\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
The company’s performance growth in 2021 was bright and maintained the “buy” rating
The company achieved a revenue of 1.498 billion yuan in 2021, with a year-on-year increase of 56.89%; The net profit attributable to the parent company was 410 million yuan, a year-on-year increase of 194.55%. Benefiting from the high prosperity of the industry, the gross profit margin of the company reached 39.12% in 2021, with a year-on-year increase of 13.75 PCT. With the help of the strategic cooperation relationship with Huahong Hongli, the foundry capacity of the company has increased rapidly, and actively developed new wafer foundry factories at home and abroad to provide support for the sustainable development of the company. The company has also actively built its own sealing and testing capacity, and the power-based integration of the packaging subsidiary can meet nearly 40% of the company’s independent sealing and testing needs. The company’s product demand is full, and the continuous expansion of production capacity can be expected. We added a new profit forecast for 2024. Considering the equity incentive fee, we lowered the forecast for 20222023. It is estimated that the net profit attributable to the parent company in 20222024 will be 481 / 685 / 892 million yuan (the original value in 20222023 will be 522 / 704 million yuan), the corresponding EPS will be 3.37/4.80/6.25 yuan, and the corresponding PE of the current stock price will be 57.1/40.1/30.8 times, maintaining the “buy” rating for the company.
R & D has achieved fruitful results, the construction of various product platforms has been further improved, and the item number has been further expanded
In terms of IGBT, the company’s 12 inch 1200V high-frequency low saturation voltage drop IGBT products have been stably mass produced, and the 650V high-density grooved gate IGBT products have been preliminarily developed. In terms of MOSFET, the fourth generation superjunction platform of the company has been continuously improved, and a complete product series of 500700v has been formed. The fifth generation superjunction products have been produced in samples; The medium voltage p-type sgtmos platform realizes mass production, the model of low-voltage second-generation sgtmos platform is further expanded, and the low-voltage fast recovery sgtmos completes the wafer flow. In terms of three and a half generations, the company has completed the first streaming verification of 1200vsicmosfet and 650ve modeganhemt, and some performances have reached the advanced level of China.
The product structure and customer structure have been significantly improved to achieve high-quality development
The company seizes the opportunity of high prosperity in the downstream, introduces more high-end products into emerging application fields, and develops many industry leading customers. In terms of product structure: the proportion of trench MOS products of mature process platform has decreased from 55.79% in 2021 to 45.31%, while the proportion of more advanced shielded gate MOS has increased from 31.69% to 38.96%. IGBT products were sold in large quantities rapidly and achieved a sales volume of 80.51 million yuan in the whole year, with a year-on-year increase of 529.44%. In terms of market and customer structure, the company actively develops medium and high-end industries such as automotive electronics, photovoltaic inverter and energy storage, 5g base station power supply, industrial automation and high-end electric tools. IGBT and MOSFET products have formed mass sales among China’s leading enterprises in the fields of new energy vehicles and photovoltaic energy storage, which is expected to provide important support for the rapid growth of the company in 2022.
Risk tip: OEM capacity development is less than expected; Decline in industry demand; Increased competition and decline in gross profit margin.
