, the global signal chain analog chip market will grow from $8.4 billion in 2016 to $11.8 billion in 2023, with a CAGR of about 5%.
Deeply cultivate the power management circuit and lay out the automotive electronics business in all aspects. Based on the existing market, the company has further improved its industrial layout, focused on developing product business in the pan-industrial market and the automotive electronics market, and continuously launched new industrial-grade products and car-grade products. At present, it has formed a complete supply chain and quality assurance system. 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 bulk, and IGBT products have been introduced into automobile ignition systems, vehicle air conditioners, etc., and market share continues to increase. A number of other power supply products have received intended demand from automotive electronics customers, and it is expected that sales will be achieved one after another this year. The company will continue to increase investment in new product development, actively lay out automotive electronics application fields, establish the company's automotive electronics R&D and quality management system, and increase the sales scale of vehicle grade EEPROM products, vehicle grade IGBT and vehicle grade power supply products. In order to meet the growing demand for automotive products and automotive electronic chips driven by new energy vehicles, the company will continue to make efforts in the automotive electronics market in the future to continuously increase the penetration rate of its products in high-end application fields such as industrial control and automotive electronics.
Investment advice: Considering the uncertainty of non-operating profits, its profit contribution will not be considered for the time being.
We expect the company's revenue from 2022 to 2024 to be 2,632 million yuan, 3.395 billion yuan, and 4,345 million yuan respectively, while the net profit of the mother is 555 million yuan, 723 million yuan, and 888 million yuan respectively, maintaining the “buy-A” investment rating.
Risk warning: Market competition increases risk; risk of new product development falling short of expectations.