\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
The company issued the 2021 annual report. The company achieved a revenue of 1.498 billion in 2021, with a year-on-year increase of 56.89%; The net profit attributable to the parent company was 410 million, with a year-on-year increase of 194.55%, and the performance grew rapidly. Among them, 2021q4 achieved an operating revenue of 399 million yuan in a single quarter, with a year-on-year increase of 38.06%; The net profit attributable to the parent company was 100 million yuan, a year-on-year increase of 159.64%. The company achieved rapid performance growth in 2021, mainly due to the rapid development of downstream automotive electronics, photovoltaic inverter, photovoltaic energy storage and other application scenarios, driving the rising prosperity of the power semiconductor industry. At the same time, it is also inseparable from the company’s active expansion of emerging markets and development of key customers.
The product structure was continuously optimized and the gross profit increased significantly. In 2021, the company’s gross profit margin was 39.12%, with a year-on-year increase of 13.75pct. Compared with the same period of the previous year, the gross profit margin increased significantly, and the profitability was continuously optimized. With the support of the industry, the company continued to optimize its product structure, allocate more resources to sgt-mosfet, IGBT and other products with higher profitability, and achieve rapid volume. In 2021, sgt-mosfet products accounted for 38.96%, with a year-on-year increase of 7.27pct; IGBT products achieved a sales revenue of 805144 million, with a year-on-year increase of 529.44%.
Continue to layout new businesses and build multi product lines of MOSFET, IGBT, third-generation chemical semiconductor and some driving IC. The company’s products cover a full range of products with voltage ranging from 12V to 1700V. Mass production of five series of 12 inch 1200V IGBT products; 650V high density grooved gate IGBT products have been preliminarily developed; 12 inch sgt-mos products have successfully entered the head enterprise customers such as new energy vehicles, electric tools, lithium battery protection and high-end power supply. The newly developed high reliability products meet the requirements of the communication industry and enter the stage of mass production; The development of SiC MOS platform for 1200V new energy vehicles was carried out smoothly, the first chip verification of 1200V SiC MOSFET was completed, and part of the product performance reached the advanced level in China.
Photovoltaic inverter and photovoltaic energy storage are the main growth points in 2022. In 2021, the company actively expanded middle and high-end industries such as automotive electronics, 5g base station, industrial automation, photovoltaic inverter and photovoltaic energy storage, successfully introduced Byd Company Limited(002594) and realized the mass supply of more than a dozen products in automotive electronics. According to the disclosure of the company’s annual report, in 2022, the company will focus on the development of photovoltaic inverter and photovoltaic energy storage market, and take it as the main growth point of performance in 2022. At present, the company’s IGBT and MOSFET products have been sold in large quantities in the leading enterprises of photovoltaic inverter and photovoltaic energy storage in China.
Profit forecast and investment suggestions: Wuxi Nce Power Co.Ltd(605111) is one of the leading power semiconductor design enterprises in China, with rich product lines and wide applications, and gradually layout the sealing and testing links of power devices. The company has deeply developed MOSFET and IGBT design, accumulated profound experience, maintained strong R & D technology advantages, and the track growth rate is fast. At the same time, it has deepened the domestic substitution process, and the company is expected to increase its share. The company is expected to realize a net profit attributable to the parent company of RMB 555 / 671 / 972 million from 2022 to 2024, maintaining the “buy” rating.
Risk warning: the downstream demand is less than expected, and the progress of new product research and development is less than expected.
