Wuxi Nce Power Co.Ltd(605111) (605111)
Event: the company released the third quarterly report of 2021.
Power devices are highly prosperous, and the company’s Q3 performance is increasing. From January to September 2021, the company realized a revenue of 1.099 billion yuan, a year-on-year increase of + 65.05%; The net profit attributable to the parent company was 311 million yuan, a year-on-year increase of + 207.83%. In 2021q3, the single quarter revenue was 422 million yuan, a year-on-year increase of + 49.84%; The net profit attributable to the parent company was 136 million yuan, a year-on-year increase of + 198.78%.
The structure of customers and products was optimized, and the profitability was greatly improved. From January to September 2021, the company’s gross profit margin was 38.90%, a year-on-year increase of + 14.47 PCT; The net interest rate was 28.26%, a year-on-year increase of + 13.11pct. In the case of tight upstream production capacity, the company optimized the product sales structure, increased the proportion of high gross profit products, and significantly improved its profitability compared with the same period last year.
Close cooperation with Huahong, 8 + 12 inch production capacity continued to grow. The company’s main chip foundries include Huahong Hongli and China Resources Shanghua. The company cooperates closely with Huahong and has production capacity on Huahong’s 8-inch and 12-inch platforms. While continuing to strive for the capacity of the existing foundry, the company also continues to expand the supply channels of chip foundry at home and abroad. 2021h1 company has returned more than 103000 8-inch chips and 32000 12 inch chips. When OEM capacity is tight, striving for more chip capacity will help the company quickly expand its downstream market share.
IGBT has made great progress and looks forward to large-scale production in photovoltaic energy storage and other fields. With the help of Huahong 8 + 12 inch advanced characteristic technology, the company’s IGBT products are used in photovoltaic inverter Energy storage inverter (UPS), industrial control, electric tool motor drive, household appliance frequency conversion control and other industries have made breakthroughs and cooperated with leading customers in the industry. In addition, the company’s IGBT module has obtained some customer orders since the launch of relevant products in 2021q2. In 2021h1, the company’s IGBT product revenue was 26.4222 million yuan, a year-on-year increase of + 1114.60%.
Comply with the industry trend and layout SiC / GaN / IGBT, power drive IC and IPM. On November 12, 2021, the company issued a non-public plan to raise 1.45 billion yuan to lay out SiC / GaN sealing test, R & D R & D of power drive IC and IPM modules, SiC / IGBT / MOSFET and other power integration modules (including vehicle specification level). With the strong development of emerging industries such as Internet of things, photovoltaic and new energy vehicles, power devices are developing in the direction of modularization and integration, and the third generation semiconductor is developing rapidly.
Profit forecast: we expect the company’s net profit attributable to the parent company in 2021, 2022 and 2023 to be RMB 433 / 538 / 668 million respectively, corresponding to 52 / 42 / 33 times of the share price PE on November 23. It is covered for the first time and given a “buy” rating.
Risk tip: customer expansion is less than expected, production capacity is less than expected, and R & D is less than expected.
