\u3000\u30 Fawer Automotive Parts Limited Company(000030) 26 Zhejiang Mtcn Technology Co.Ltd(003026) )
The company is a leading manufacturer in the field of monocrystalline silicon materials in China. Based on 3-6-inch small-size silicon rod silicon wafer, the company raises and invests 8-inch polished wafer to open up growth space. Founded in 2010, the company has been deeply engaged in the field of semiconductor monocrystalline silicon materials for many years. Its products mainly cover 3-6-inch semiconductor silicon rods and silicon grinding tablets. It has excellent technical level and a wide range of customers, including Suzhou Good-Ark Electronics Co.Ltd(002079) , Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , CETC 46 and other downstream manufacturers. Some of the company’s silicon rod products are exported and some are for personal use. The upstream and downstream integration of the industrial chain has obvious advantages, and the profitability is leading the industry. The net interest rate in the first three quarters of 2021 is 37.11%. In the field of 3-6-inch silicon wafers: the company has gradually increased the proportion of large-size silicon wafers and steadily improved its profitability. In addition, it has actively expanded its production and continued to climb its production capacity. In the future, with the increase of the proportion of large-size silicon wafers, the price of upstream polysilicon will recover and the production capacity will be gradually released, and the company’s revenue will grow rapidly; 8-inch silicon polishing wafer field: the company has accumulated technology for many years. At present, the construction of the raised investment project is smooth. After the 8-inch polishing wafer project is successfully put into operation, it will enrich the company’s product layout in the field of semiconductor silicon wafer, greatly enhance its position in the domestic silicon material industry, and have a broad growth space in the future.
The global supply and demand pattern of silicon wafers continues to be tight, the price of silicon wafers will remain high for a long time, the supply shortage of large overseas silicon wafer manufacturers + the price of silicon wafers will remain high, and the mainland silicon wafer companies have entered a golden growth period. The global semiconductor silicon wafer experienced several cycles, (1) around 2006, with the rise of personal PC, the global semiconductor market sales rose sharply, driving the silicon wafer supply in short supply. Overseas manufacturers expanded their production capacity on a large scale. Then, under the impact of the financial crisis in 2008, the silicon wafer sales fell, and the construction of a large number of factories stagnated. (2) From 2014 to 2018, driven by 4G, the rise of personal mobile phones, the warming of PC and the rapid expansion of overlay memory market, the rapid development of global semiconductor market and the gradual warming of silicon wafer demand. The global 12 inch silicon wafer was expanded on a large scale in 2006, and the demand gap did not appear until 2016. After 10 years of supply exceeding demand. (3) Then, in 2019, affected by downstream destocking and Sino US trade friction, the industry contracted again. After the epidemic in 2020, the semiconductor industry returned to the growth period due to the outbreak of downstream multi industry demand. The global market of silicon wafers has obvious cyclical changes. Affected by the downstream demand, the supply has exceeded the demand in the past few years, and the operation of silicon wafer manufacturers is relatively difficult. Therefore, although the price of silicon wafers has increased since 2020h2, the driving force of new production capacity of large overseas factories is not strong, and there is no ability to quickly increase production capacity in a short time. We expect that the price of silicon wafer will remain high before the new production capacity of large overseas manufacturers is opened. With the improvement of production capacity and yield of domestic manufacturers, it will enter a period of rapid development, and the domestic substitution process will speed up under the shortage of large overseas manufacturers.
Acquire Jiangsu Gaoxin, enter the field of high-frequency and high-voltage rectifier devices, and create an integrated platform. The company completed the M & a project of Jiangsu Gaoxin in August 2021. Its main products include high-frequency and high-voltage diodes, which is the downstream of the original business of the company. After the acquisition of Gaoxin, the company completed the whole industrial chain layout of monocrystalline silicon rod, silicon wafer and high-voltage rectifier devices. At the same time, the construction of “production project of silicon diffuser for device chip, special high voltage and vehicle high-power diode” is also being carried out, with a total investment of no less than 1 billion yuan. The company’s business further extends downstream to create the advantages of the whole industrial chain. In the future, the company expects to steadily increase the profit scale of small-size silicon material business, smoothly put the polishing chip production line into operation, drive the continuous development of downstream discrete device business, build an integrated industrial chain platform from upstream silicon rod to silicon wafer and then to discrete devices, give full play to the synergy of industrial chain and improve its profitability and industrial competitiveness.
Investment suggestion: it is estimated that the company will realize the net profit attributable to the parent company of 127 million yuan, 181 million yuan and 265 million yuan from 2021 to 2023, corresponding to 50 times, 35 times and 24 times of PE. Considering that the company, as an excellent manufacturer in the field of silicon materials in China, has a leading profit level in the industry and is covered for the first time, the company is given a “buy” rating.
1. Prompt that the demand of the downstream industry is less than the expected market demand; 2. The capacity expansion of the company’s production line is less than expected; 3. Price fluctuation of upstream raw materials; 4. The use information of the research report is not updated in time:
