\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
Event overview:
The company released the performance express for 2021: the annual revenue was 1.7 billion yuan, yoy + 77%, and the net profit attributable to the parent was 398 million yuan – close to the upper limit of the forecast range, yoy + 121%, and the corresponding deduction of non attributable net profit of 378 million yuan – close to the upper limit of the forecast range, yoy + 143%. It is estimated that 21q4 company achieved revenue of 510 million yuan, QoQ + 7%, yoy + 73%, net profit attributable to parent company of 130 million yuan, QoQ + 16%, yoy + 179% in the current quarter, deducting net profit attributable to non parent company of 126 million yuan, QoQ + 15%, yoy + 215%.
In the 21st century, high growth was achieved in the whole year, and the profitability of Q4 was further improved
1) the company is in a high-speed growth channel: 20q4-21q4. The quarter on quarter growth rate of the company’s revenue is 17%, 10%, 21%, 21% and 7% respectively. From the demand side, as the leader of domestic IGBT, the company fully benefits from the industry boom and domestic substitution; From the supply side, as a major customer of the wafer factory, the company is easier to obtain Capacity Guarantee and support the rapid growth of the business. 2) Improvement of product structure and profitability: from 20q4 to 21q4, the non net profit margin deducted by the company in each quarter was 13.6%, 20.0%, 19.5%, 23.0% and 24.7%, rising quarter by quarter as a whole. This is due to the company’s increased research and development, continuous development of high value-added products and optimization of product structure. Specifically, in 2021, the company will rapidly increase its volume in high-end fields such as new energy vehicles, photovoltaic / wind power / energy storage, and the proportion of revenue will further increase.
A large number of photovoltaic products are installed, and the volume of vehicle regulated products is accelerated in 22 years
Photovoltaic: 21h1, IGBT modules and devices of the company have been installed in large quantities at photovoltaic customers. The company has become an important supplier of many leading photovoltaic and wind power inverters. (1) continuous driving capacity of new energy company: 21bt; 2) The company’s seventh generation micro channel tank car gauge IGBT chip was successfully developed in 21h1 and is expected to be supplied in batches in 22 years; 2) The company’s sgtmosfet has started small batch supply. In the third generation semiconductor field, several 800V project fixed points of sicmosfet modules have been added. As of September 8, 2021, sicmosfet’s orders in hand have reached 340 million yuan, and the delivery time is 22-23 years.
Self built production line opens medium and long-term growth space
The company’s 21m3 announced 3.5 billion fixed increase project plan: 1) 1.5 billion yuan for the industrialization of high-voltage chips; 2) 500 million yuan for SiC chip industrialization; 3) 700 million yuan for power module automation transformation; 4) Supplementary working capital of 800 million yuan. The plan was approved by the CSRC in September of that year. After the project is completed, it is expected to have an annual production capacity of 3 Shenzhen Zhenye(Group)Co.Ltd(000006) -inch high-voltage power wafers, 60000 SiC wafers and 4 million power modules. This makes: 1) the company has the supply capacity of 3300v and above IGBT modules, which can further expand the scope of shipment to existing customers such as Shenzhen Inovance Technology Co.Ltd(300124) , Shenzhen Invt Electric Co.Ltd(002334) , Siemens; 2) The company will have its own vehicle specification sicmosfet chip, so as to improve the capacity guarantee ability of vehicle specification SiC module.
Investment advice
In view of the higher than expected earnings published in the company’s performance express in 2021 and the expected large-scale revenue of SiC products in 2023, we adjusted our forecast of the company’s net profit attributable to the parent company in 2021 / 22 / 23 to RMB 400 / 61 / 870 million (previously predicted to be RMB 350 / 4.8 / 650 million), corresponding to 159 / 105 / 73 times of PE. In view of the company’s leading position in the field of new energy IGBT, the company is expected to fully benefit from the acceleration of domestic substitution. Maintain the “buy” rating.
Risk tips
The industry boom is less than expected, the R & D progress is less than expected, and the raised investment projects are less than expected.
