\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
Events
Wuxi Nce Power Co.Ltd(605111) released the annual performance report for 2021: the company achieved an operating revenue of 1.498 billion yuan in 2021, with a year-on-year increase of 56.89%, a net profit attributable to the parent company of 410 million yuan, with a year-on-year increase of 194.55%, and a net profit attributable to the parent company of 402 million yuan after deduction, with a year-on-year increase of 198.12%.
Key investment points
In 2021, the profit increased sharply and the profitability increased significantly
In 2021, the company’s net profit increased significantly, mainly due to the increasing prosperity of the power semiconductor industry. Focusing on market demand, customer demand and industry development trend, the company actively carried out R & D upgrading and product technology iteration, continued to develop and maintain supply chain resources, strive for more capacity support, optimize market structure, customer structure and product structure, and explore emerging markets and develop key customers.
In terms of breakdown products, the revenue of power devices in 2021 was 1.352 billion yuan, with a year-on-year increase of 73.77%, of which the proportion of trench MOS / barrier MOS / IGBT was 45.31% (year-on-year -10.48pct) / 38.96% (year-on-year + 7.27pct) / 5.39% (year-on-year + 4.05%). In addition, the annual revenue of chip products was 142 million yuan, accounting for 9.53% from 18.39%; In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 39.12% (year-on-year + 13.75pct), of which the gross profit margin of power devices reached 38.71%, a significant increase of 12.84pct year-on-year. In terms of period expenses, the company’s control ability is improved. During 2021, the expense rate (excluding R & D) is 2.28% (year-on-year -1.05pct), of which the sales expense rate is 1.39% (year-on-year -0.06pct), the management expense rate is 2.06% (year-on-year -0.46pct), and the financial expense rate is – 1.16% (year-on-year -0.52pct).
Increase R & D investment and continuously promote the upgrading of various product line platforms
In 2021, the company invested a total of 796892 million yuan in R & D, with a year-on-year increase of 54.05%, accounting for 5.32% of the operating revenue. Nearly 300 new products were added throughout the year, and all product platforms showed brilliant performance: IGBT platform: 12 inch 1200V high-frequency low saturation voltage drop IGBT has been stably mass produced, and has been widely used in many typical customers in the photovoltaic inverter industry; 650V high density grooved gate IGBT using carrier storage technology has been preliminarily developed; Many IGBT module products of the company have entered small batch production.
Sj-mos platform: deep trench sj-mos fourth generation trench gate products have further completed the construction of 650V and 700V product platforms, and the super junction fourth generation platform has formed a complete product series of 500V ~ 700V; The development of 200V low-voltage SJ MOS has made phased progress, 12 inch 650V ~ 700vsj MOS has entered stable mass production, and the fifth generation sj-mos with ultra-low characteristic on resistance has been produced.
Sgt-mos platform: the medium voltage p-type Sgt MOS platform has achieved mass production, and its electrical performance has reached the international standard; The specification and model of low-voltage second-generation Sgt MOS platform have been expanded, and the number of products has been increased to 18; Low voltage fast recovery Sgt MOS completed the preliminary design and wafer wafers, and the phased wafer level test results met the expectations.
Trench MOS platform: Based on the low-voltage CSP product platform of 8-inch production line, we have expanded a series of products and completed the design & process simulation and single plant development of high-power medium voltage p-trench MOS with new structure and high reliability; The development of several n-type medium and low voltage process platforms has been completed on the 12 inch production line.
The third generation semiconductor power device platform: the development of 1200V SiC MOS platform for new energy vehicles is progressing smoothly, the first chip verification of 1200V SiC MOSFET is completed, and some of the product performance has reached the advanced level in China; 650V e-mode GaN HEMT has been verified for the first time, and part of the product performance has reached the advanced level in China.
Strengthen production capacity guarantee, automobile and photovoltaic are the main line of long-term growth
In terms of production capacity, the company has established a long-term strategic cooperative relationship with Huahong Hongli, and has been put into operation in Huahong Hongli plant 1, plant 2, plant 3 and plant 7. At present, the company has become one of the semiconductor power device design companies with the largest chip investment in China’s 8-inch and 12 inch chip process platform, and the overall production capacity continues to grow. In addition, in 2021, the company has carried out risk batch verification of products in an overseas chip foundry, invested the first engineering batch in a domestic chip foundry, and continuously developed chip foundry suppliers as a supplement to production capacity.
Automobile and photovoltaic business will be the main line of the company’s long-term growth. In 2021, the company focused on introducing Byd Company Limited(002594) , and has realized the 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 sales proportion of automobile electronic products has increased rapidly; 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.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2024 will be 2.080 billion yuan, 2.697 billion yuan and 3.206 billion yuan respectively, and its EPS will be 3.78, 4.88 and 5.82 yuan respectively. The corresponding PE of the current stock price will be 51, 39 and 33 times respectively, maintaining the “recommended” investment rating.
Risk tips
Downside risk of industry prosperity, risk of product R & D progress falling short of expectations, risk of intensified industry competition, risk of overseas policy changes, etc.
