\u3000\u3000 Wingtech Technology Co.Ltd(600745) (600745)
Core view
ODM + IDM double leading, upstream and downstream synergy. As a leading consumer electronics ODM enterprise, the company completed the acquisition of ANSYS semiconductor, a global semiconductor IDM leading manufacturer, in 2020 to enter the semiconductor field. In 2021, the company acquired Guangzhou Delta and arranged the field of optical modules. Its business covers the whole industrial chain of “upstream semiconductor + midstream module + downstream terminal”, and the synergy effect appears under the integration of resources.
The era of new energy vehicles has given birth to the great development of power semiconductor market. Under the trend of vehicle electrification, according to evtank data, the global new energy vehicle sales CAGR will reach 20.4% from 2021 to 2030, and the global new energy vehicle sales will reach 40 million in 2030. The value of power semiconductors per new energy vehicle will increase to about $330, accounting for nearly 58% of the plug-in hybrid and pure electric vehicle models. According to omdia data, the global power market will reach US $55.3 billion in 2024, an increase of 21.5% over 2019. As one of the world’s leading power semiconductors, Anson semiconductor will benefit from the era of new energy vehicles.
Power semiconductor leader, continuous optimization of product structure and continuous expansion of production capacity. After ANSYS semiconductor was acquired by Wingtech Technology Co.Ltd(600745) , its revenue increased rapidly. In the first half of 2021, its revenue reached 6.773 billion yuan, a year-on-year increase of 53.25%. The ranking of global power semiconductor companies rose from 11th to 9th. The product structure continues to be optimized. In the first half of 2021, the production capacity and item number of high margin products have been expanded, and there are more than 100 item numbers of MOSFETs above 100V. Silicon based gallium nitride power devices have been mass produced, and silicon carbide diode products have been sampled. In July 2021, the company completed the acquisition of Newport wafer factory in the UK and will gradually integrate it into the company’s IDM system. Newport FAB’s production capacity and process capacity in the fields of vehicle specification IGBT, power MOSFET, analog chip and compound semiconductor will be integrated with Anse semiconductor. In addition, the Shanghai Lingang Holdings Co.Ltd(600848) 12 inch vehicle gauge wafer project invested by the controlling shareholder of the company will also become an important source to support the expansion of the company’s semiconductor production capacity.
The proportion of ODM non mobile business will increase, which will promote the transformation of the company from a service-oriented company to a product-oriented company. With the increase of 5g mobile phone penetration and the sinking of 5g mobile phone price segment, the proportion of outsourced production of major mobile phone manufacturers has increased, and the company is expected to benefit directly. In addition, the proportion of the company’s non mobile ODM business is expected to increase significantly, opening up new growth space for ODM business. The integration of various businesses of the company will be further deepened, the core competitiveness of complete machine products will be comprehensively improved, and the transformation of the company from a service-oriented company to a product-oriented company will be promoted.
Investment advice
With semiconductor business as the core, the company will benefit from the growth of new energy vehicle market. Meanwhile, the deepening integration of Newport wafer factory will make an important contribution to semiconductor production capacity and technology. In the future, the integration of semiconductor, product integration and optical module business will be further deepened, and the company will become a technology product company led by semiconductor business. It is estimated that the revenue from 2021 to 2023 will be 54.149/73.140/91.376 billion yuan respectively, with a year-on-year increase of 4.72% / 35.07% / 24.93% respectively. The net profit attributable to the parent company was 3.041/4.352/6.416 billion yuan respectively, with a year-on-year increase of 25.92% / 43.08% / 47.45%, EPS was 2.44/3.49/5.15 yuan respectively, and the corresponding PE was 44 / 31 / 21 times respectively. “Recommended” rating for the first coverage.
Risk tips
The prosperity of semiconductor industry is lower than expected; The progress of M & A and integration of semiconductor business is less than expected; The smartphone market is less than expected; The penetration rate of new energy vehicles is lower than expected.