Incidents:
The company released a performance forecast for the first half of 2022. It is expected to achieve operating income of 2-210 million yuan in the first half of 2022, an increase of 42.10%-49.19%; achieve net profit of 0.58-063 million yuan, an increase of 1732%-1890% over the previous year; and achieve net profit of 0.17-21 million yuan after deducting non-Gumo's net profit of 0.17-21 million yuan, compared with the same period last year.
Continuously adjust the product structure to achieve high performance growth
The company's performance exceeded expectations in the first half of 2022. The high growth in performance was mainly due to the company's continuous adjustment of the product structure, seizing industry development opportunities, and actively developing the market and customer household insurance around the country's major needs, automotive electronics and cloud security applications, etc., to overcome the epidemic.
Adhere to autonomy and control, seize opportunities for automotive electronics replacement
The company developed independent chip and module products based on open source RISC-V and PowerPC instruction sets, which are technically autonomous and controllable. In '21, it developed a 32-bit CPU core CRV4E based on RISC-V, and a 64-bit CPU core C10000 based on PowerPC. The two cores have passed complete verification and can be authorized for customers; according to IC Insights data, the global automotive MCU market size is 7.6 billion US dollars in '21. It is estimated that the global automotive MCU market will reach 11 billion US dollars in 26 years, 5 years The CAGR is 7.7%, and the automotive MCU market space is broad. The company's next-generation powertrain control chips and body/gateway control chips are in the streaming stage. Domain controllers and BMS controller chips are progressing smoothly. At the same time, they have also built a customer base dominated by well-known companies such as Weichai Power, Costar, and Atech. We believe that laying out the automotive sector will open up room for the company's long-term growth.
Profit Forecasts, Valuations, and Ratings
The company's revenue for 2022-2024 is 953/1662/2,62/2,624 yuan, respectively, with a year-on-year growth rate of 133.9%/74.4%/57.9%, and a 3-year CAGR of 86.12%; the net profit of the mother is 70.6%/41.8% respectively, and 0/C2A.G7R4/388 million in 1.36, with a year-on-year growth rate of 77%; EPS is 0.67/1.14/1.62 yuan respectively, and the PE corresponding to the 2022-2024 profit forecast is 72/42/30 times, respectively , maintaining the target price of 56.95 yuan and maintaining the “buy” rating.
Risk warning: Market competition intensifies; business performance fluctuates; iterative technology upgrades fall short of expectations; core technology leakage and brain drain.
