\u3000\u3000 Hangzhou Silan Microelectronics Co.Ltd(600460) (600460)
On February 21, Hangzhou Silan Microelectronics Co.Ltd(600460) announced that it planned to increase 885 million capital to Shilan Jike (12 inch line) together with the second phase of large fund. After the capital increase, the shareholding ratio of large funds to the 12 inch line was 14.66%, and the shareholding ratio of Hangzhou Silan Microelectronics Co.Ltd(600460) increased from 15% to 18.72%.
The capital increase aims to accelerate the construction of Hangzhou Silan Microelectronics Co.Ltd(600460) 12 inch phase 2 production line, with a total capacity of 60000 pieces / month. The company originally planned that the production capacity of the first production line of Shilan Jike (12 inches) was 80000 pieces / month, of which the production capacity of phase I had reached 40000 pieces / month by the end of 21. The current round of capital increase price will be used for the technical improvement and expansion of 20000 pieces / month 12 inch production line. We expect that considering the ramp speed of phase 1 production capacity, the company’s 12 inches is expected to climb to 60000 pieces / month before the end of the year.
Production line scale effect + product structure upgrading appeared, and the profit margin of 12 inch production line increased. The announcement disclosed that in the first three quarters of 2021, the operating revenue of Shilan Jike was 433 million yuan and the net profit was – 119 million yuan. Referring to the revenue data of Shilan Jike subsidiary disclosed in the company’s interim report, the revenue of Shilan Jike in Q3 was 205 million yuan and the net profit was 4.23 million yuan. We believe that with the further improvement of the production capacity of the 12 inch production line, the scale effect appears, and the upgrading of the product structure produced by the company, the profit margin of the production line is expected to be further improved without new depreciation.
Large funds participate in the capital increase Hangzhou Silan Microelectronics Co.Ltd(600460) production line, and are optimistic about the prominent power leading position of the company. Shilan Jike, a 12 inch production line, is the first power semiconductor company invested by the large fund in phase II, highlighting the importance of the large fund to Hangzhou Silan Microelectronics Co.Ltd(600460) . At present, the demand for new energy vehicles and photovoltaic in the downstream of power semiconductor continues to burst, and the trend of short supply in the industry continues. With the accelerated promotion of domestic substitution, the company is ushering in the transformation of rapid product upgrading and customer upgrading. Especially for IGBT, with the rapid development of 12 inch production line, the company’s production capacity advantage is prominent, which fully benefits from the continuous shortage. At present, the company continues to make breakthroughs in the whole field of medium and low voltage, and the vehicle IGBT modules continue to be shipped in Huichuan, Byd Company Limited(002594) , Wuhan Lincontrol Automotive Electronics Co.Ltd(688667) , Zero run and so on. Photovoltaic wind power has cooperation with sunshine, Jiangsu Goodwe Power Supply Technology Co.Ltd(688390) and other mainstream manufacturers; In terms of household appliance IPM, it is comprehensively replacing Japanese manufacturers, with a revenue of 410 million yuan in 21h1 and will continue to increase in volume; In the field of industrial control, we have also increased cooperation and supply with Huichuan, Shenzhen Invt Electric Co.Ltd(002334) and others.
Investment suggestion: we expect the net profit attributable to the parent company in 2021 / 22 / 23 to be RMB 1.527/16.28/2.198 billion respectively, and the corresponding current price (closing price of 2022.2.22) PE to be 49 / 46 / 34 times respectively. We are optimistic about the progress of high-end upgrading of the company’s products, the steady progress of IGBT, MEMS and third-generation semiconductor businesses, and the growth potential is more worthy of expectation. Maintain a “recommended” rating.
Risk tip: cyclical fluctuation risk of the industry; The risk that the technical iteration is not as expected; The risk of capacity climbing and customer development falling short of expectations.
