\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 745 Wingtech Technology Co.Ltd(600745) )
Event:
Recently, the company’s share price in the secondary market fluctuated to some extent. In order to stabilize investors’ expectations and effectively protect the legitimate rights and interests of investors, the company issued the explanatory announcement on recent operation on March 25, 2022.
Comments:
I. semiconductor business:
As the leader of vehicle specification semiconductor, ANSYS semiconductor under the company maintained a rapid growth trend in the first three quarters of 2021, and its profitability reached an all-time high. Since the fourth quarter of 2021, Ansteel has further benefited from the trend of doubling the demand for power devices for electric and intelligent vehicles, continued to give full play to the advantages of vehicle specification semiconductors and continuously improved its profitability.
In 2022, Anse will further benefit from the trend of increasing the demand for power devices by electric and intelligent vehicles, continue to give full play to the advantages of the company’s vehicle specification semiconductor, continuously optimize the product structure and expand production capacity on the basis of long-term cooperative relations with many automobile manufacturers and Tier1, increase R & D investment, and strongly enter the market of IGBT, medium and high voltage MOSFET, analog, silicon carbide (SIC) and gallium nitride (GAN), To support the high-speed development goal of Anse in the next five years.
Automobile business is one of the main driving forces for the growth of Anse’s product demand in the future. At present, the application fields of Anshi products include automobile, industry, consumption and so on. Among them, the income of automobile industry accounts for about 50%, and that of industry accounts for about 70%. From 2022, not only the increase of electronic devices on traditional vehicles, but also more application scenarios, and the demand for power devices has increased several times; With the electric and intelligent development of new energy vehicles, the demand for Anse products is also very strong.
IGBT has been successfully streamed. According to the announcement of the company on March 10, 2022, Wingtech Technology Co.Ltd(600745) wholly owned subsidiary Nexperia B 5. (“Anson semiconductor”) established the China Research Institute in 2021, focusing on the research and development of new products such as high-voltage power devices and analog IC. At present, the insulated gate bipolar transistor (IGBT) series products independently designed and developed by the company have been successfully streamed, made phased significant progress, and all parameters meet the design requirements.
IGBT is not only the core device of power conversion, but also the main supporting technology of new energy and energy-saving and low-carbon economy. It has the characteristics of fast switching speed and high current carrying density, and has a wide application market. It is mainly oriented to new energy vehicles, photovoltaic / wind power generation, smart grid, high-power power supply, industrial control, household appliances and other fields. It has large market space, high technical barriers, and pays attention to the accumulation of engineer experience and brand reputation. It is a high-quality track in semiconductors.
II. Product integration business:
In the first half of 2021, affected by the rising cost of upstream raw materials, the net profit level increased in the third quarter of 2021. Benefiting from the company’s strategic layout and R & D investment since 2020, the company’s product integration business has undergone fundamental changes. The products are constantly developing towards diversification and high-end, expanding from mobile phones to non mobile phone businesses such as laptop, IOT, servers and automotive electronics, and continuously optimizing the customer structure, extending from the consumer field to the industrial, automotive and other fields. At present, the mobile ODM business is progressing smoothly, and the gross profit margin has improved year-on-year. The non mobile business continues to obtain new customers and orders, and promote new projects in an orderly manner.
According to the company’s announcement on March 11, 2022, the company’s product integration business has carried out computer, smart home and other business cooperation with specific overseas customers, and signed cooperation agreements. Recently, the smart home project that the company cooperates with specific overseas customers officially began mass production and realized normal shipment. The total amount of project cooperation is expected to be about 5 billion yuan.
The company’s product integration business has expanded from traditional mobile phone ODM to broader fields such as tablet, laptop, IOT, server and automotive electronics, and has accumulated rich R & D and manufacturing experience. The company’s cooperation with specific overseas customers in product integration business has expanded the company’s product field and optimized the company’s customer structure, which will have a positive impact on the company’s operating results in 2022 and future years. As the first cooperation project, the smooth mass production and shipment of smart home also laid the foundation for the company to carry out multi product cooperation with specific overseas customers.
III. optical business
On February 7, 2021, Wingtech Technology Co.Ltd(600745) and Ofilm Group Co.Ltd(002456) signed the acquisition intention agreement. The company plans to purchase the business assets related to the supply of cameras to specific overseas customers owned by Ofilm Group Co.Ltd(002456) in cash. As of November 3, 2021, the operating assets purchased by the company from Jiangxi Jingrun have completed equipment commissioning, the trial production line has been put into use and achieved output, and the company has determined the mass production plan with specific overseas customers. As of December 1, 2021, the first batch of mass-produced products have been delivered, and the products have entered the stage of mass delivery.
In the fourth quarter of 2021, the product verification and shipment of the optical business have made good progress. The optical business will expand from a single customer to multiple customers, and the products will begin to be distributed to multiple product lines, covering mobile phones, laptops, IOT, car cameras and other fields, deeply cutting into the optical track.
IV. investment suggestions:
Earnings forecast, valuation and rating: considering that the company’s ODM business in 2021 is affected by weak downstream terminal demand and
Affected by the rising price of upstream raw materials, we lowered the company’s net profit attributable to the parent company for 21 years to 2.913 billion yuan (- 18.14%). Considering the expense impact of the company’s ODM business layout on specific overseas customers in 2022 and 2023 and the expense cost impact of the optical business in the process of capacity utilization climbing, we reduced the company’s net profit attributable to the parent company in 2022 and 2023 to 4.502 billion yuan (- 22.14%) and 6.029 billion yuan (- 20.31%). At present, the market value of about 120 billion yuan corresponds to PE of 40x, 26x and 19x respectively. In view of the card power semiconductor market after the company’s merger and acquisition of Anse, its largest downstream field is the automotive field. Under the background of the rapid development of new energy vehicles, Anse is expected to enter a rapid development channel. As a leading ODM enterprise, ems2 will be launched in the future 0 strategy, relying on the accumulation of ANSYS semiconductor, improve the semiconductor one-stop solution ability of Wentai consumer electronics business through SIP self-made. In addition, Wentai acquired Ofilm Group Co.Ltd(002456) optical module assets. In the future, optical modules and sip modules are expected to further open the profit space of Wingtech Technology Co.Ltd(600745) odm business, so it maintains the “buy” rating.
Risk tip: the volume of new energy vehicles is lower than expected, and the price of raw materials is rising.
