Wuxi Nce Power Co.Ltd(605111) (605111)
event:
The company issued the 2021 restricted stock incentive plan (Revised Draft).
comment:
Equity incentive binds core talents and enables the company’s long-term development. The incentive company plans to grant 1416800 restricted shares, accounting for about 1% of the total share capital of the company at the time of announcement of the incentive plan. The incentive objects include 141 directors, senior executives, core technicians and business backbones of the company. The performance assessment target is that the total operating revenue of the company in 2022 and 2023 will not be less than 1.6 billion yuan and 1.8 billion yuan respectively.
IGBT is a difficult subdivision of power semiconductor, and the company’s R & D team continues to expand. In 2021, the company will further increase R & D investment, actively expand R & D team, and continuously cultivate high-end technical talents through external introduction and independent training. As of June 30, 2021, the company’s R & D personnel have increased from 71 at the end of 2020 to 79, and doctoral talents have been introduced to further strengthen the development of automotive electronics and semiconductor power module products.
Actively develop IGBT and other power modules, and grasp the rapid development opportunities of photovoltaic and new energy vehicles. At this stage, in the fields of photovoltaic and new energy vehicles, Infineon and other foreign manufacturers occupy a dominant position. Affected by the shortage of goods, the supply chain has an obvious trend of transfer to China, and there is a huge replacement space for domestic manufacturers. According to our calculation, in 2025, the photovoltaic IGBT market space will be about 10.5 billion yuan, the IGBT single tube space will be about 4 billion yuan, and the IGBT module space will be about 6.5 billion yuan. The company has developed some low loss high frequency IGBT and MOSFET module products for photovoltaic energy storage and other markets, and has gradually sold them in large quantities.
Layout the third generation semiconductor and keep up with the forefront of industry development. The demand of some downstream industries of power devices has gradually changed from silicon-based to wide band gap semiconductor power devices such as SiC / GaN. In particular, high-end emerging industries such as new energy vehicles, charging piles, photovoltaic inverter, 5g communication, laser power supply, servers and consumer electronics fast charging have become the main driving force for the scale expansion of SiC / GaN products. The company plans to invest 200 million yuan in the R & D and industrialization of the third generation semiconductor SiC / GaN power devices and packaging test on the basis of existing technology accumulation and product development through non-public fund-raising.
Profit forecast: we expect the company’s net profit attributable to the parent company in 2021, 2022 and 2023 to be RMB 415 / 530 / 663 million respectively, corresponding to 53 / 42 / 33 times of the share price PE on December 6, maintaining the “buy” rating.
Risk tip: customer expansion is less than expected, production capacity is less than expected, and R & D is less than expected.
