\u3000\u3 Bohai Water Industry Co.Ltd(000605) 358 Hangzhou Lion Electronics Co.Ltd(605358) )
Event: the company released its annual report for 2021. The annual operating revenue was 2.541 billion yuan, a year-on-year increase of 69.17%, and the net profit attributable to the parent company was 600 million yuan, a year-on-year increase of 197.24%. The company disclosed the operating data from January to February 2022, and preliminary accounting showed that the operating revenue was about 458 million yuan, an increase of about 84% year-on-year; The net profit attributable to the parent company after non deduction was about 131 million yuan, with a year-on-year increase of about 253%.
The performance of silicon wafer, power and RF three wheel drive company increased significantly. In terms of product revenue, the revenue of semiconductor silicon wafer, power device and compound chip in 2021 was RMB 1.459 billion, 1.007 billion and 44 million respectively, with a year-on-year increase of 49.85%, 100.34% and 474.32%, and the gross profit margin of silicon wafer and power was 45.45% and 50.95% respectively, with a year-on-year increase of 4.69pct and 21pct. The high growth of the company’s performance is due to the first layout of 6 / 8 / 12 inch silicon wafer production line and the technical transformation and capacity improvement of power device production line, which can meet the needs of the high market boom. At the same time, in terms of cost, the company has achieved remarkable results by improving management efficiency and lean production.
Continue to expand production and maintain competitive advantage. Expand the production of 6 / 8 / 12 inch semiconductor silicon wafer production line, and accelerate the completion of phase II project of 6 inch silicon wafer and 12 inch silicon wafer production line; Continue the technical transformation of power devices, improve the production capacity, increase the market share of trench products, develop new products, deeply cultivate the vehicle gauge chip business, and improve the proportion of high-end customers’ products of general power supply; The first phase construction project of Haining compound chip project was started.
It is proposed to acquire Guojing semiconductor and improve the 12 inch light doping layout. The company intends to acquire 97.77% of the equity of China semiconductor. The main products of Guojing semiconductor are 12 inch silicon wafers. At present, the infrastructure construction of production capacity of 400000 pieces per month has been completed. The fully automated production line of 12 inch silicon wafers for integrated circuit production has been completed. At present, it is in the stage of equipment installation and commissioning, customer introduction and product verification. This acquisition will help to expand the company’s 12 inch silicon wafer production scale and improve the light blending technology capacity, which is in line with the company’s long-term plan.
Profit forecast: the company fully benefits from the high prosperity of the industry, and we maintain the “buy” rating. It is predicted that the company’s operating revenue in 22-24 years will be 3.947 billion yuan, 5.287 billion yuan and 6.873 billion yuan, and the net profit attributable to the parent company will be 951 million yuan, 1.257 billion yuan and 1.620 billion yuan, corresponding to EPS of 208, 2.75 and 3.54 million yuan.
Risk tip: the prosperity of downstream silicon wafer is lower than expected, and the capacity construction is lower than expected
