Overview of events
According to the preliminary calculation of the financial department, the net profit attributed to the shareholders of the listed company in 2020 is expected to decrease by 204 million yuan to 220 million yuan compared with the same period last year. 81% to 87% of the net profit attributed to the shareholders of the listed company in 2019 Corresponding to the net profit of 32 million yuan ~ 48 million yuan belonging to the shareholders of the listed company in 2020. The main departments are 1) the new Wi-Fi products have not yet reflected the scale effect, and the gross profit margin level is expected to increase gradually in the future; 2) Bluetooth audio products to increase the market share pull down the company's overall gross profit margin level to a certain extent.
With the continuous iteration of new products, the comprehensive gross profit margin is expected to increase gradually.
The initial iteration of new and old products has an impact on the company's gross profit margin, the demand of the ETC afterloading market slows down in 2020, and the ETC pre-installed chip device is supported in 2021. At present, the company's related products have completed the vehicle specification test certification, and have achieved mass production and sales, which is expected to become one of the company's new performance growth points in the future. At the same time, the quarterly sales revenue of the company's Wi-Fi chip products has increased rapidly since 2020, but the related products are still in the climbing stage of improving operational efficiency, and the scale effect has not yet been realized. As the company takes the lead in launching Wi-Fi 6 new products in the IoT field of the Internet of things, the sales revenue and gross profit margin of Wi-Fi series products will continue to increase. In addition, in the Bluetooth audio business sector, in order to cope with product competition and increase market share, the company adopted a competitive price strategy for the previous generation of Bluetooth audio chip products in 2020, and the gross profit margin of related products was low. pulled down the company's overall gross profit margin. We believe that with the continuous introduction of new products and iteration of old products, the level of comprehensive gross profit margin is expected to increase gradually.
Strengthen R & D investment, acquire Greek team to strengthen wireless transmission product layout, the company continues to iterate and increase the number of new product R & D personnel, and the company acquired Greece Adveos in 2020, further strengthening the company's competitiveness in the field of wireless transmission products such as Wi-Fi. In the past two years, the demand for WiFi chips in smart home, smart city and other areas of the Internet of things has increased, and China's WiFi chip shipments have rebounded. At this stage, the chip shipment that supports WiFi 6 standard is still in its infancy, and with the gradual application and promotion of WiFi 6 standard, it is estimated that in 2023, chips that support WiFi 6 standard will account for 90% of the total WiFi chips, and there is plenty of market space. According to the announcement of December 25, 2020, Eneng Industries paid 67 yuan per transferee for 8.34 million shares. According to the announcement of January 12, 2021, the company has set an additional issue price of 65.00 yuan per share and issued 11.7114 million shares, of which the company's existing shareholder, Shanghai Wuyuefeng Integrated Circuit Equity Investment Partnership (limited partnership), holds 3.74 million shares of the issuer, accounting for 2.70% of the total share capital before this issue. According to the simplified equity change report disclosed by Shanghai Zhineng Industrial Electronics Co., Ltd., Shanghai Wuyuefeng Integrated Circuit Equity Investment Partnership is a concerted actor of Shanghai Zhineng Industrial Electronics Co., Ltd. Therefore, after Shanghai Zhineng Industrial Electronics Co., Ltd. has completed the registration of this issue and the previously agreed transfer of shares, those acting in concert with it will hold a total of 18.23 million shares of the issuer, accounting for 12.12% of the total share capital after the issue.
Investment suggestion
Based on the reduction of the company's ETC afterloading chip shipments, the fierce competition for the Internet of things related products and the decline in the comprehensive gross profit margin of the old products, we adjusted our previous profit forecast and estimated that the company's revenue will be adjusted from 883 million yuan, 1.267 billion yuan and 1.825 billion yuan to 830 million yuan, 1.25 billion yuan and 1.75 billion yuan in 2020-2022. It is estimated that the net profit attributed to the shareholders of the parent company will be adjusted from 104 million yuan, 247 million yuan and 402 million yuan to 41 million yuan, 183 million yuan and 253 million yuan. We maintain our previous "overweight" rating.
Risk hint
The development of the semiconductor industry is lower than expected; the company's technological innovation is lower than expected, resulting in lower-than-expected breakthroughs in new products; downstream application expansion and customer expansion are lower than expected.