\u3000\u3 Guocheng Mining Co.Ltd(000688) 508 Wuxi Chipown Micro-Electronics Limited(688508) )
On March 17, Wuxi Chipown Micro-Electronics Limited(688508) announced that it planned to raise no more than 1.099 billion yuan, of which 384 million yuan was used for the high-voltage power supply and electric drive power chip project of new energy vehicles, 473 million yuan was used for the industrial digital power management chip and supporting power chip project, and 242 million yuan was used for the project of Suzhou Research and development center.
Develop new energy vehicle market and promote the industrialization of high-voltage power supply + power chip. The rapid development of new energy vehicles has boosted the demand for massive high-voltage power supplies and power chips Wuxi Chipown Micro-Electronics Limited(688508) has sufficient technical reserves in the field of automotive semiconductors. The company has a forward-looking layout, developed isolation scheme and high-voltage process, and started vehicle regulation 26262 certification. In this fixed increase, the company aims to develop a series of chips for 400V / 800V battery oriented high-voltage power conversion and distribution system and high-voltage drive system (including high-voltage power control, high-voltage half bridge drive, high-voltage isolation drive, high-voltage auxiliary source chip and intelligent IGBT and SiC devices) for new energy vehicle OBC, PDU and electric drive system, and support the construction of vehicle specification semiconductor reliability experiment center and sealed test production line to strengthen capacity guarantee. Relying on the technical basis of high-voltage power supply and high-voltage drive and the reserve of vehicle specification level technology, the company fully aligns PI and starts to develop a new growth curve of the company in the future high-growth new energy car track.
Enter the high-end industrial control market and lay out industrial grade digital power management. The company has attached great importance to the industrial chip market for a long time, and entered the field of industrial drive chips in 13 years. Since then, it has continued to enter the markets of smart meters, smart circuit breakers, communication base stations, servers and other markets, taking the lead in realizing the import substitution of high-voltage power chips. At present, with the rapid rise of data centers, servers, base stations, photovoltaic inverters, energy storage and other fields, the demand for power management chips has increased significantly. The company’s goal is to develop industrial power chips, including high-power digital power control chips, high-frequency switch modules integrating bridge drive and intelligent sampling, high-frequency Gan drive chips, intelligent Gan devices and other products, and build an industrial semiconductor test center.
The three major product lines have made efforts, and the platform type scheme company has emerged: through years of research and development reserves, the company is currently selling a total of more than 1200 models of power management chips. There are three categories of application series product lines, including household appliances, standard power supply and industrial control power. In the field of household appliances, the company’s brand customers of household appliances are continuously increasing, with a revenue of 346 million yuan in 21 years, a year-on-year increase of 89.47%, of which the revenue of household appliances accounts for 25%, and it is expected to be further improved in the future. In the field of fast charging, the company has achieved a revenue of about 60 million in 21 years, accounting for more than 20% of the standard power supply. In China’s fast charging e-commerce market, 20W secondary chip shipments ranked first and primary chips ranked second. In addition, 40W and 66W full sets of chips (primary + secondary synchronous rectifier + protocol chip) have been shipped, and higher power products are being developed, which continue to be sold in large quantities to brand key customers. With the enrichment and improvement of the company’s product line, it has developed from a single high-voltage power supply product to a system level complete solution supplier. Many kinds of power management chips such as AC-DC, DC-DC and gatedriver (HV & LV) can be applied to the same machine, which shortens the development cycle of end customers and significantly improves the synergy.
Investment suggestion: we expect the net profit attributable to the parent company in 2022 / 23 / 24 to be RMB 284 / 390 / 550 million respectively, and the corresponding current price (closing price on March 18, 2022) PE to be 41 / 30 / 21 times respectively. We are optimistic about the layout of the company’s fast charging + home appliances + industrial control high-quality track. At present, the overweight automotive electronics and high-end industrial control market are more likely to realize the card position in advance and grasp the opportunity of domestic substitution. For the first coverage, give a “recommended” rating.
Risk warning: product R & D risk; Risk of declining prosperity of the industry; Market competition risk.
