\u3000\u3 Bohai Water Industry Co.Ltd(000605) 358 Hangzhou Lion Electronics Co.Ltd(605358) )
Event:
\u3000\u30001. The company released its annual report for 2021, and achieved an operating revenue of 2.541 billion yuan in 2021, with a year-on-year increase of 69.17%; The net profit attributable to the shareholders of the listed company was 600 million yuan, a year-on-year increase of 197.24%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 584 million yuan, a year-on-year increase of 288.83%.
\u3000\u30002. The company announced that from January to February 2022, the company achieved an operating revenue of about 458 million yuan, an increase of about 84% year-on-year; The net profit deducted from non parent company was about 131 million yuan, with a year-on-year increase of about 253%.
\u3000\u30003. The company announced that jinruihong microelectronics, the holding subsidiary of the company, plans to acquire 14.25% equity of Guojing semiconductor held by Kangfeng investment and 44.44% equity of Guojing semiconductor held by Shanghai Zhezhong Group Co.Ltd(002346) in cash. In addition, jinruihong microelectronics also received 466667% of the property share of Jiaxing Kangjing held by Kangfeng investment. Since Jiaxing Kangjing holds 41.31% of the equity of Guojing semiconductor, the company can indirectly hold 19.28% of the equity of Guojing semiconductor by holding 466667% of the property share of Jiaxing Kangjing. After the acquisition, the company holds 77.97% of the equity of Guojing semiconductor through direct and indirect ways, and will obtain the control of Guojing semiconductor.
The annual performance increased significantly year-on-year, and the profitability continued to improve: the company’s performance increased significantly year-on-year, mainly due to the high prosperity of the semiconductor industry, the acceleration of domestic substitution, the company’s full sales orders, the continuous release of new production capacity, and the simultaneous rise of the volume and price of main products, which led to a significant increase in the company’s revenue and net profit. From the perspective of product revenue, the revenue of semiconductor silicon wafer, power device and GaAs chip of the company was 1.459 billion yuan, 1.007 billion yuan and 44 million yuan respectively, with a year-on-year increase of + 50%, + 100% and + 473%, and the gross profit margin was 45.45%, 39.63% and – 93.77% respectively, with a year-on-year increase of 4.79 PCT, 6.17 PCT and 152.17 PCT respectively. The revenue and gross profit margin of various businesses increased significantly year-on-year. From the perspective of Q4 single quarter, the operating revenue of Q4 single quarter was 788 million yuan, an increase of 67.86% year-on-year and 8.69% month on month; The net profit attributable to the parent company was 196 million yuan, a year-on-year increase of 992.82% and a month on month increase of 0.51%. Q4 performance continued the high growth trend, with year-on-year and month on month growth.
The production and sales of semiconductor silicon wafers are booming, and 12 inch silicon wafers are expected to rise rapidly: on semiconductor silicon wafers, according to the announcement, the company’s 6-inch silicon wafer production line and 8-inch silicon wafer production line are in full load operation for a long time, especially the company’s characteristic 6-inch and 8-inch heavily doped silicon epitaxial wafers with special specifications are in short supply. By the end of 2021, 12 inch silicon wafers have reached the production capacity of 1.8 million pieces per year, and large-scale production and sales have been realized. The technical capacity has covered more than 14nm technical nodes, logic circuits, image sensor devices and power devices have covered the technical nodes required by customers, and large-scale shipments have been made. At present, the main products sold include polished wafers, test wafers and epitaxial positive wafers, At the same time, we are continuing to carry out the verification of customer sample delivery and the climbing of production and sales volume. With the introduction of 12 inch customers and the release of new capacity, shipments are expected to start rapidly..
It plans to acquire Guojing semiconductor and improve the business layout of 12 inch silicon wafers: jinruihong microelectronics, the company’s holding subsidiary, plans to acquire Guojing semiconductor. 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 connected, At present, the equipment is in the stage of import, installation and commissioning. This acquisition is conducive to rapidly expand the company’s existing production scale of 12 inch silicon wafers for integrated circuits and improve the company’s market position in 12 inch silicon wafers for integrated circuits, especially light doped silicon wafers for storage and logic circuits.
Investment suggestion: we expect the company’s revenue from 2022 to 2024 to be 3.791 billion yuan, 5 billion yuan and 6.308 billion yuan respectively, and the net profit attributable to the parent company to be 964 million yuan, 1.284 billion yuan and 1.617 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: downstream demand attenuation risk, market competition risk, raw material price rise risk, and the risk that the production capacity is not up to expectations.
