Items:
On April 28, 2022, the company released its first quarterly report of 2022:
The company's 2022Q1 realized operating income of 305 million yuan, year-on-year-7.22%, gross profit 51.39%, year-on-year-0.29pct, net profit of 92 million yuan, year-on-year-27.96%, and non-return net profit of 85 million yuan,-20.72%.
Comments:
Mobile phone CIS business is under short-term pressure, and the increase in the mass production scale of automobile CIS is expected to lead to high performance growth. Affected by the decline in global smartphone shipments, the company's performance was under short-term pressure. 2022Q1 realized operating income of 305 million yuan,-7.22% year-on-year, gross profit of 51.39%, year-on-year-0.29pct, and net profit of 92 million yuan,-27.96%. Looking forward to 2022, the demand for mobile phones is expected to pick up gradually, the AIOT market such as security monitoring digital is expected to continue to grow, the demand in emerging fields such as medical care, VR/AR and industrial intelligence is booming, the pace of the company's automobile CIS production is advancing steadily, and the annual performance is expected to maintain steady growth.
The company's medium-and high-pixel products are gradually introduced into mass production, and the demand in the areas of security and mobile phones is expected to grow steadily. Frost & Sullivan estimates that the number of cameras carried on a single mobile phone will increase from 3.4 in 2019 to 4.9 in 2024, with the new cameras mainly in low and medium pixels. The company's technology has a comparative advantage in the field of low-and medium-pixel product packaging, and the company's future growth space has been opened as wafer-level packaging technology continues to break through the pixel limit. At the same time, the application scenarios of security monitoring are constantly enriching. As the leader of the CIS wafer-level packaging subdivision track, the company is expected to fully benefit from the high growth of the industry.
The company is actively expanding production, layout, automotive CIS and other emerging areas, binding high-quality customers to promote long-term development. The trend of automobile electrification and intelligence promotes the rapid growth of the demand for on-board cameras. Frost & Sullivan predicts that the automotive CMOS image market will grow from 2.02 billion yuan in 2020 to 5.33 billion US dollars in 2025, and the CAGR will be 21.42% in 2020-2025. The company is deeply bound with Howie, Sony Group Corp and other high-quality customers to maintain the industry leadership in automotive CIS mass production, and is expected to benefit from the outbreak of downstream demand in the future. In addition, with the gradual rise of new CIS application fields such as medical treatment, VR/AR, industrial intelligence and so on, the company has accumulated profound technology, and the new application field is expected to become a new growth point of business in the future.
Investment suggestion: as the leader of CIS wafer-level packaging subdivision track, the company has profound technology accumulation and high customer structure, and is expected to continue to benefit from the high growth of automotive CIS demand and the emergence of new CIS application scenarios. Considering the short-term pressure on mobile phone CIS business, out of careful consideration, we lowered the company's home net profit forecast for 2022-2024 from 1.342 billion yuan to 842 million, corresponding to 1.68 EPS and 2.56 yuan. Taking into account the company's historical PE valuation range and comparable company valuation, it will be given 25 times PE in 2022, with a target price of 41.99 yuan, maintaining a "push" rating.
Risk tips: mobile phones, security and other downstream areas are not as prosperous as expected; Sino-US trade frictions cause uncertainty; overseas outbreaks cause uncertainty.