20220128-招银国际-韦尔股份-603501.SH-Solid_4Q__Well_poised_to_embrace_2022._Reiterate_BUY_4页_981kb

报告摘要

Willsemi (603501 CH) Company Update Summary

Core Content

Willsemi (603501 CH) reported its FY21 preliminary results, indicating a net profit growth of 65-80% YoY to RMB4,468mn-RMB4,868mn, with the mid-point of 4Q21 net profit at RMB1,150mn, representing 17% YoY growth and -10% QoQ growth. The actual FY21 net profit slightly exceeded forecasts by 0.3%. The company is expected to maintain strong growth in its non-mobile CIS business in FY22, which will be a key driver for future performance.

Main Points

Market Position and Growth Drivers

Mobile CIS: Despite the challenging Android smartphone market, Willsemi is optimistic about gaining market share in the RMB1k-2k/RMB3k+ models with the launch of 50MP/100MP/200MP products.
Non-Mobile CIS: The company's auto CIS, AR/VR, and security camera upgrade markets are expected to contribute significantly to future growth.
GPM (Gross Profit Margin): Non-mobile CIS has a high GPM, which is expected to improve profitability due to a favorable product mix.

Valuation and Investment Recommendation

Reiterated BUY with a target price of RMB346.60, based on a 50x FY22E P/E.
Potential Upsides:
- Better-than-expected global smartphone demand and 5G adoption.
- New killer apps in VR/AR that drive substantial device sales.
Potential Downside Risks:
- Worse-than-expected global economy that may curb consumer spending.
- Chip shortage leading to unfilled demand.

Financial Highlights (FY19A–FY23E)

Metric	FY19A	FY20A	FY21E	FY22E	FY23E
Revenue (RMB mn)	13,632	19,824	24,470	32,968	41,635
YoY Growth (%)	-	45.4%	23.4%	34.7%	26.3%
Gross Profit (RMB mn)	3,734	5,930	8,261	11,260	14,293
Gross Margin (%)	27.4%	29.9%	33.8%	34.2%	34.3%
Net Profit (RMB mn)	466	2,706	4,656	6,180	8,056
Net Profit Margin (%)	3.4%	13.7%	19.0%	18.7%	19.3%
EPS (RMB)	0.76	3.21	5.22	6.93	9.04
P/E (x)	345.4	81.8	50.3	37.9	29.1
P/B (x)	20.3	19.7	14.9	10.0	7.2

Key Financial Data

Earnings Summary

4Q21 Net Profit: RMB1,150mn (17% YoY growth, -10% QoQ growth)
EPS (4Q21): RMB6.93
Consensus EPS (4Q21): RMB6.89

Shareholding Structure

Yu Renrong: 30.32%
SX Weihao Equity Invest. FD: 9.23%
HKSCC: 6.55%

Stock Performance

1-month: -10.3%
3-months: 7.7%
6-months: -4.8%

Market Data

Market Cap (RMBmn): 229,878
52-week High/Low (RMB): 345 / 221.5
Total Issued Shares (mn): 875.7

Financial Summary

Cash Flow

Net cash from operating: RMB5,942mn (FY22E)
Capex: RMB-1,525mn (FY22E)
Net cash from financing: RMB2,672mn (FY22E)
Net change in cash: RMB7,125mn (FY22E)

Balance Sheet

Total assets (FY22E): RMB43,231mn
Total liabilities (FY22E): RMB19,481mn
Total equity (FY22E): RMB23,750mn

Key Ratios

Revenue by Segment

CMOS: 68.9% (FY21E)
TDDI: 1,756mn (FY21E)
Others: 5,853mn (FY21E)

Profitability

ROE (%): 26.0% (FY22E)
ROA (%): 14.3% (FY22E)
Net profit margin (%): 18.7% (FY22E)

Leverage and Liquidity

Debt/EBITDA: 1.5 (FY22E)
Interest coverage: 16.5 (FY22E)
Net debt/total equity (%): net (FY22E)

Analysts and Contact

Lily Yang, Ph.D.: (852) 3916 3716, lilyyang@cmbi.com.hk
Alex Ng: (852) 3900 0881, alexng@cmbi.com.hk
Lana Lin: (852) 3761 8912, lanalin@cmbi.com.hk

CMBIS Ratings

BUY: Potential return of over 15% over next 12 months.
HOLD: Potential return of +15% to -10%.
SELL: Potential loss of over 10%.
NOT RATED: Not rated by CMBIS.

Disclaimer

The report is for informational purposes only.
No individual investment advice is provided.
The value and returns of investments are uncertain and not guaranteed.
CMBIS disclaims liability for any loss or damage incurred from reliance on the report.
The information is subject to change without notice.
CMBIS may have conflicts of interest and may make transactions in the securities of companies mentioned in the report.