\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
Core view
The sixth largest IGBT leader in the world and the first in China. Sida was founded in 2005 and is one of the first IGBT companies in China. The IGBT module of the company was originally used in the field of industrial control, and has been expanded to the field of new energy vehicles, photovoltaic wind power and variable frequency household appliances. The revenue of 2021h1 company from the field of new energy accounts for 25.53%. The company now has the self-development and mass production capacity of a full range of IGBT and FRD chips.
The R & D team is strong, and China is the first company to launch FS trench IGBT chip. Fstrench is the most widely used IGBT chip structure in the field of vehicle regulation. The chairman, Dr. Shen Hua, graduated from MIT. The company’s R & D team has had R & D experience in Infineon, Xilinx and American International Rectifier. Benefiting from the strong R & D team, the company successfully developed FS trench IGBT chip with the same performance as Infineon’s fourth generation chip in 2015, and launched FS trench IGBT chip with micro channel tank car specification as Infineon’s seventh generation chip in 2021.
The company entered the field of new energy vehicles earlier and has a significant first mover advantage. New energy vehicle is one of the segments with the highest downstream threshold of IGBT. The verification and import cycle of vehicle specification level IGBT is long, and the earlier the enterprise passes the verification, the easier it is to seize a higher market share. 2021h1 company’s main motor controller vehicle specification level IGBT module is equipped with 200000 new energy vehicles in total. With the vigorous development of new energy vehicle market, the supporting quantity is expected to continue to increase.
With close cooperation with Huahong and Shanghai Advanced Technology Co., Ltd., with the release of production capacity, the revenue in the photovoltaic field is expected to increase significantly. At this stage, the demand for new energy vehicles and photovoltaic wind power is strong, and the foundry capacity of wafers has become the main bottleneck restricting the performance release of IGBT. The company cooperates closely with Huahong semiconductor and Shanghai advanced (Jita semiconductor), and is one of the most important customers of Huahong and advanced IGBT. At present, the company’s orders in the photovoltaic field are several times of the existing capacity. With the release of the capacity of Huahong and other OEM factories, the company’s revenue in the photovoltaic field is expected to grow rapidly.
The self built production line is arranged with high-voltage IGBT and SiC. It is expected that the SiC module will be opened in 2022 to accelerate the volume. The company plans to invest 1.5 billion yuan and 500 million yuan respectively in the production line layout, production and R & D of high-voltage IGBT and SiC chips, and further expand the smart grid, rail transit, wind power generation and new energy vehicle markets. At present, the company’s vehicle specification SiC module has been designated by a number of vehicle enterprises and Tier1 customers outside China. As of September 8, 2021, the company’s vehicle specification sicmosfet’s orders in hand have reached 343 million yuan.
Profit forecast: as the leader of IGBT in China, we are optimistic about the company’s first mover advantage in vehicle specification IGBT and accelerating domestic substitution in the fields of industrial control and new energy power generation. We expect the net profit attributable to the parent company in 2021, 2022 and 2023 to be 390 / 606 / 794 million yuan respectively, corresponding to 146 / 94 / 72 times of the share price PE on March 4, maintaining the “buy” rating.
Risk tip: OEM capacity expansion is less than expected, downstream demand growth slows down, and R & D is less than expected.
