\u3000\u3 Bohai Water Industry Co.Ltd(000605) 358 Hangzhou Lion Electronics Co.Ltd(605358) )
Core view
Revenue will grow by 69% in 2021 and is expected to grow by 51% in 2022. In 2021, the annual revenue was 2.541 billion yuan (yoy69%), the net profit attributable to the parent company was 600 million yuan (yoy197%), and the net profit not attributable to the parent company was 584 million yuan (yoy289%). Among them, the revenue of 4q21 was 789 million yuan (YoY 68%, QoQ 8.67%), and the net profit attributable to the parent company was 196 million yuan (YoY 176%, QoQ 0.41%), setting a new high in quarterly performance. In terms of profitability, in 2021, the gross profit margin increased by 9.60pct to 44.90%, and the net profit margin increased by 10.16pct to 24.49%. Looking forward to 2022, the company's revenue from January to February is 458 million yuan (YoY 84%), deducting 131 million yuan (yoy253%) of non parent net profit. It is estimated that the annual revenue is 3.825 billion yuan (YoY 51%) and the total operating cost is 2.608 billion yuan (yoy42%). The cost growth rate is lower than the revenue growth rate, and the profitability is expected to be further improved.
The product structure was further optimized, and 12 inch silicon chips and compound semiconductor RF chips were sold on a large scale. In 2021, the company's orders were full, all production lines operated at full capacity, and the three major businesses were progressing smoothly. The revenue of semiconductor silicon wafer business is 1.459 billion yuan (YoY 50%), accounting for 57%, of which the annual production capacity of 12 inch silicon wafer reaches 1.8 million pieces, realizing large-scale production and sales, and the technical capacity has covered the logic circuit of technical nodes above 14nm. The revenue of semiconductor power device business is 1.007 billion yuan (YoY 100%), accounting for 40%, of which photovoltaic products continue to increase, accounting for 46% of the total shipment. The revenue of compound semiconductor RF chip business was 44 million yuan (YoY 474%), accounting for 2%, and 0.15% was developed μ M e-mode PHEMT's technology and products have formed a large-scale commercial sales and rapid volume, with more than 60 high-quality customer groups.
Increase capital expenditure to expand production, acquire Guojing and supplement 12 inch light mixing capacity. In response to market demand,
The company actively expanded its production. In 2021, the cash expenditure on investment activities was 4.328 billion yuan, of which 2.846 billion yuan was used for the purchase and construction of fixed assets. The capital expenditure in 2022 is expected to be 3.813 billion yuan. In addition, according to the announcement, the company will acquire Guojing semiconductor for a consideration of 1.485 billion yuan. After completion, it will hold a controlling stake of 77.97%. Guojing semiconductor has completed all infrastructure construction with a monthly production capacity of 400000 wafers, 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. This acquisition is conducive to rapidly expand the production scale of 12 inch silicon wafers and improve the company's production capacity of 12 inch silicon wafers, especially storage Market position of light doped silicon wafers for logic circuits.
Investment suggestion: under the high prosperity of the industry, the company's production capacity is continuously released and is rated as "overweight"
We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 952 / 1161 / 1365 million, with a year-on-year growth rate of 59 / 22 / 18%; EPS is 2.08/2.54/2.98 yuan, and the PE corresponding to the share price on March 10, 2022 is 50 / 41 / 35x respectively. The company's downstream demand is strong, all production lines are fully loaded, and actively expand production through endogenous extension, which will continue to benefit from the high prosperity of the industry and be rated as "overweight".
Risk warning: the release of production capacity is less than expected; Customer verification is not as expected; Downstream demand was lower than expected.
