Incident: The company released its 2022 annual report. According to the announcement, the company achieved operating income of 2,044 million yuan in 2022, an increase of 0.98%; achieved net profit of 399 million yuan, a decrease of 45.29% over the previous year; and achieved net profit of 330 million yuan after deducting non-return to the mother, a year-on-year decrease of 16.93%.
Demand for terminals in the consumer market is weak, and we are deepening our competitive circuit to strengthen product upgrading.
According to the report, the company achieved revenue of 2,044 billion yuan in 2022, an increase of 0.98% over the previous year. Affected by rising inflation, demand in the global semiconductor terminal market has weakened. In particular, the consumer market has weakened, and there has been a cyclical recession. According to data from the National Bureau of Statistics, China's integrated circuit production in 2022 was 324.19 billion yuan, a year-on-year decrease of 9.8%. This is the first decline since 2009. The company's integrated circuit product business focuses on the field of analog integrated circuit products. The company's product business is distributed into two categories: power chain and signal chain. Power chain: step-down DC-DC products have achieved technological breakthroughs in the direction of high current; launched a number of advanced grooved gate cut-off IGBTs, shielded gate power MOSFETs, and super junction power MOSFET products, covering various segments of the 30V to 1500V voltage range and 5A to 300A current range; developing general standard series products for motor drives, gate drives, and Hall sensors; medium and high voltage step-down DC-DC products achieved breakthroughs in the communications, home appliances, security and electricity meter markets, introducing 20 new products to many production benchmark customers; success volume: 20 new products The product range covers medium and high voltage motor drives, 600V pre-drivers and 70V pre-driver series, three-in-one special products, accumulated IP with completely independent intellectual property rights, and applied for more than 10 layout registration certificates and software registration certificates. Signal chain: High-speed and high-precision ADC/DAC products have achieved mass sales in the fields of industrial control, medical imaging, power grid protection devices, etc., and have continued to expand customers to promote product design and introduction; completed the upgrading and testing of single-phase metering chips and three-phase metering chips, as well as the upgrading and revision of power-specific MCU chips; charging pile energy consumption monitoring chips are gradually being promoted to four-wheel electric vehicle on-board chargers, AC charging piles, and DC charging piles markets; the market share of interface products has steadily increased, and in the domestic smart meter field, it has become the company's main interface product interface supply Business, in the field of industrial control and home appliances, the company's interface products have been shipped in batches to leading companies in the industry.
Optimize the industrial layout and accelerate the transformation and upgrading of products into the fields of industrial control and automotive electronics.
During the reporting period, the company closely followed the development trends of the country's strategic emerging industries, adjusted the product structure, and accelerated the technical layout and upgrading for industrial and automotive applications. Power chain: Focus on developing power management chips applied to the automotive lighting field, focusing on serial development of LDO and LED driver products. A number of products have been introduced into car manufacturers to achieve batch supply, and a number of automotive-grade power management products have also been established and developed; the motor drive product business mainly targets industrial control in the short to medium term, taking into account product support in the automotive field, and strives to enter the automotive electronics field within 1-2 years; power MOSFET related products have successfully achieved a large number of end customers such as motor control. IGBT related products have been successfully implemented in automotive ignition systems, vehicles, etc. Terminals such as air conditioners and photovoltaic inverters were sold in bulk. Signal chain:
A series of EEPROM products with standards such as SPI and Microwire, which are mainly used in automotive and other fields, have been designed. Industrial-grade EEPROM products can be erased up to 4 million times at room temperature. A number of mainstream capacity car-grade EEPROM products are undergoing A1-grade AEC-Q100 verification and assessment, and some products have already passed the assessment and are delivered in batches; the company has successfully launched new products such as nano-power operational amplifiers, two-channel/four-channel high-wideband analog switches, etc., and many new products are being developed. Product lines including CAN FD transceivers, next-generation RS485 transceivers, amplifiers, high-voltage analog switches, etc., continue to meet customer needs in the fields of automotive electronics, industrial control, etc.
Investment advice: We expect the company's revenue from 2023 to 2025 to be 2,576 billion yuan, 3.323 billion yuan, and 3.721 billion yuan respectively, while the net profit of the mother is 501 million yuan, 651 million yuan, and 701 million yuan respectively, maintaining the “buy-A” investment rating.
Risk warning: Industry competition intensifies; demand falls short of expected risks.