Jiangsu Jiejie Microelectronics Co.Ltd(300623) (300623)
Jiangsu Jiejie Microelectronics Co.Ltd(300623) its main business is to engage in the R & D, design, production and sales of power semiconductor chips and devices, and develop and produce a wide range of power semiconductor discrete devices.
Three main core businesses: thyristor, protective device and MOSFET
Thyristor products have the advantages of high voltage resistance, high current and convenient control. They can be used in various fields of national economy, such as consumer electronics, industrial manufacturing, new energy, automotive electronics, communication and transportation.
Semiconductor protective devices can be used in automotive electronic systems, building monitoring and security systems, communication equipment, communication terminals and other electronic products that need anti surge impact and anti-static.
MOSFET products have simple driving circuit, low driving power, fast switching speed and high working frequency. The application scope includes power generation, transmission, transformation, distribution, power consumption, power storage and other links.
Since the IPO, with the continuous expansion of the company’s production, the total production capacity has reached the annual production capacity of 4.209 million semiconductor chips and the annual packaging capacity of 8.266 billion semiconductor devices. It strongly supports the company’s transformation strategy to comprehensive IDM mode.
Core assumptions:
In the first three quarters of this year, the gross profit margin of the company’s three main products thyristors, protective devices and MOSFETs was about 57%, 53% and 28%. Among them, thyristors and protective devices adopt IDM mode, with high gross profit margin; At present, the gross profit margin of MOSFET is low, which is mainly due to the fact that the company’s MOSFET products are streamed out, with 70% outsourced packaging and 30% self sealing, and the streamer cost is high. The company is gradually transforming from fabless mode to IDM mode. If the transformation is successful, the gross profit margin of MOSFET products can be increased to more than 35%. It is estimated that the company’s gross profit margin will remain at a high level of more than 51% in 2021 and 2022.
It is estimated that the growth rate of the three core businesses of thyristor, protective device and MOSFET will be 50%, 50% and 150% respectively in 2021, and the growth rate of the three core businesses will continue to be 25%, 40% and 100% in 2022.
From the perspective of comparable company valuation, the median PE of Chinese companies in the same industry was 64 times in 2021. In 2021, the average revenue growth rate of comparable companies reached 31.3% and the net profit growth rate reached 112%, continuing to maintain a high outlook. According to the forecast, the net profit scale of Jiangsu Jiejie Microelectronics Co.Ltd(300623) in 2021 is 498 million yuan and 771 million yuan. The corresponding company value is 32 billion and 49.3 billion respectively.
Profit forecast:
Benefiting from the continuous high growth of the semiconductor business and the improvement of the gross profit margin of the comprehensive transformation IDM model, it is expected that the revenue growth rate of the company in 2021 and 2022 will be 69% and 57% respectively, with a revenue scale of RMB 1.709 billion and RMB 2.68 billion. It is estimated that the profit growth of the company in 2021 and 2022 will be 75.8% and 54.86% respectively, with a profit scale of 498 million yuan and 771 million yuan. The corresponding PE was 52.25 times and 33.74 times, respectively. For jiejie convertible bonds (123115) and positive shares Jiangsu Jiejie Microelectronics Co.Ltd(300623) (300623), maintain the “buy” rating.
Risk warning: policy risk, profit less than expected risk
