Samsung and Midea suppliers sprint GEM!The market share of Xinxiaxiaxia, a great increase in net profit or difficulty continues

With the inadequate state of the chip and the increasing industry competition, the high growth trend of core world in the first half of 2022 is not obvious

"Investment Times" researcher Li Lu

As one of the largest proportion of the integrated circuit industry, the storage chip played an important information storage function in various electronic systems, and is one of the most widely used electronic devices in the modern information industry. In recent years, with the development of emerging industries such as 5G communication, the Internet of Things, and wearable equipment, the global storage chip market demand has grown as a whole.

Xintianxia Technology Co., Ltd. (hereinafter referred to as Xintianxia) is a high-tech enterprise specializing in the development, design and sales of code-type flash chips. It provides a code-type flash chip from 1Mbit-8GBit wide capacity range. One of the more comprehensive manufacturers with product coverage. The main products of the company include NOR Flash and SLC NAND Flash, and have entered the supply chain system of well -known brand manufacturers such as Samsung, Midea, ZTE.

Recently, Xintianxia has completed the first round of review and inquiry reply, which is intended to land on the GEM. According to the prospectus, this IPO company plans to raise 498 million yuan, of which 168 million yuan is used for the research and development and upgrading and industrialization projects of NOR FLASH products, 140 million yuan for NAND FLASH product development and upgrading and industrialization projects, and 89 million yuan It is used to store the construction of the R & D center, and the other 100 million yuan is used to supplement liquidity.

In 2021, it can be called the golden one year of the world, and the company's revenue has doubled and net profit has risen. However, behind the high growth is the short -term supply of the industry and the small overall scale of the company and the low base of the market share. In addition, with the relief of the chip's inadequate state and the increasing industry competition, the company's high growth trend in the first half of 2022 has turned sharply. In addition, the company relies heavily on the top five suppliers, and at the same time there is a certain risk of inventory price decline.

In response to the aforementioned situation, the researcher of the "Investment Times" emailing the communication outline to the relevant departments of Xintianxia, ​​as of press time, has not received the company's reply.

High growth motivation or difficulty continues

According to the prospectus data, from 2019 to 2021 (hereinafter referred to as the reporting period), the operating income of Xinxiaxia was 249 million yuan, 335 million yuan and 790 million yuan, respectively, and the scale of revenue continued to expand. %. During the same period, the company's net profit was 33.41 million yuan, 2.5303 million yuan, and 213 million yuan, respectively. In 2021, net profit increased by more than 80 times year -on -year, and its profitability increased significantly.

From the perspective of gross profit margin level, the company's main business gross profit margin during the reporting period was 19.03%, 25.37%, and 45.31%, respectively, which was obvious.

Good performance has also attracted the company to many well -known investment institutions. In terms of equity structure, Sequoia Zhisheng holds 9.61%of the company's shares, and the SDIC and Entrepreneurship Fund holds 8.99%of the shares. Hongshen Hesun River Venture Capital and Shenzhen Venture Capital hold 6.73%and 3.48%of the company.

So, how can the company achieve high growth in 2021? Researchers browsing the prospectus and public information "Investment Times" noticed that the reason can be roughly divided into two aspects.

On the one hand, the market demand is beneficial to the tight supply of the chip industry. Since the second half of 2020, affected by various factors such as the new crown epidemic and international environment, some overseas national chip production capacity of larger chip production capacity is limited, and the global chip market capacity supply is tight.

At the same time, 5G base stations, wearable devices, automotive electronics and many other emerging markets have developed high -speed development, which brings a lot of market demand for the Flash series products as one of the main types of code -type flash chips, and the company's SLC NAND Flash product is 2021 The annual realization of SPI NAND production containing the wafer of the self -developed controller's wafer was mass -produced. In 2021, the revenue contributed by SLC NAND products to Xinxia increased by nearly 3 times year -on -year, accounting for 52.53%of the total revenue of the year. From NOR to SLC NAND.

On the other hand, the size of the world before 2021 was small, resulting in a small base for calculating growth rate. In fact, the company in the code type flash chip industry where Xintianxia is located benefited from the market status of "supply and in short". In 2021, it basically made a lot of money. The major reason is that the amount of the previous year is much larger than the world.

Taking industry leading enterprises as an example, the domestic storage chip leader Zhaoyi Innovation (603986.SH) in 2021 operating revenue was 8.51 billion yuan, an increase of 89.25%year -on -year, and net profit was 2.337 billion yuan, an increase of 165.33%year -on -year; The operating income of leading Dongxin (688110.SH) in 2021 was 1.134 billion yuan, an increase of 44.62%year -on -year, and net profit was 262 million yuan, an increase of 1240.27%year -on -year. In addition, according to data from Cinno Research, in the field of Nor Flash in 2020, Winbon Electronics, Wanghong Electronics, and Zhaoyi Innovation have a total market share of 64%. In contrast, the overall scale of the world is small and the market share is not high.

In addition, there is another phenomenon behind the rise of performance, which is worthy of attention, that is, the profitability of Xintianxianson Company. As of the signing date of the prospectus, Xintianxia has a total of four wholly -owned subsidiaries, namely Xinzhijia, Bor Micro Crystal, Hong Kong core world, and core world. However, all the four subsidiaries are in a loss state. In 2021, the net profit realized by the core of the core was -34.01 million yuan, the net profit realized by Bor micro-crystals was -16.109 million yuan, and the net profit realized by the world in the world was -890.57 The net profit realized by 10,000 yuan and Hong Kong core world is -29.61 million yuan. In addition, as of the end of 2021, the net assets of the world were -369,900 yuan, and the net assets of Hong Kong's core world were -42.802 million yuan.

Profit in the first half of the year decreased year -on -year

The "Investment Times" researcher saw from the inquiry reply from Xintianxia to supervision that in the first half of 2022, the company's gross profit margin decreased by 12.91 percentage points compared with the same period of the previous year. Among them 51%and 42%dropped to about 35%and 33%this year. It is not difficult to see that with the lack of chips, the supply and demand relationship of downstream markets tend to stabilize, and gross profit margin gradually returns to the normal level of the market.

At the same time, in the first half of 2022, the company realized a net profit of about 80.4756 million yuan, a year -on -year decrease of 8.65%. According to the explanation of Xintianxia, ​​the main reason is that the gross profit margin of the company has declined, and the growth of management costs, R & D expenses, and asset impairment loss have increased significantly.

Among them, the amount of asset impairment loss is worthy of attention. In the first half of 2022, the company's asset impairment loss was about 15.4353 million yuan, an increase of 14.215 million yuan year -on -year. Xintianxia said that due to the company's raw material wafers, the market capacity of the company is greatly affected, the procurement cycle is relatively long, at the same time, and the risk of slow sales is low. In order to respond to the rapid growth of the income scale The scale is to meet the potential needs of downstream market customers, which leads to a large scale for the company's raw material measurement of the raw material measurement of the company for more than one year. As of the end of June 2022, the raw material accounted for more than 70%of the company's inventory of more than one year. This part of the raw materials had been included in the inventory price decline of more than 14 million yuan.

In fact, the risk of the falling price of Xinxia in the entire report exists throughout the reporting period. The prospectus shows that at the end of each period of the reporting period, the balance of inventory prices in Xinxia was 20.5066 million yuan, 8.876 million yuan, and 12.092 million yuan, respectively, accounting for 12.72%, 7.77%, and 5.07%of the balance of inventory. With the increasing number of wafer inventory reserves, the company's inventory turnover rate has always been lower than the average level of the same industry.

It can be seen from the trend that has been presented in the first half of 2022 that the shortage of chips has been significantly relieved. At the same time, according to data released by China Communications Institute, in March 2022, the overall shipment of domestic mobile phone markets decreased by 40.5%year -on -year, consumer electronics The industry is in a downturn. The aforementioned two phenomena caused consumer electronics such as mobile phones, home appliances, and other consumer electronics to chip single -chip single, and the problem of chip inventory has become a problem worthy of attention. In the future, if the terminal market does not improve, it may cause a chip price war, which will lead to the continued decline in the company's profit.

According to the prospectus data, during the reporting period, the amount of the top five suppliers purchased from the top five suppliers was 218 million yuan, 189 million yuan, and 417 million yuan, respectively, accounting for 91.47%, 87.54%, and 75.70%of the current total procurement. The concentration of suppliers is high.

Xintianxia introduced in the prospectus that the company's main procurement types are wafer procurement and packaging test procurement. Due to the industry characteristics, the company considers the aspects of technological advancedness, supply stability, and purchasing costs. The company's supplier concentration is high during the reporting period.

Under such a procurement structure, the company may face the risk that suppliers cannot meet the company's needs due to factors such as strong demand for the integrated circuit market, insufficient increasing supply, or supplier's own reasons.

Xintianxia's profitability of the first quarter of 2022

Data source: company prospectus instructions

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