\u3000\u3000 Hangzhou Silan Microelectronics Co.Ltd(600460) (600460)
[matters]
Large funds increase capital in Shilan Jike at a premium. Hangzhou Silan Microelectronics Co.Ltd(600460) plans to invest 285 million yuan and 600 million yuan (885 million yuan in total) respectively in monetary form with the second phase of the large fund to subscribe for the new registered capital of Shilan Jike of 267 million yuan and 561 million yuan (827 million yuan in total). After the capital increase, the proportion of shares held by Hangzhou Silan Microelectronics Co.Ltd(600460) in Shilan Jike will increase from 15% to 18.72%, and the proportion of shares held by the second phase of the large fund will be 14.66%.
[comment]
The capital increase provides stable capital guarantee for the expansion of 12 inch production line. Shilan Jike production line is a 12 inch characteristic process semiconductor chip manufacturing line. The planned production capacity of the first production line is 80000 pieces / month. The total investment of the first phase of the project is 5 billion yuan and the monthly production capacity is 40000 pieces. In May 2021, the “technology improvement and expansion project of the first 12 inch line with an annual output of 240000 pieces of 12 inch high voltage integrated circuits and power device chips” was launched, This capital increase provides stable financial support for the new 20000 piece monthly production capacity.
Infineon sent a letter indicating that the industry is in a high business cycle and may accelerate the process of domestic substitution. Infineon sent a letter to dealers, saying that the global power semiconductor industry will continue to face tight supply and demand in 2022, and the company is unable to bear the rising costs. In order to cope with the strong demand, especially the shortage of automotive chips, Infineon’s asset investment will reach 2.4 billion euros in 2022 (1.1 billion euros and 1.6 billion euros in 2020-2021 respectively), and will make large investment at an annual growth rate of 50% from 2022 to 2023 to expand production capacity to meet the rapid development of downstream customers. Infineon products are in short supply, or will give priority to ensuring the needs of major customers and local customers. China power semiconductor company may usher in a golden development period, and its market share in China is expected to further improve, so as to accelerate product polishing and iteration. We expect that power semiconductor will continue to have a high outlook in 2022, Hangzhou Silan Microelectronics Co.Ltd(600460) as one of the leading companies in China’s power semiconductor industry, Or will benefit more.
Profit forecast. We believe that as China’s power semiconductor IDM company, IPM module takes the lead in entering the white power market, with continuous capacity expansion plans, gradual ramp up of 12 inch line capacity, superposition of the company’s early layout of compound semiconductors, continuous optimization of product structure and timely superposition of equity incentives. Under the background of high prosperity of power semiconductor industry, the company may fully benefit. It is estimated that the company’s revenue from 2021 to 2023 will be 7.19/93.5/12.15 billion yuan, the net profit attributable to the parent company will be 1.52/15.3/1.71 billion yuan, the EPS will be 1.07/1.08/1.21 yuan / share, and the PE corresponding to the current stock price will be 49.13/48.87/43.62 times, giving the company a “overweight” rating.
[risk tips]
The climbing of 12 inch production line is less than expected, the industry competition is intensified, and the R & D is less than expected.
