\u3000\u3 Guocheng Mining Co.Ltd(000688) 508 Wuxi Chipown Micro-Electronics Limited(688508) )
Localization substitution accelerated, and the performance continued to be excellent
On March 17, 2022, the company released its annual report for 2021. In 2021, the company’s operating revenue was 753 million yuan, a year-on-year increase of 75.44%, and the net profit deducted from non parent company was 152 million yuan, a year-on-year increase of 88.42%. Excluding the impact of share based payment expenses, the company’s net profit deducted from non parent company in 2021 was 189 million yuan, with a year-on-year increase of 134.51%. Considering that the analog chip track is in the rapid penetration period of localization substitution, we raised the profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be RMB 267 / 371 / 547 million (the original value in 20222023 will be RMB 249 / 339 million respectively), EPS will be RMB 2.36/3.28/4.83, and the current share price corresponding to PE is 43.3/31.1/21.1 times, maintaining the “buy” rating.
Implement the fixed increase plan, jointly build the vehicle specification level sealed test production line, and expand the application terminal to new energy
On March 17, 2022, the company issued a fixed growth plan, which plans to raise nearly 1.1 billion funds for R & D and industrialization projects of new energy vehicle power supply, industrial digital power supply and power devices. For the automotive power chip project, the company will lay out the high-voltage power control chip, high-voltage isolation drive chip, intelligent IGBT and SiC devices for the high-voltage PDU and electric drive system of 400V / 800V battery, and build a vehicle specification level sealed test production line. For the industrial digital power chip project, the company will lay out high-power digital power control chips, high-frequency Gan drive chips and intelligent Gan device Gan modules for high-power industrial scenes such as data center, server, base station, photovoltaic inverter and energy storage, and build an industrial semiconductor test center.
R & D investment has increased significantly, and the projects under research have high aspirations
Due to the year-on-year increase of 36.1% in the number of R & D personnel in 2021 and the increase of equity payment expenses, the R & D investment in 2021 increased by 124.8% year-on-year. In the research project, the total investment scale of the “new motor drive chip and module” project reaches 100 million yuan, which focuses on half bridge drive and IPM modules applied in smart grid and industrial power supply; The total investment scale of the “digital isolation drive” project reaches 80 million yuan. It focuses on the digital isolation drive chips applied in photovoltaic, communication base stations and other fields. We believe that these two projects will significantly improve the richness of the company’s product matrix and promote the company’s development from AC / DC company to flat power company.
Risk warning: there is a risk of continuous tightening of upstream capacity; There is great uncertainty in the speed of customer expansion; There is uncertainty in the research and development progress of new products.
