\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
Event:
The company released its annual report for 2021, with an operating revenue of 1.498 billion yuan in 2021, 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 deduction was 402 million yuan, with a year-on-year increase of 198.12%.
Comments:
Strategic cooperation ensures production capacity, and the structure of products and customers continues to improve
The company has established a long-term strategic cooperative relationship with China’s power wafer foundry leader. It has been put into operation in Huahong Hongli No. 1, No. 2, No. 3 and No. 7 plants, and verified that one foundry at home and abroad is used as a capacity supplement. On this basis, the proportion of grooved MOSFET / shielded gate MOSFET / superjunction MOSFET / IGBT of the company was adjusted from 55.79% / 31.69% / 11.18% / 1.34% to 45.31% / 38.96% / 10.34% / 5.39%, and the proportion of emerging products continued to rise. The company actively expanded its business in automotive electronics, photovoltaic, energy storage and other industries, introduced Byd Company Limited(002594) and other automotive brand customers, and sold IGBT and MOSFET products in large quantities in China’s photovoltaic energy storage head enterprises, boosting the company’s performance growth in 2022.
A number of IGBTs were mass produced, and the first streaming verification of 1200vsicmosfet was completed
In 2021, the company continued to increase investment in research and development, and its products continued to be optimized and upgraded. 12 inch 1200V high frequency low saturation voltage drop IGBT products have been stably mass produced and applied to photovoltaic inverter customers; The preliminary development of 650V high-density grooved gate IGBT has been completed; In addition, a number of IGBT module products have entered small batch production. The development of sicmosfet platform for 1200V new energy vehicles of the company is smooth, and the first streaming verification of the product is completed. In 2022, it is planned to invest 224 million yuan in the R & D and industrialization of SiC / GaN power devices and sealing test, with a target production capacity of 26.4 million power devices.
Earnings forecast, valuation and rating
The company’s performance in 2021 is in line with expectations. We expect that the company’s revenue from 2022 to 2024 will be RMB 2.091/28.15/3.673 billion respectively, the net profit attributable to the parent company will be RMB 528/6.69/822 million respectively, the EPS will be RMB 3.69/4.68/5.75 respectively, and the corresponding PE will be 50 / 39 / 32 times respectively. Corresponding to the 2022 profit forecast, 60 times PE is given, and the target price is 221.68 yuan, which is raised to the “buy” rating.
Risk tips
Risks such as lower than expected demand in downstream market and lower than expected wafer quantity of foundry.
