\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
Performance summary: in 2021], the company achieved an operating revenue of 1.5 billion yuan, a year-on-year increase of 56.9%; The net profit attributable to the parent company was 410 million yuan, a year-on-year increase of 194.6%, and the performance was in line with expectations.
Benefiting from the optimization and upgrading of product structure and the accelerated expansion of emerging markets, the company’s performance has increased significantly. 2021:1) in terms of revenue, the company allocated more resources to shielded gate MOSFET and IGBT products, and the sales proportion of shielded gate MOSFET increased from 31.7% in 20 years to 39.0% in 21 years; IGBT achieved more than 80 million sales, a year-on-year increase of more than 5 times, and the sales proportion increased from 1.3% in 20 years to 5.4% in 21 years. 2) From the profit side, during the reporting period, the net profit attributable to the parent company nearly tripled, with a gross profit margin of 39.1%, a year-on-year increase of 13.8pp; The net interest rate was 27.4%, with a year-on-year increase of 12.8pp, which mainly benefited from the optimization and upgrading of the company’s product structure and the investment of more resources in medium and high-end application fields. 3) From the expense side, the company’s sales expense rate during the reporting period was 1.4%, a year-on-year decrease of 0.1pp; The management expense ratio was 2.1%, with a year-on-year decrease of 0.5pp; The R & D expense rate was 5.3%, a year-on-year decrease of 0.1pp.
Outstanding R & D achievements and continuous improvement of market structure and customer structure. During the reporting period, the company continued to increase R & D investment and made breakthroughs in a number of high-end products. 12 inch 1200V high frequency low saturation voltage drop IGBT products have achieved stable mass production and have been applied in photovoltaic inverter industry. The development of SiC MOS platform for 1200V new energy vehicles was carried out smoothly. The first streamer verification of 1200V SiC MOSFET and 650V e-mode GaN HEMT was completed, and the product performance reached the advanced level of China. At the same time, the company seized the opportunity of accelerating the localization of downstream customers and successfully introduced products into a number of emerging application fields. During the reporting period, the company focused on introducing Byd Company Limited(002594) , and has achieved mass supply of more than ten products; The company actively grasps the rapidly growing demand under the background of “double carbon” and focuses on the photovoltaic inverter and photovoltaic energy storage market. IGBT and MOS products have been sold in large quantities in China’s leading enterprises, which is expected to drive the company’s performance to continue to grow at a high speed in 2022.
Maintain long-term strategic cooperation with the head wafer factory, and the follow-up capacity is highly guaranteed. The company has maintained a continuous and close cooperative relationship with Huahong Hongli, and has been put into operation in its first plant, second plant, third plant and seventh plant. The company has become one of the semiconductor power device design companies with the largest chip investment of China’s 8-inch and 12 inch chip process platform, and the overall production capacity continues to grow.
Profit forecast and investment suggestions. It is estimated that from 2022 to 2024, the company’s EPS will be 3.72/4.56/5.88 yuan respectively, and the corresponding PE will be 50 / 41 / 31 times respectively. Considering the leading position of the company among Chinese power device manufacturers and continuously promoting the optimization and upgrading of product structure, the competitiveness of the company is expected to be further improved and maintain the “buy” rating.
Risk tip: the risk of macroeconomic fluctuations; The global covid-19 epidemic has repeatedly brought downstream demand fluctuations
