Main points of investment
Recently, Yachuang Electronics released the third quarterly report of 2022, the prosperity of the automotive electronic racetrack is not reduced, the company through the continuous development of product numbers, performance to maintain rapid growth. During the reporting period, the company achieved an operating income of 1.627 billion yuan, an increase of 65.87% over the same period last year, and a net profit of 119 million yuan, up 116.87% over the same period last year. In a single quarter, Q3 achieved a revenue of 650 million yuan, an increase of 84.50% over the same period last year, and a net profit of 42 million yuan, an increase of 90.03% over the same period last year. The cost was affected by exchange rate fluctuations, and the overall performance was in line with previous expectations.
The business situation remains sound. The gross profit margin of 2022Q1-3 was 20.64%, up 2.26 pct from the same period last year; the net profit level was 7.84%, up 2.25pct from the same period last year. From the expense point of view, affected by the rapid expansion of business, the company's three fees and expenses increased slightly, totaling 8.70%, up 1.45pct from the same period last year and improved month-on-month. The company continued to increase R & D investment, with a total R & D investment of 33 million yuan in the first three quarters, an increase of 19.92% over the same period last year. The company's capital structure improved, and the asset-liability ratio in the first three quarters was 44.16%, down 4.00 pct from the same period last year. Operating capacity remained stable, but affected by the epidemic, the company's inventory turnover fell slightly to 5.36 times in the first three quarters; the turnover of accounts receivable was 117.45 days, compared with 118.30 days in the same period last year, and the account period was slightly shortened.
Convertible bonds to raise 400 million, continue to develop automotive electronics. The company plans to invest 136 million yuan in automotive analog chip research and development and industrialization projects, and 264 million yuan in Yachuang Automotive Electronics headquarters base. Among them, the automotive analog chip R & D project plans to further expand the company's vehicle specification-level analog chip R & D team, introduce senior technical personnel in the industry, enhance the company's R & D strength from both hardware and software, and continue to expand product models. in order to obtain more market space and promote the company's long-term sustainable development. The construction of the automotive electronics headquarters base will help to meet the operation and management space brought by the expansion of the company's production and operation scale in the future, strengthen the internal management information construction, and further improve the company's business operation efficiency.
The localization rate of automobile analog chip needs to be improved urgently. According to IC Insights data, the global automotive analog chip market is expected to reach US $13.775 billion in 2022, an increase of 17% over the same period last year, and will become the fastest growing direction of all downstream applications of analog chips. According to data from the China Semiconductor Association, the self-sufficiency rate of analog chips in China has been increasing in recent years, rising from 6% to 12% from 2017 to 2020, but it is still at a low level, of which the self-sufficiency rate of automobile analog chips is less than 5%. There is still a very broad room for domestic substitution. As an automobile IC designer who has been able to independently design IC, pass AEC-Q100 certification and use in batches on the whole vehicle, the company has a certain first-mover advantage and is expected to fully benefit from the development of automotive electronics localization.
[investment advice]
With the continuous improvement of the degree of automobile electrification, intelligence and networking, the bicycle value of electronic components continues to rise, the demand for specification-level components with motor vehicles is growing rapidly, and the prosperity of the industry is high. We maintain the original profit forecast, and expect the company's operating income in 2022, 2023, and 2024 to reach 2.256, 2.985, and 38.96 billion yuan in 2024. Affected by the accelerated volume of self-developed IC business, the superimposed high-margin power management IC effectively optimizes the product structure, and is expected to return to the mother net profit of 1.800.900.49 million yuan, EPS respectively 2.25cusp 3.63cusp 5.61 yuan, the corresponding PE is 30-18-12 times. Taking into account the continuous outbreak of self-research PMIC business, the continuous development of product numbers, broad room for future growth, maintain the "buy" rating.
[risk Tip]
Risk of global wafer manufacturing capacity shortage
Risk of demand decline in automobile market
Impact of exchange rate fluctuations
Risk of technology development and iterative upgrade.
