As a leading A-share semiconductor silicon chip enterprise, Hangzhou Lion Electronics Co.Ltd(605358) ( Hangzhou Lion Electronics Co.Ltd(605358) ) joined the camp of "February newspaper". According to the newly disclosed operating data from January to February, due to strong market demand and full sales orders, the company's net profit after deducting non-profit in the first two months of this year increased by 2.5 times year-on-year.
From the perspective of market performance, after the disclosure of the results of the annual report Hangzhou Lion Electronics Co.Ltd(605358) , the company's share price fell by about 5.49% on March 10, and the latest closing was 104.92 yuan / share. However, the annual report showed that the company's profit was better, and the net profit after deducting non-profit last year increased by nearly three times year-on-year. The company also told the reporter of E company that everything was normal.
profits keep doubling
According to the latest operating data, Hangzhou Lion Electronics Co.Ltd(605358) achieved an operating revenue of about 458 million yuan from January to February 2022, with a year-on-year increase of about 84%; The net profit after deduction was about 131 million yuan, with a year-on-year increase of about 253%. The company's performance also maintained growth in 2021.
According to the annual report, Hangzhou Lion Electronics Co.Ltd(605358) 2021 had an operating revenue of 2.541 billion yuan, a year-on-year increase of nearly 70%, a net profit attributable to shareholders of listed companies of 600 million yuan, a year-on-year increase of 197.24%, a year-on-year increase of 288.83% after deduction, and a basic earnings per share of 1.46 yuan. At the same time, the company plans to distribute cash dividends of 5.5 yuan (tax included) and 4.8 shares for every 10 shares, and the total cash dividends are expected to be about 252 million yuan (tax included).
Previously, Hangzhou Lion Electronics Co.Ltd(605358) estimated that the net profit attributable to the shareholders of the listed company in 2021 would be 590 million yuan to 640 million yuan, with a year-on-year increase of 192.14% to 216.90%. Combined with this annual report, Hangzhou Lion Electronics Co.Ltd(605358) net profit growth is closer to the lower limit of the forecast. In addition, during the reporting period, the net cash flow from Hangzhou Lion Electronics Co.Ltd(605358) operating activities increased by about 40% year-on-year, lower than the growth rate of revenue. The company pointed out that it was mainly due to the decrease of bank acceptance bill discount and the increase of cash payment caused by the expansion of production and operation scale and the purchase and preparation of materials; Inventories increased by 70% year-on-year, due to the increase in sales and the corresponding increase in material preparation. The company told reporters that because the company has three projects under construction, relevant equipment and supporting parts are included in the inventory category.
At present, Hangzhou Lion Electronics Co.Ltd(605358) main businesses include semiconductor silicon wafers, semiconductor power devices and compound semiconductor RF chips. During the reporting period, the company's semiconductor silicon wafer business increased significantly, and the 6-inch silicon wafer production line and 8-inch silicon wafer production line were in full load operation for a long time. In particular, the company's characteristic 6-inch and 8-inch heavily doped silicon epitaxial wafers with special specifications were in short supply. The volume of 12 inch silicon wafers is obvious. By the end of 2021, it has reached the production capacity of 1.8 million wafers per year, and has realized large-scale production and sales. However, Quzhou 12 inch silicon wafer and compound semiconductor RF chip project is still in the stage of capacity climbing, the fixed cost is too high, and it is still in a state of loss.
In terms of business, Hangzhou Lion Electronics Co.Ltd(605358) has the most significant growth in semiconductor power devices, with the revenue doubling to 1 billion yuan, the gross profit margin increasing by 21 percentage points year-on-year, close to 51%, followed by the gross profit margin of semiconductor silicon wafer project reaching 45%. In contrast, the compound RF chip project is not yet profitable. In terms of regions, driven by the improvement of industry prosperity, strong market demand and the accelerated substitution of semiconductor localization, the domestic sales revenue increased significantly by 77.86%, and the proportion of export sales increased by 13.31% as the overseas epidemic eased.
In terms of customers, Hangzhou Lion Electronics Co.Ltd(605358) covers international well-known multinational companies such as ONSEMI, AOS, Toshiba, Taiwan semiconductor and Taiwan Hanlei, as well as Semiconductor Manufacturing International Corporation(688981) , Huahong Hongli, China Resources Microelectronics Limited(688396) electronics, Hangzhou Silan Microelectronics Co.Ltd(600460) and other Chinese well-known companies. At the same time, it has successfully passed the vda6 of international automotive electronics customers such as Bosch, Continental group and Fargo 3. Audit and certification.
Hangzhou Lion Electronics Co.Ltd(605358) 's R & D project mainly focuses on the production process technology of large-size semiconductor silicon wafer, the production process technology of GaAs RF chip and the production process technology of high-end power devices. Last year, the total R & D investment of the company was RMB 229 million, accounting for 9.01% of the operating revenue, and the total R & D investment doubled year-on-year. By the end of 2021, the company has 64 authorized patents, including 33 invention patents and 31 utility model patents.
expand 12 inch capacity
In addition to the good performance, Hangzhou Lion Electronics Co.Ltd(605358) will also expand the production capacity of 12 inch silicon wafers. It is disclosed that the holding subsidiary jinruihong Microelectronics will acquire 77.97% of the equity of Guojing semiconductor through cash and property transfer. The total price of this acquisition transaction is 1.485 billion yuan.
The main products of Guojing semiconductor are 12 inch silicon wafers for integrated circuits. At present, all infrastructure construction with a monthly production capacity of 400000 silicon wafers has been completed, and the fully automated production line for the production of 12 inch silicon wafers for integrated circuits has been put through. At present, it is in the stage of equipment installation and commissioning, customer introduction and product verification. It has not yet obtained operating revenue, and it is still in loss as of December 31, 2021.
Hangzhou Lion Electronics Co.Ltd(605358) pointed out that this acquisition will improve the company's market position in 12 inch silicon wafers for integrated circuits, especially light doped silicon wafers for storage and logic circuits, which is in line with the company's development strategy and long-term plan.
The reporter noted that jinruihong microelectronics is also one of the main bodies of the fixed increase investment project of Hangzhou Lion Electronics Co.Ltd(605358) 51 billion yuan last year. It is responsible for the annual output of 1.8 million 12 inch silicon wafers for integrated circuits. The scale of the proposed investment is also the highest, close to 2.3 billion yuan; In addition, Hangzhou Lion Electronics Co.Ltd(605358) will also invest the raised investment in the technical transformation project of 720000 pieces of 6-inch power semiconductor chips per year and 2.4 million pieces of 6-inch silicon epitaxial chips per year.
Orient Securities Company Limited(600958) analysis indicates that considering the short verification cycle of heavily doped wafer, the production and sales of Hangzhou Lion Electronics Co.Ltd(605358) 12 inch silicon wafer are expected to climb rapidly. From the perspective of leading companies, 8-inch silicon wafers and 12 inch silicon wafers signed by sumco, Xinyue and other manufacturers with customers in 2022 have increased by about 10% and 15%. It is expected that the price of silicon wafers is expected to maintain an upward trend in 2022; In addition, the company plans to hold Guojing semiconductor, and has signed an equity acquisition agreement, which is expected to strengthen the strength of light doped silicon wafers.
