\u3000\u3000 Hangzhou Silan Microelectronics Co.Ltd(600460) (600460)
Event:
The company issued the announcement on jointly increasing capital to Shilan Jike and signing agreements and related party transactions with big fund phase II.
Comments:
The company joins hands with the large fund to inject capital into Shilan Jike, and plans to increase the registered capital by 827 million yuan. The company plans to make a joint contribution of 885 million yuan with the second phase of the large fund and subscribe for the newly increased registered capital of 827 million yuan. Among them, the company plans to invest 285 million yuan and the second phase of large fund plans to invest 600 million yuan. After the capital increase, the registered capital of Shilan Jike will increase from 3 billion yuan to 3.828 billion yuan, and the equity structure will change into 66.63% of Xiamen semiconductor, Hangzhou Silan Microelectronics Co.Ltd(600460) 18.72% and 14.66% of the second phase of large fund.
The capital increase continued to improve the capital adequacy ratio of Shilan Jike and accelerate the construction and operation of the 12 inch line. Shilan Jike is a project company jointly invested and established by the company and Xiamen semiconductor in accordance with the investment cooperation agreement on 12 inch integrated circuit manufacturing production line project. The capital increase price will be used for 240000 12 inch high-voltage integrated circuits and power device chip technology improvement and production expansion projects, accelerate the construction process of 12 inch line and help Shilan Jike continuously improve its production capacity.
The production capacity of 12 inch line is scarce, and the production capacity of Shilan Jike in 2022q4 is expected to reach 60000 pieces / month. In December 2020, the first 12 inch production line of Shilan Jike was officially put into operation. In June 2021, the production capacity of Shilan Jike’s 12 inch line reached 14000 pieces / month, with the goal of realizing the production capacity of 35000 pieces / month by the end of 2021. In order to further improve the production capacity of the 12 inch line, in May 2021, Shilan Jike started a new 12 inch line expansion project with an annual output of 240000 pieces, and further increased the investment in the 12 inch chip production line. The company expects that the production capacity of the 12 inch line of Shilan Jike in 2022q4 is expected to reach 60000 pieces / month.
Profit forecast:
We expect the company’s revenue in 2021, 2022 and 2023 to be RMB 7.344/98.10/12.182 billion respectively, with a year-on-year increase of + 71.56% / + 33.58% / + 24.18%; The net profit attributable to the parent company was RMB 1.520/1.372/1.609 billion respectively, with a year-on-year increase of + 2147.97% / – 9.71% / + 17.24%, corresponding to 43 / 48 / 41 times of the share price PE on February 21, maintaining the “buy” rating.
Risk tips:
The construction and production line expansion are not as expected.
