\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
Core view
Driven by price increases and downstream demand, the company’s net profit doubled in 2021. In 2021, the company realized a 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 gross profit margin was 39.12%, a year-on-year increase of + 13.75pct; The net interest rate was 27.40%, with a year-on-year increase of + 12.80pct. In 2021, the company sold 2.216 billion power devices, a year-on-year increase of + 21.79%; ASP of power device is about 0.61 yuan / piece, with a year-on-year increase of + 42.68%.
The demand for automobile and photovoltaic is strong, and the proportion of sgtmosfet and IGBT of the company has increased significantly. In 2021, the company actively expanded the fields of automobile, photovoltaic energy storage and inverter, and the products were sold in large quantities in Byd Company Limited(002594) automobile and Chinese head inverter manufacturers. In 2021, grooved MOSFET, sgtmosfet and IGBT products accounted for 45.31%, 38.96% and 5.39% respectively. IGBT products accelerated in 2021h2, with an annual revenue of 805144 million yuan, a year-on-year increase of + 529.44%.
The demand in the consumer sector slowed down, and the revenue and profit of 2021q4 decreased slightly month on month. In 2021q4, the company achieved a revenue of 399 million yuan, a year-on-year increase of + 38.06% and a month on month increase of – 5.55%; The net profit was 100 million yuan, a year-on-year increase of + 159.64% and a month on month increase of – 26.82%. By the end of 2021, the book value of the company’s inventory was 240 million yuan, a year-on-year increase of + 128.85% and a month on month increase of + 62.70%.
Close cooperation with Huahong, continuous expansion of OEM capacity and contribution increment. The company is an important major customer of Huahong power semiconductor. In 2021, the company purchased 405 million yuan from Huahong 8 inches and 320 million yuan from Huahong 12 inches. With the continuous expansion of Huahong 12 inch line, the company’s production capacity is expected to be further improved. 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.
IGBT, SiC and MOSFET platforms continue to be developed, and automotive and photovoltaic energy storage can be expected in the future. (1) In terms of IGBT products, 12 inch 1200V high-frequency low saturation voltage drop IGBT has been stably mass produced in the field of photovoltaic inverter; 650V high density grooved gate IGBT has been preliminarily developed; Several IGBT modules have entered small batch production. (2) In terms of SiC products, the first streaming verification of 1200vsicmosfet of new energy vehicle has been completed. (3) In terms of MOSFET, the 12 inch 650v-700vsjmos has entered stable mass production, the medium voltage p-type sgtmos platform has achieved mass production, and the low-voltage second-generation sgtmos platform has completed the expansion of specifications and models.
Profit forecast: we expect the net profit attributable to the parent company in 2022, 2023 and 2024 to be RMB 485 / 649 / 896 million respectively, corresponding to 54 / 40 / 29 times of the share price PE on March 22, maintaining the “buy” rating.
Risk tip: downstream demand slows down, product R & D and verification are less than expected, and production capacity is less than expected.
