Roshow Technoiogy Co.Ltd(002617) (002617)
Capital increase to the subsidiary Hefei Luxiao semiconductor. In December 2021, the company increased the capital of its subsidiary Hefei Luxiao semiconductor by 60 million yuan, with a cumulative capital injection of 320 million yuan. After the capital increase, the company’s shareholding in Hefei Luxiao semiconductor increased from 50.98% to 55.65%.
In the industrial day, silicon carbide substrate is on the eve of localization. The performance of silicon carbide power electronic devices is significantly better than that of silicon-based devices, which can energize the field of new energy vehicles and photovoltaic power generation, and achieve all-round improvement in efficiency, pressure volume and weight reduction. Ihsmarkit predicts that the market scale of silicon carbide will reach US $10 billion in 2027, with an annualized compound growth of 38.9%. Silicon carbide upstream substrate has high process barriers and low product yield, accounting for nearly 50% of the device value. Hefei Luxiao semiconductor has a mass production capacity of 6-inch conductive silicon carbide substrate, with an annual production capacity of 25000 pieces. The annual production capacity is expected to reach 100000 pieces in June 2022.
Hefei is geographically advantageous and cooperates with local state-owned assets to layout silicon carbide substrate. Hefei Luxiao semiconductor is located in Changfeng County, Hefei. The company, together with local state-owned assets in Hefei, plans to invest a total of 10 billion yuan in three phases to realize the mass production of 6-inch and 8-inch conductive silicon carbide substrate wafers and epitaxial wafers in stages. Since the establishment of Hefei Luxiao semiconductor, the company has successively injected 320 million yuan. The company issued a non-public offering plan on November 24, 2021, and plans to raise 2.94 billion yuan to invest in the silicon carbide project.
Technicians and, equity incentive lock industry experts. Professor Chen zhizhan, chief scientist of Hefei Luxiao semiconductor, once worked in Shanghai Silicate Institute of Chinese Academy of Sciences for a long time, studied the technology related to silicon carbide crystal growth for 23 years, published more than 100 papers and authorized more than 50 patents. The company’s employee stock ownership plan has granted Chen zhizhan 1 million shares, which are unlocked by performance assessment in three phases.
Investment suggestion: the company’s traditional business gradually recovers, the layout of silicon carbide substrate for new business is fast, and the technology accumulation, follow-up capacity and cooperative customers are among the forefront in China. We expect the company to achieve revenue of RMB 3.69/38.8/4.05 billion and net profit attributable to the parent company of RMB 139/364/505 million from 2021 to 2023, corresponding to pe16.4 billion 9 / 72.1 / 51.9x. Maintain the “overweight” rating.
Risk warning: the sales of new products are less than expected; Industry competition intensifies; Impairment and other risks caused by disasters.
