Hangzhou Silan Microelectronics Co.Ltd(600460) (600460)
Event description
On the evening of November 29, the company issued the draft of equity incentive, which plans to grant 21.5 million stock options to incentive objects, accounting for about 1.52% of the total share capital of the company, and the exercise price is 51.27 yuan / share.
Business analysis
For the first time since the listing, a large proportion of equity incentive is bound to the interests of employees, and the equity incentive goal shows the confidence of the management: this equity incentive scheme is the first equity incentive since the listing of the company, and the grant objects are senior and senior managers and core technical backbone, with a total of 2467 people. Through a wide range of incentive plans, we can better establish a benefit sharing mechanism, fully mobilize the enthusiasm of the management and core technicians, and attract and retain the company’s core talents. According to the assessment objectives of the scheme, if reference is made to the critical value of reaching conditions, the operating revenue in 2021, 2022, 2023 and 2024 will increase by 62%, 111%, 135% and 158% respectively compared with 2020.
Capacity ramp up and product structure optimization continue: the company’s 12 inch capacity is expected to ramp up to 40000 pieces / month by the end of 2021, 60000 pieces / month by the end of 2022, and 8-inch capacity is expected to increase from 63000 pieces / month to 76000 pieces / month by the end of 2023. The company is one of the few power companies with significant capacity growth from 2021 to 2022, which provides a guarantee for revenue growth. On this basis, the revenue of IGBT, IPM, MEMS and other product lines is expected to nearly double in 2021. In addition to accelerating the expansion of the company’s discrete devices and high-power modules in white power, industrial control and other markets, the company began to accelerate its entry into new energy vehicles, photovoltaic and other markets. The main motor drive module of electric vehicles based on IGBT and FRD chips has passed the test in many customers in China.
Investment advice
We slightly raised the company’s profit forecast for 2022-2023 to RMB 1.46 billion (up 4%) and RMB 1.56 billion (up 1%), respectively, maintaining the “buy” rating and the target price of RMB 70.2.
Risk statement
Risk of MOSFET price decline; Risks of technology upgrading; Risk of terminal output decline due to continuous shortage of some chips
