\u3000\u3 Guocheng Mining Co.Ltd(000688) 508 Wuxi Chipown Micro-Electronics Limited(688508) )
Event: the company issued a fixed increase announcement on the evening of March 17, and plans to raise 1.1 billion yuan for the R & D and industrialization project of high-voltage power supply and electric drive power chip of new energy vehicles, the R & D and industrialization project of industrial digital power management chip and supporting power chip, and the project of Suzhou R & D center.
Aim at the high growth track of new energy vehicles and expand to the vehicle specification level by relying on the accumulation in the field of industrial power supply. At present, the penetration rate of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in China has increased rapidly. According to the statistical data of China Automobile Industry Association, the sales volume of electric vehicles in China in 2021 was 3.521 million, with a year-on-year increase of 1.6 times, and the market share has increased to 13.4%, an increase of 8 percentage points compared with 2020. Compared with traditional fuel vehicles, new energy vehicles have added “three electricity” systems of battery, motor and electronic control, which puts forward higher demand for power management. The rapidly expanding market provides a good opportunity for domestic manufacturers to cut into automobile chips. The raised investment project of the company will develop a series of chips of high-voltage power conversion and distribution system and high-voltage drive system for 400V / 800V batteries, including high-voltage power control chip, high-voltage half bridge drive chip, high-voltage isolation drive chip, high-voltage auxiliary source chip and intelligent IGBT and SiC devices. The products will be mainly used in new energy vehicle OBC (on-board charger), PDU (high-voltage distribution unit) and electric drive system. Relying on its own technical advantages and technical accumulation in the field of industrial power supply, the company expands to high-scale growth tracks, which is expected to significantly open up the space for growth in the future. At the same time, the vehicle gauge chip has high technical requirements and long certification cycle. The company plans to strengthen its control over the packaging link by cooperating with the packaging and testing factory to build a sealing and testing production line, so as to improve the product yield and obtain the guarantee of packaging capacity, so as to further strengthen the core competitiveness of the company.
Layout digital power management chips and expand the high-end industrial market. The company has a good layout and technical accumulation in the industrial power management market. From entering the industrial market in 13 years to 2021, the revenue of industrial control power chips will reach 118 million yuan, accounting for 15.75%. The digital power management chip products raised and invested this time are widely used in high-power industrial scenes such as data centers, servers, base stations, photovoltaic inverters, energy storage and so on. High power digital power supply chips have high technical barriers, and there is a huge space for domestic substitution. The power management chip technology foundation accumulated by the company over the years is expected to open the high-end industrial market and form a new profit growth point.
The market space of power management chip is broad, and the localization process is unstoppable. The company focuses on the field of power management chips, focusing on home appliance chips, standard power chips and industrial control power chips, and continues to cut into the application field of high growth + high value. According to Frost & Sullivan, China’s power management chip market is expected to grow from US $11.8 billion to US $23.5 billion from 2020 to 2025. The competition pattern of China’s power IC is scattered, and the domestic substitution gap is huge, especially in the field of household power. The global foundry and sealed test capacity continues to be fully loaded, and the 8-inch capacity is tight. Under this background, the company accelerates the introduction of industry benchmark customers, continues to make breakthroughs in China’s major power market, and realizes the rapid and large-scale production of products and the acceleration of the process of domestic substitution.
Investment suggestion: we expect the company’s revenue in 2022, 2023 and 2024 to be RMB 1.058/14.91/1.937 billion respectively, the corresponding net profit attributable to the parent company to be RMB 276/3.92/513 million respectively, and the corresponding PE to be 43 / 30 / 23 times respectively. Maintain the “buy” rating.
Risk warning: the R & D progress is less than expected, the risk of intensified market competition, and the downstream demand is less than expected
