On December 22, chip stocks in Shanghai and Shenzhen generally rose, but Hangzhou Lion Electronics Co.Ltd(605358) shares plunged in the late trading, closing down 7.03% to 120.96 yuan / share.
There are market rumors that the company’s key customers cancel orders. The reporter of China Securities Journal and China Securities Taurus asked Hangzhou Lion Electronics Co.Ltd(605358) for confirmation. The securities affairs representative of the company responded that after verification, there was no cancellation of orders by major customers, and all production and operation were normal at present.
Hangzhou Lion Electronics Co.Ltd(605358) also responded on the interactive platform. At present, the company’s production and operation are normal, and major projects such as 12 inch silicon wafers are advancing in an orderly manner as planned.
Hangzhou Lion Electronics Co.Ltd(605358) was listed in September 2020 at an issue price of 4.92 yuan / share and raised about 200 million yuan. In October this year, the company implemented fixed increase, the issue price reached 91.63 yuan / share, and raised 5.2 billion yuan. The company’s share price reached the highest price of 188.07 yuan / share since its listing in July 2021, 37 times higher than the issue price.
China semiconductor silicon pioneer
According to the announcement of Hangzhou Lion Electronics Co.Ltd(605358) , since its establishment in 2002, the company has always focused on the R & D, manufacturing and sales of semiconductor materials and semiconductor power devices for integrated circuits. In 2015, the subsidiary Leon Dongxin was established to enter the field of compound semiconductor RF chips. The company was once selected as “2017 China’s top ten semiconductor power device enterprises” by China Semiconductor Industry Association. Zhejiang jinruihong, a subsidiary of silicon wafer business, was rated as the first in the semiconductor silicon wafer industry of “China’s top ten semiconductor material enterprises” for many consecutive years from 2015 to 2019. At present, the company has a complete industrial platform with strong competitiveness, and has the manufacturing capacity of silicon single crystal, silicon grinding wafer, silicon polishing wafer, silicon epitaxial wafer, power device chip and compound semiconductor RF chip.
China International Capital Corporation Limited(601995) believes that according to semi’s prediction, the global silicon wafer shipment is expected to reach 14 billion square inches in 2021, with a year-on-year increase of 13.9%, and will maintain strong growth in the next three years. The global silicon wafer is in short supply as a whole. Jin Ruihong, a subsidiary of Hangzhou Lion Electronics Co.Ltd(605358) , is a leading enterprise of heavily doped silicon wafer in China. It is one of the few enterprises in China with a production capacity of 6-12 inch epitaxial wafer / polished wafer.
Hangzhou Lion Electronics Co.Ltd(605358) according to investor research, the company can reach a 12 inch silicon wafer production capacity of 150000 pieces / month by the end of this year. At present, the built 12 inch silicon wafer production capacity of 20000 pieces / month has been shipped on a large scale on the one hand, and on the other hand, it is also continuing to carry out customer verification. However, the company’s 12 inch silicon wafer project subsidiary is still at a loss.
strong market demand and strong profitability
According to the third quarterly report, the company’s operating revenue in the first three quarters was 1.753 billion yuan, a year-on-year increase of 69.76%; The net profit attributable to the shareholders of the listed company was 404 million yuan, a year-on-year increase of 208.91%. The company timely adjusted the product price according to the market supply and demand. In the third quarter of 2021, Hangzhou Lion Electronics Co.Ltd(605358) single quarter gross profit margin reached 46.94%, a new high in recent years, with a year-on-year increase of 12.46 percentage points and a month on month increase of 4.02 percentage points; The net profit margin on sales reached 27.74%, a year-on-year increase of 12.76 percentage points and a month on month increase of 3.48 percentage points.
In the third quarterly report, the company said that due to the continuous improvement of market prosperity in its industry segments, strong market demand, full sales orders, a significant increase in the production and sales of main products, the product structure has been optimized, the company’s revenue has increased significantly year-on-year and its profitability has been significantly improved.
Hangzhou Lion Electronics Co.Ltd(605358) it was also introduced that the company had earlier laid out and completed the construction of new 6-inch and 8-inch silicon wafer production lines, and implemented the capacity technical transformation and improvement of power device chip manufacturing production lines, which fully met the current hot market demand. The company’s production lines are operating at full capacity, sales orders are full, and the production and sales of main products have increased significantly. The company also continues to strengthen the development of new products and technologies. In terms of 12 inch silicon wafers, after early customer expansion and product verification, the technical capacity has covered more than 14nm technical nodes, logic circuits, power devices and image sensor devices have covered the technical nodes required by customers, and have been shipped on a large scale; The production and sales of 8-inch silicon wafer were further enlarged and the market share was further improved; In terms of semiconductor power device chips, the production and sales of vehicle specification power device chips and photovoltaic bypass diode control chips have increased significantly; The production and sales of compound semiconductor RF chips also increased steadily.
(China Securities Journal)
