GigaDevice recently announced the release of the main operating data for January and February this year and the 2021 annual performance express. According to the announcement, the total operating income in 2021 increased by 89.25% year-on-year, and the net profit after deduction of non-attributable to the mother increased by 300.48% year-on-year. In the first two months of this year, the total operating income increased by about 49.22% year-on-year, achieving a good start in 2022.
The table below shows the key financial figures for the 2021 Results Express.
The company explained the reasons for the high growth of performance in 2021: Thanks to the forward-looking strategic layout and continuous research and development innovation, as well as the ability to respond to changes in market supply and demand, the company achieved rapid growth in operating performance in 2021, and revenue and profit increased significantly.
The increase in the Company's assets was primarily due to an increase in operating cash flow in the Company's cash reserves, new investments and investment appreciation, and an increase in inventories. The increase in share capital was mainly due to the implementation of the conversion of capital reserves into increased share capital in 2021.
For the 2021 performance, the agency believes that it exceeded expectations. For performance growth and development potential, Orient Wealth Securities said in its research report on March 17:
Due to the company's product line in Nor Flash, DRAM and other memory, consumption, industrial control, vehicle specification MCU, and sensor product layout is increasingly perfect, with strong market competitiveness, the agency is optimistic about the company's current chip supply chain tension pattern continues, terminal intelligent vehicles, Internet of Things equipment, industrial control and other new areas of demand and long-term development in the context of domestic substitution.
According to the company's profile, the company was founded in 2005 as a semiconductor company, the main business is memory, microcontrollers and sensors research and development, technical support and sales. The company's products are widely used in mobile terminals such as mobile phones and tablet computers, consumer electronics, Internet of Things terminals, personal computers and peripherals, industrial control equipment, automotive electronics, communication equipment, medical equipment, office equipment and other fields.
In terms of industry position, according to the company's profile, "in the domestic market, our SPI NOR FLASH market share is the first, and it is also one of the top three suppliers in the world."
In terms of research and development, according to the 2021 semi-annual report, in the first half of 2021, the company's R & D investment reached 400 million yuan, accounting for about 11% of operating income, compared with the same period in 2020 R & D investment increased by 75%. The company said that while launching a full range of products with technical and cost advantages, the company has accumulated a large number of intellectual property patents. Continuous investment in research and development is a strong guarantee for the company to improve its technical level and product competitiveness.
The company's existing products are mainly divided into memory products, microcontroller products and sensor products.
1. Memory products include flash memory chips (NOR Flash, NAND Flash) and dynamic random access memory (DRAM).
2. Micro Control Unit (MCU) is mainly based on ARM Cortex-M series 32-bit general-purpose MCU products, and the world's first 32-bit general-purpose MCU product based on RISC-V core launched in August 2019.
3, the sensor business is committed to a new generation of intelligent terminal biosensing technology independent technology innovation, focusing on the development of human-computer interaction sensor chips and solutions, currently providing embedded sensing chips, capacitive, ultrasonic, optical mode fingerprint recognition chips and self-capacitance, mutually tolerant touch screen control chips, widely used in a new generation of intelligent mobile terminal sensor modules, but also suitable for industrial automation, human-machine interface and Internet of Things and other areas that require intelligent human-computer interaction solutions.
In the highlights of the product structure, Minsheng Securities commented:
1. In 2021, the market demand for NOR Flash is strong, and the 2M~2Gb capacity vehicle specification grade NOR Flash is fully paved. In addition, the proportion of revenue of the company's 55nm node NOR Flash has continued to increase, and the 2021Q3 has reached 30%, and the cost has been continuously optimized.
2. The company's self-developed brand DRAM has been mass-produced in June 2021, with specifications of 19nm 4Gb DDR4 products. The self-developed product realizes the comprehensive localization from design, tape-out, to packaging, testing and verification, and is applied to set-top boxes, TVs, monitoring and other markets. The company's current planned products include DDR3/DDR4/LPDDR4, with a capacity of 1 to 8Gb, and it is expected to mass-produce 17nm DRAM chips this year. In addition, the company's vehicle-grade DRAM chip is also under development, and the product line is constantly enriched.
3, the company has so far 28 series of more than 370 products, and is still expanding the category, the latest car regulation MCU product is expected to be mass production around the middle of 2022, mainly for the entertainment system, the follow-up will be for the body, cockpit, power system and other fields of the development of different categories of MCUs, is expected to rise long-term revenue space.
The author inquires about the composition of revenue in recent years, which is divided according to the above product classification, and the situation is as follows.
As can be seen from the table, memory chip products are the company's main products, accounting for about 70% to 80%, while the proportion of microcontroller products has grown rapidly in recent years, and the proportion of interim reports in 2021 has reached 21.89%. In addition, the sensor business is also steadily advancing, and the 2021 mid-year report has increased significantly compared with the same period in the 2020 mid-report (6.56% vs. 5.49%).
On the news side, the Ministry of Industry and Information Technology released the key points of the 2022 automobile standardization work on March 18.
The document proposes to carry out research on the chip demand of automobile enterprises and the technical capabilities of the automobile chip industry, and jointly study and release the automotive chip standard system in related industries such as integrated circuits and semiconductor devices. Promote standard research and projects such as MCU control chips, sensing chips, communication chips, memory chips, security chips, computing chips, and special chips for new energy vehicles. Started the pre-research of general specifications and standards such as functional safety, information security, environmental reliability, and electromagnetic compatibility of automotive chips.
As we all know, the construction of the standardization system and the ecosystem is crucial to the industrial chain, and the same is true for the automotive chip industry chain. As Zou Guangcai, deputy secretary-general of the China Automotive Chip Industry Innovation Strategic Alliance, said earlier, the standard system is the technical language that connects and unifies the upstream and downstream of the industrial chain. Only when a standard system is established, the upstream of the industry knows what standards to design according to, and the downstream knows what standards to use chips.
At present, automotive chips have been widely used in power, body, cockpit, chassis and safety and many other fields. According to the China Association of Automobile Manufacturers, the number of new energy vehicle bicycle chips will exceed 1400 in 2022. Xu Yong, an analyst at Ping An Securities, said that domestic chip manufacturers themselves are making efforts, and power, MCUs, etc. are expected to take the lead in breakthroughs. As one of the important automotive chips and automotive electronics related companies (the core product line is memory, 32-bit general-purpose MCUs, etc.), Gigabit Innovation has also been recommended by the analyst.
In terms of market performance, as shown in the chart below, in the past year (as of March 18), GigaDevice has risen by 34.34%, significantly ahead of the Shanghai Composite Index (-5.64%), but lower than the industry index (50.38%).
According to Choice data, as of March 21, 26 institutions have rated GigaDevice. In the past week, 6 institutions have given ratings (see table below): 3 overweight and 3 buy. Combined with the target price range given by these 6 institutions: 190-212 yuan.
Author: Xu Yuanyao