Event
The company released the 2021 Q1 performance report, Q1 achieved revenue of 408 million yuan in 2021, an increase of 124.24% over the same period last year, a small increase compared with the same period last year, and realized a net profit of 69 million yuan, an increase of 2424.30% over the same period last year, and an increase of 76.92% over the 39 million yuan of Q4 in the single quarter of 2020.
The product structure has been continuously optimized, with a gross profit margin of more than 35%.
While keeping the lead of the existing LED lighting driver chips, the company develops built-in AC/DC power chips and external AC/DC power chips used in large and small household appliances. We believe that the continuous optimization of the company's product structure is expected to lead to a gradual increase in the level of comprehensive gross profit margin. Q1's gross profit margin in 2021 was 37.37%, 11.53 percentage points higher than Q4 in 2020, the highest since 2017. Intelligent LED lighting is still in the initial stage of penetration, with the rapid development of smart home driven by graffiti, millet and other enterprises, the company's demand for intelligent LED driver chips will gradually increase. The company ploughs the power management chip industry, constantly enriches the product structure, and lays a solid foundation for the company's long-term development. From the perspective of R & D investment, the company's R & D investment in 2020 was 158 million yuan, an increase of 132.78% over the same period last year. In addition, since the company went public, it has launched multi-period equity incentives to continuously strengthen the construction of talent echelons. We believe that for IC design company, excellent talent and leading technical level are the key factors for long-term development, while product diversification is the top priority for the growth of a simulated IC company.
Consolidate technological advantages, ensure product delivery capacity under global capacity shortage since 2020 due to the surge in demand for automobiles and consumer chips, the balance between supply and demand of wafer capacity has been broken, and 8-inch and 12-inch wafers worldwide are in short supply. at the same time, it has led to the capacity shortage of other upstream supply chains. In 2020, the company completed the research and development of the fifth generation BCD-700V process platform to further reduce the effective use of finished products to enhance wafer productivity. Based on its own platform, the company can coordinate among different suppliers according to the overall capacity demand and the actual situation of different wafer factories, and will not be limited by a specific upstream manufacturer because of process problems. At the same time, with the technical support of its own platform, the company can import new wafer suppliers more quickly to meet the growing needs of raw materials brought about by the continuous expansion of the business scale.
Investment suggestion
Based on the improvement of the prosperity of the industry and the continuous introduction of new products, the market competitiveness and comprehensive gross profit margin have improved significantly, and we have adjusted our previous profit forecast. we expect the company's revenue from 2021 to 2023 to be 1.68 billion yuan, 2.25 billion yuan and 3.05 billion yuan respectively (the previous forecast data for 2021 and 2022 are 1.58 billion yuan and 2.08 billion yuan, respectively). Realize the net profit of 328 million yuan, 422 million yuan and 575 million yuan (the previous forecast data for 2021 and 2022 are 234 million yuan and 293 million yuan respectively). In view of the fact that the company is the leading power management chip enterprise in China, the product structure continues to be optimized. it is optimistic that the company has a wide range of long-term products and continuous breakthroughs in high-end products, and maintain its buying rating.
Risk hint
Overseas epidemic control is lower than expected; LED lighting export data is lower than expected; the company's product innovation is lower than expected; competitiveness is weakened and so on.