\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 72 Gansu Shangfeng Cement Co.Ltd(000672) )
Events
On March 10, Hefei Jinghe integrated circuit Co., Ltd. was approved for the first time (Kechuang board) Gansu Shangfeng Cement Co.Ltd(000672) through the joint establishment of a special fund, Hefei Cunxin Fund (with a capital contribution of 250 million yuan and a shareholding of 83.06%) holds 1.75% of the equity of Jinghe integration (before this public offering), which is the sixth largest shareholder of Jinghe integration.
Crystal integration: DDIC OEM leader
Hefei Jinghe integrated DDIC has the largest market share in the world, and has achieved mass production of a 12 inch wafer foundry platform with 90-150nm process nodes. In addition to DDIC, its products also include miniled, CIS, e-tag, etc. 2021h1 crystal integrated DDIC wafer foundry revenue accounts for 93%. Customers include DDIC design leaders such as Lianyong technology, Qijing optoelectronics, Jichuang north and Tianyu Technology. In 2021, crystal integration is expected to achieve a revenue of 5.429 billion, a net profit attributable to the parent company of 1.729 billion and a net asset of 9.223 billion. After deducting the issuance expenses, it is proposed to raise 9.5 billion yuan.
Flexible investment in Nuggets new economy, “peak” mode to improve capital efficiency
We will continue to promote the development strategy of “one main body and two wings”, adhere to innovation in core technology fields and flexibly layout the new economy. (1) In the semiconductor field, the global DDIC foundry leader crystal integration conference was held, and Shangfeng invested 200 million yuan to participate in Guangzhou Yuexin. Guangzhou Yuexin is the only 12 inch chip production platform entering mass production in Guangdong Province. In addition, in 2021, Shangfeng will increase investment in core Yaohui, Ruili integrated circuit (Changxin storage), Angrui microelectronics, all core smart manufacturing and other projects; (2) In the field of green power, relying on its own base resources, locate the financial investment of photovoltaic industry + new energy. In January 2022, it was announced that it planned to invest 30 million yuan to establish a joint venture with sunshine new energy and Hefei Yixin to produce electricity by itself, so as to reduce the proportion of purchased electricity, achieve energy conservation and emission reduction + strive for the green power index of the main industry. Revitalize the traditional capital and improve the rate of return. The ROE (diluted) of the company exceeded 40% in 201819, leading its peers, and fell back to 30% in 2020, which is still beautiful. The main business of cement has excellent cash flow. In addition to the purchase of cement indicators and aggregate layout, the company also carries out new economy industrial investment and securities investment. The current rate of return is significantly higher than the financial income.
Construction accelerated in March, with capital construction projects + funds rising
Underestimated value + anti inflation + infrastructure chain, and continue to recommend the cement sector of infrastructure chain. The recent fiscal expansion has increased local transfer payments and alleviated the financial pressure. There is neither lack of projects nor lack of funds in infrastructure construction, which is expected to hedge the downward pressure of Q1 economy. At present, the oil price is rising. From the perspective of anti inflation, the cement sector is less negatively affected. With a better supply pattern and strong bargaining power, the price increase in Yangchun is under way. At present, the price of clinker along the river in East China has increased for four consecutive rounds, accumulating 110 yuan / ton.
Investment suggestion: one belt, one Road East and Anhui + Zhejiang, the T layout is the best way to seize the opportunity. The investment vision is unique and expanding continuously. The layout extends to many areas, such as the northwest, southwest, northeast and “one belt and one road”. The main business continues to grow and break through the bottleneck of capacity. At the same time, adhering to the strategy of “one main body and two wings”, sand and gravel aggregates contribute to the increment and flexibly invest in the new economy of gold mining. We expect that the net profit attributable to the parent company from 2021 to 2023 will be RMB 2.509 billion, RMB 2.848 billion and RMB 2.939 billion respectively, and the corresponding dynamic PE of the closing price on March 10 will be 7, 6 and 6 times respectively, maintaining the “recommended” rating.
Risk warning: the investment progress is not as expected; The weather changes are less than expected; The pace of funds in place was less than expected.
