\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
Event:
The company released its annual report for 2021. In 2021, the company achieved an operating revenue of 1.498 billion yuan, 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%; The net profit attributable to the parent company after non deduction was 402 million yuan, with a year-on-year increase of 198.12%.
Comments:
Power semiconductors maintained a high boom, and 21q4 achieved year-on-year high growth. The data published in the company’s annual report is consistent with the previous performance express, with a revenue of 399 million yuan corresponding to 21q4, a year-on-year increase of 38.06% and a month on month decrease of 5.55%; The net profit attributable to the parent company was 100 million yuan, with a year-on-year increase of 159.64% and a month on month decrease of 26.82%; The net profit attributable to the parent company after deduction was 97 million yuan, with a year-on-year increase of 165.76% and a month on month decrease of 28.17%. During the reporting period, the subdivision of power semiconductors continued to have a high boom, the domestic substitution process was accelerated, and the products continued to be in short supply, driving the high year-on-year growth of 21q4 revenue and net profit. The company’s 21q4 profit fell more month on month, due to the provision of employee bonuses and other expenses.
The product structure and market structure are continuously optimized and upgraded to help the long-term development of the enterprise. During the reporting period, the company took advantage of the high prospect of power semiconductor, seized the opportunity of accelerating the domestic substitution process of downstream customers under the background of core shortage, actively adjusted the product structure, market structure and customer structure, and further expanded the market scale and influence. In terms of product structure: as the mature process platform with the longest continuous mass production time of the company, the company continued to reduce its sales proportion during the reporting period from 55.79% in the same period of last year to 45.31% in the current period, and allocated more resources to screen gate power MOSFET (sgt-mosfet) and IGBT products; As the company’s current rapid and large-scale products, the sales volume of IGBT products in 2021 was 805144 million yuan, an increase of 529.44% compared with the same period last year, and its sales proportion increased from 1.34% to 5.39%; Market / customer structure: during the reporting period, the company actively developed middle and high-end industries such as automotive electronics (including fuel vehicles and new energy vehicles), photovoltaic inverter and photovoltaic energy storage, 5g base station power supply, industrial automation, high-end electric tools, and focused on introducing Byd Company Limited(002594) and other large customers in the automotive electronics market. At present, the company has achieved mass supply of more than a dozen products, At the same time, the company’s products have also entered the whole machine parts factories of several automobile brands, and the overall sales proportion of automobile electronic products has been rapidly increased; At the same time, the company seizes the fast-growing market demand of new energy carbon peak and carbon neutral, and focuses on the photovoltaic inverter and photovoltaic energy storage market. IGBT and MOSFET products have been sold in large quantities in China’s leading enterprises. The photovoltaic inverter and photovoltaic energy storage field will become an important performance growth point of the company in 2022 and help the long-term development of the enterprise.
It is proposed to raise funds for the construction of silicon carbide industrialization projects, and continue to promote the upgrading of the company’s product structure. The company announced on November 11, 2021 that it plans to raise a total of no more than 1.45 billion yuan, including 200 million yuan for the R & D and industrialization projects of the third generation semiconductor SiC / GaN power devices and packaging test, and 600 million yuan for the R & D and industrialization projects of power driven IC and intelligent power module (IPM), RMB 500 million was invested in the R & D and industrialization projects of SiC / IGBT / MOSFET and other power integration modules (including vehicle specification level). Through this fund-raising and production expansion, the company is expected to expand the production scale of power semiconductor devices, promote the upgrading of product structure, and accelerate the process of domestic substitution.
Profit forecast and investment suggestions. As a leading manufacturer of power devices in China, the company continues to promote the upgrading of product structure, customer structure and market structure, and is optimistic about the long-term growth space under the trend of domestic substitution in the semiconductor field. It is estimated that the EPS from 2022 to 2023 will be 3.81 and 4.60 yuan respectively, and the corresponding PE will be 51 times and 42 times respectively, maintaining the “recommended” rating.
Risk tip: the prosperity of the industry is declining, and the domestic substitution is not as good as expected.
