High-quality companies are growing at a high speed, and their performance is much higher than expected.
On August 27, 2021, the company released its semi-annual report of 2021. The operating income of 2021Q2 was 590 million yuan, an increase of 90.79% over the same period last year, an increase of 37.53% over the same period last year, and a non-return net profit of 124 million yuan, an increase of 182.40% over the same period last year and an increase of 63.16% over the same period last year. Considering that the company's power management chip, ADC chip and intelligent metering chip are in the rapid release period, and the persistent impact of the 5.93% stake in Xinjie Neng on the investment income, we maintain the profit forecast. The company is expected to earn 100 million yuan in 3-2-2 respectively in 2021-2023, and the homing net profit of the company in 2021-2023 is estimated to be 754 million 882 million yuan respectively. The corresponding EPS is 1.07 pound 1.25 pound 1.63 yuan, and the current share price corresponds to 30.5 pound 26.0 pound 20.0 times, maintaining the "buy" rating.
Downstream demand is highly prosperous, and many business lines are outstanding.
2020H1's power management, intelligent metering, non-volatile memory and ADC/DAC business line are outstanding. In the power management business line, 2021H1 has achieved technological breakthroughs in automotive electronics, communication base stations, memory, PD power, etc., and the sales of this business line have increased by about 105% compared with the same period last year. In the smart metering business line, 2021H1's Internet of things metering chips have achieved a substantial increase in sales in smart home and electric bicycle charging pile applications, and the sales of this business line have increased by about 43% compared with the same period last year. In the non-volatile memory business line, 2021H1's sales in the non-mobile camera module market increased significantly, and the sales of this business line increased by about 52% compared with the same period last year. In the ADC/DAC line of business, the company's high-speed ADC/DAC products are sold in small quantities in industrial control, medical imaging, power grid protection devices and other fields.
The holding subsidiary has a bright performance, actively responding to market competition and production capacity crisis. Hong Kong Haihua and Nanjing Weimeng, the holding subsidiaries of 2021H1, achieved revenue of 272 million yuan and 251 million yuan respectively, both reaching the annual revenue level of nearly 2020. (note: Hong Kong Haihua and Nanjing Weimeng achieved revenue of 309 million yuan and 304 million yuan respectively in 2020) with the intensification of competition for high-quality resources and high-quality market by domestic semiconductor companies, the company is still in the period of upstream capacity shortage, the company promotes the high-end transition of power management, intelligent metering and ADC/DAC, with emphasis on capacity support for power management, intelligent metering, non-volatile memory and power devices.
Risk hints: there is a risk of continuous tightening of upstream production capacity, and there is great uncertainty about the speed of customer introduction.