Fudan Micro Power announced its semi-annual report for 2022, with 22H1 revenue of 1.702 billion yuan, + 50.8% year-on-year, and net profit of 530 million yuan, + 173% over the same period last year. The company's 22H1 revenue and profits have achieved substantial growth compared with the same period last year, 22Q2 single-quarter profitability continued to enhance, maintaining the "overweight" investment rating.
Both 22H1 revenue and profit increased sharply compared with the same period last year, and the profit growth far exceeded the revenue growth rate. Company 22H1 income 1.702 billion yuan, year-on-year + 50.8%; return to the mother net profit 530 million yuan, year-on-year + 173%; deduction of non-return net profit 520 million yuan, year-on-year + 221%; company 22H1 equity incentive fee 73.7 million yuan. The company's 22H1 revenue and profits increased significantly compared with the same period last year, mainly due to the continuous expansion of the main product lines, the continuous introduction of new products and customers; the profit growth rate far exceeded the revenue growth rate, mainly due to the increase in the proportion of products such as FPGA/PSoC with high gross profit margin.
With the improvement of product structure and the continuous expansion of new products, the profitability of 22Q2 has been enhanced. 22Q2's single-quarter income is 927 million yuan, year-on-year + 47.9% / month-on-month + 19.4%; return-to-mother net profit 298 million yuan, year-on-year + 175.7% / month-on-month + 27.8%; deduction of non-return net profit 293 million yuan, year-on-year + 223.3% / month-on-month + 29.3% 22Q2 gross profit margin of 66.2% / month-on-month + 2.6ppts, net profit rate of 32.7% / month-on-month + 2ppts, enhanced profitability, mainly due to product structure improvement, new product expansion and price adjustment.
Security and identification chips: stabilize product prices and expand new areas 22H1 revenue is growing steadily. Security and identification are mainly based on smart card IC, including RFID and sensor chip. 22H1 earned 461 million yuan, + 23.6% year-on-year, including financial social security chips, logic encryption chips, high-frequency RFID tag chips and high-frequency reader chips. In terms of new products, ultra-high-frequency RFID chips, ultra-high-frequency read-write chips and security SE chips are expected to be mass produced one after another. FM1280 of smart cards and security chips and FM17 series of new intelligent devices have all obtained vehicle specification-level AEC-Q100 certification for T-BOX and digital keys.
Non-volatile memory: the prosperity of the downstream of 22H1 has declined, and the optimization of customer structure has brought steady year-on-year growth in revenue. The company's non-volatile memory includes NOR/SLC NAND/EEPROM, which covers 1Kb-4Gb. 22H1's revenue was 487 million yuan, + 33.8% compared with the same period last year, to a certain extent, affected by the decline in downstream prosperity, but on the one hand, the company's customer orders for highly reliable products increased steadily, on the other hand, it continued to improve product capacity and improve subdivision series, and its anti-cycle ability was improved to a certain extent. High reliability products are still growing high month-on-month in 22Q1, high reliability market is still in short supply, high reliable storage gross profit margin is high, is expected to contribute to storage product revenue and profit growth; the company's products have been introduced into Netcom, wearable, WiFi6, display industry leading customers, car regulation-level EEPROM is also shipped in BMS and other systems.
Smart meter chip: 22H1 revenue increased significantly compared with the same period last year, GM MCU is progressing smoothly. The company's smart meter chip mainly includes intelligent meter MCU, ultra-low power consumption MCU, real-time clock and power carrier chip.
22H1's revenue was 276 million yuan, a sharp increase of 179% over the same period last year, mainly due to mass production of new products and price adjustment. The company's MCU production capacity has increased to a certain extent, but it still does not fully meet customer demand. At the same time, the demand for 22Q2 meter products is expected to remain healthy during the peak season. The company's General MCU achieves mass production in public utilities, smart appliances, smart homes, new energy and other scenarios. The car gauge-level LG series MCU is certified by AEC-Q100, mainly used in the field of car body control, and 22H2 is expected to be mass produced.
FPGA/PSoC and other chips: demand for 22H1 has increased significantly, and revenue and share have increased significantly compared with the same period last year.
22H1 revenue was 378 million yuan, a sharp increase of 121% over the same period last year, accounting for 22.2%. Compared with the same period last year + 7ppts, the demand for 100 million-level FPGA increased significantly; the gross profit margin of FPGA/PsoC was significantly higher than that of other product lines (85% in 2021), and the proportion increased to increase the company's overall gross profit margin. In terms of product development, 28nm's 100 million-level FPGA continues to expand, and 14/16nm products continue to develop. At the same time, the company focuses on high-reliability areas, high gross margin FPGA;PSoC has smaller area and power consumption than FPGA, and is suitable for high computing scenarios. PSoC will achieve 10 million revenue in 2021, and customers and application scenarios will continue to expand in 2022.
Testing services: 22H1 revenue has declined year-on-year, and the follow-up is expected to increase the proportion of high-end IC testing business.
22H1 revenue of 100 million yuan,-7.5% year-on-year, mainly affected by the 22Q2 epidemic; the follow-up company will optimize the product structure and enhance the market position of high-end IC testing business, and revenue and profits are expected to increase steadily.
Investment advice. The demand for the company's high reliability and other products is strong, 28nm FPGA is in the stage of accelerated production and there is a huge room for domestic substitution in the future. considering the good business situation of each product line of the company and the increasing profitability, we estimate that the annual income on 22-23-24 will be 3359pm 3.942pm, and the estimated net profit for homecoming will be RMB 856995,1.36 million, corresponding to 1.05 EPS 1.22pm 1.39 yuan. The corresponding PE is 46.0 times as much as 61.1 Compact, maintaining the "over-holding" rating.
Risk tips: downstream demand decline, new product expansion is not as expected, product price adjustment, the risk of intensified competition in the industry.