In 2022, revenue increased by 30% to 42% compared with the same period last year, and shipments of automotive chips increased more than tenfold. On February 28, the company issued a performance forecast with a preliminary estimate of operating income of 53 million to 5.8 million yuan (YoY30.10%~42.37%) in 2022. Among them, the sales revenue of customized chips has increased by a large margin, and the revenue in the field of advanced computing and storage has grown rapidly. The sales revenue of independent chips is basically the same as that of the same period last year, and the business of automotive electronic chips and cloud security chips is growing rapidly. in 22 years, the company's sales of automotive electronic chips reached more than 4 million, a year-on-year increase of more than 10 times. In addition, due to the impact of the epidemic in the fourth quarter of 22, the company has failed to obtain customer acceptance of a number of chip customization service projects, which will be postponed to 2023.

The net profit of homing in 2022 increased by 1% to 35% compared with the same period last year. In 2022, the company is expected to achieve a net profit of 7100,095 million yuan (YoY 1.13% + 35.32%), and to deduct a non-net profit of 20,019 million yuan (YoY-95.43% 56.62%). Compared with the last forecast, the company modified a certain intangible asset. Because the company authorized the customer the right to use the intangible asset in 2022 to form income, the book value of the intangible asset was converted into the cost of sales based on the principle of prudence. The final impact on after-tax profit and loss of 18.6 million yuan. Other reasons affecting profits are: 1) the company's financial revenue and government subsidies have increased significantly compared with the same period last year; 2) during the reporting period, the company revolved around high-end automotive electronic chips, highly reliable memory control chips and other fields. greatly increased the number of R & D personnel, improve the intensity of R & D, resulting in an increase of R & D expenses by about 57 million yuan compared with the same period last year. 3) during the reporting period, the production capacity of upstream wafer manufacturing and closed testing was tight, and the cost increased, resulting in a decline in the company's overall gross profit margin.

The layout of automotive chips is comprehensive, benefiting from the demand for domestic alternatives. The company has a long history of research and development in the field of automotive electronics, covering a more comprehensive product line, including body control, automotive powertrain control, automotive domain controller, new energy battery BMS control, specification-level safety MCU chip and other product series, downstream covering vehicle customers including BYD, SAIC, Changan, Chery, Dongfeng and so on. The company's PowerPC architecture instruction system CPU core is suitable for automotive ecology and occupies a high market share in the global automotive MCU. The company's products are expected to replace some of the middle and high-end chips of Infineon and NXP. In addition, the company also focuses on domestic alternative opportunities in the field of automotive electronic mixed signal and special SoC chips to start the research and development of automotive gated mixed signal chips, airbag ignition chips and new energy vehicle noise reduction SoC chips.

Investment suggestion: we are optimistic about the rapid release of the company's automotive specification-grade chips and give it a "buy" rating. We expect the company's 2022-2024 net profit to be 0.85 million RMB 0.85, with a year-on-year growth rate of 21%, 238%, 54%, 1.20 and 1.85 yuan, considering that the company's products and services are based on open source architecture and are independently controllable. At the same time, the company's performance has entered a period of high growth, so it is given a "buy" rating.

Risk hint: demand is not as expected, product development is not as expected, and customer introduction is not as expected.