\u3000\u3 Bohai Water Industry Co.Ltd(000605) 358 Hangzhou Lion Electronics Co.Ltd(605358) )
On March 9, Hangzhou Lion Electronics Co.Ltd(605358) released the annual report of 2021. The company achieved a revenue of 2.541 billion yuan in 2021, with a year-on-year increase of 69.17%; The net profit attributable to the parent company was 600 million yuan, a year-on-year increase of 197.24%; The non net profit deducted was 584 million yuan, a year-on-year increase of 288.83%. Corresponding to the single quarter of 21q4, the company achieved a revenue of 788 million yuan (YoY + 67.86%, QoQ + 8.67%) and a net profit attributable to the parent company of 196 million yuan (YoY + 992.82%, QoQ + 0.41%).
Silicon chip + power + RF are fully developed, boosting the high-speed growth of performance in 2021. In 2021, benefiting from the continuous high prosperity of the industry and the continuous optimization of product structure, the production and sales of each product line of the company are booming, with strong growth: (1) semiconductor silicon wafer achieved a revenue of 1.459 billion yuan, yoy + 49.85%, gross profit margin of 45.45% and yoy + 4.79 ppts. (2) Semiconductor power devices achieved a revenue of 1.007 billion yuan, yoy + 100.34%, gross profit margin of 50.95%, yoy + 21.00ppts. (3) Compound semiconductor RF chips achieved a revenue of 44 million yuan, yoy + 474.32% and a gross profit margin of – 93.77%, significantly reducing losses year-on-year.
The scale effect of semiconductor silicon wafer business appears, and the product verification is progressing smoothly. In 2021, the company’s 6 / 8-inch heavily doped silicon epitaxial wafer is in short supply, and the capacity utilization rate continues to be high. The scale effect of 12 inch semiconductor silicon wafer is gradually emerging. The production capacity will reach 150000 pieces / month by the end of 2021, the capacity utilization rate will continue to climb, and the customer demand will continue to be strong. In addition, the company’s 12 inch silicon chip technology capability has covered more than 14nm technology node logic circuits, and has been shipped on a large scale at the customers of image sensor devices and power devices. At present, the products mainly include epitaxial positive chips, polished chips and test chips. Looking forward to 2022, the company is expected to accelerate the expansion of 12 inch silicon wafer Market by virtue of technical advantages and first mover advantages. With the continuous rise of silicon wafer prosperity, the company’s semiconductor silicon wafer business is expected to maintain a high-speed growth trend.
The product line of power devices has been continuously rolled out and the product structure has been continuously optimized. In 2021, the company continued to optimize the market structure, customer structure and product structure, and the sales scale of grooved Schottky, planar Schottky customized products, photovoltaic products, automotive chips, power chips and other products increased rapidly. The proportion of shipments of photovoltaic products continued to increase, accounting for 46% of the company’s total shipments of power devices in 21 years, accounting for 43-47% of the global sales of photovoltaic devices in 21 years; The monthly order volume of Schottky and MOS devices related to power supply has exceeded the actual maximum capacity. In the future, with the continuous expansion of product line, continuous optimization of product structure and continuous growth of production capacity, the company’s power device business is expected to continue to grow rapidly.
GaAs RF chip has accumulated a lot and provided a new driving force for the company’s growth. In 2021, the company’s RF chip business achieved leapfrog development, and the business platform developed 0.15 μ M e-mode PHEMT and other processes and products with the characteristics of low cost, high performance, high uniformity and high reliability have successively entered the market, forming a large-scale commercial sales and maintaining the momentum of rapid volume increase. The company’s GaAs RF chip platform has developed more than 60 customers, and the production and sales volume continues to climb. In the future, the company is expected to achieve rapid profit growth by virtue of the technical accumulation and capacity improvement of GaAs RF chip business.
Investment suggestion: we expect that the net profit attributable to the parent company in 22 / 23 / 24 years is expected to reach 923 / 1230 / 1512 million yuan, corresponding to 49 / 37 / 30 times of PE in 22 / 23 / 24 years. The company has international competitiveness in the field of semiconductor silicon wafers and power devices, and continues to develop new product lines. It has significant long-term growth and is covered for the first time. It is rated as “recommended”.
Risk warning: downstream demand is less than expected; The ramp up of production capacity is less than expected; Intensified market competition
