\u3000\u3000 Hangzhou Silan Microelectronics Co.Ltd(600460) (600460)
The 12 inch production line is prospectively arranged, and the demand of new energy industries such as photovoltaic / automobile is growing rapidly. Hangzhou Silan Microelectronics Co.Ltd(600460) was established in 1997. The company’s 8-inch wafer production line was started in 2015 and put into operation in 2017, becoming the first IDM product company with 8-inch production line in China; In 2018, the company’s 12 inch characteristic process wafer production line and advanced compound semiconductor device production line started construction in Xiamen; As of the first half of the year, the total output of 12 inch chips has reached 57200. It is expected that the goal of monthly production of 35000 chips can be achieved in the year 21, and the production capacity of monthly production of 60000 12 inch round chips will be formed in the fourth quarter of 2022.
The layout of power simulation platform strategy and the optimization of product structure drive the company’s profitability to continue to rise. Under the characteristic process platform and the semiconductor framework, the company has formed semiconductor products of multiple technical categories. The products have cooperated with each other and combined with the design + process R & D ability to create a perfect product matrix; The company’s main products include discrete devices, integrated circuits and light-emitting diodes. 1) Discrete devices are widely used in new energy vehicle drives, industrial welding machines, motor inverters and other fields, benefiting from the trend of domestic substitution and the rising prosperity of new energy vehicles, and the rapid growth of demand space; 2) ACDC, MEMS, integrated circuit, etc; 3) While consolidating the market share of the company’s traditional LED color screen chips, LED will accelerate the R & D and customer expansion of flip chip Mini LED chip including high-density color screen and mini LED chip with LCD intelligent area backlight. Through continuous optimization of product structure, various businesses drive the company’s profitability to rise steadily.
Equity incentive covers thousands of core backbones, and the assessment goal continues for four years to demonstrate confidence in future development. In December 2021, the company announced the stock option incentive draft, granting 21 million A-share stock options to 2419 eligible incentive objects, with an exercise price of 51.27 yuan / share, accounting for 1.52% of the current total share capital. The incentive objects are the company’s senior management and core technology (business) backbone. They are the core strength of the company’s operation and development. The incentive plan is conducive to the company’s long-term development and the realization of its strategy and business plan; In addition, it also highlights the company’s information on future development. The assessment objective of equity incentive is based on the operating income in 2020, with the cumulative operating income growth rate of no less than 273% from 2021 to 2022, and continues to the fourth exercise period. Based on the operating income in 2020, the cumulative operating income growth rate of no less than 767% from 2021 to 2024.
Investment suggestion: the company continues to give full play to the advantages of IDM mode, and the release of production capacity and the optimization of product structure drive the continuous growth of the company’s performance. We expect the net profit attributable to the parent company from 2021 to 2023 to be 1.456 billion yuan, 1.577 billion yuan and 2.009 billion yuan respectively. According to the consistent prediction of wind and referring to the 22-year average PE of comparable companies, it is conservatively estimated that the company will be given 65 times, the corresponding market value is 102.505 billion yuan, the corresponding price is 72.39 yuan / share, and the buy rating will be given for the first coverage.
Risk warning: the downstream application demand is less than the expected risk, the new product development is less than the expected risk, and the supply chain risk
