\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 869 Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) )
Event: on March 25, the company released its 2021 annual report. During the reporting period, the company achieved an operating revenue of 9.536 billion yuan, a year-on-year increase of 15.99%, and the net profit attributable to shareholders of listed companies was 709 million yuan, a year-on-year increase of 30.32%.
The company is the world’s leading enterprise in optical fiber and optical cable, with stable growth in business performance: the company is the world’s leading provider of optical fiber preform, optical fiber, optical cable and comprehensive solutions. It has been deeply cultivated in the industry for many years, and has solid technical reserves and extensive customer base. According to the CRU report, after experiencing the downward pressure since the second half of 2018, the global total demand for optical fiber and optical cable again exceeded 500 million core kilometers in 2021. The demand in major regions of the world has resumed the growth trend, and the relationship between supply and demand in the industry tends to improve. The company overcame the pressure of industry competition and steadily improved its operating performance. In 2021, the operating revenue was 9.536 billion yuan, a year-on-year increase of 15.99%, the net profit attributable to shareholders of listed companies reached 709 million yuan, 544 million yuan in the same period of last year, a year-on-year increase of 30.32%, and the basic earnings per share was 0.94 yuan, a year-on-year increase of 30.56%.
Participate in the investment and acquisition of tus semiconductor and actively layout the third-generation semiconductor industry: on March 10, the company issued a foreign investment announcement and has formed a bidding consortium. It plans to invest 780 million yuan to participate in the overall transaction plan for the merger and reorganization of Wuhu terahertz Engineering Center Co., Ltd. and Wuhu Tus Semiconductor Co., Ltd. after the transaction is completed, the company will hold about 37.10% of the equity of tus semiconductor in total, Tus semiconductor will become a subsidiary of the company, and terahertz Engineering Center will become a subsidiary of tus semiconductor, which will be included in the scope of the company’s consolidated financial statements. Tus semiconductor and Wuhu terahertz Engineering Center are mainly engaged in the process R & D and manufacturing of third-generation semiconductor products represented by silicon carbide and gallium nitride. Their main businesses include R & D, production and sales of silicon carbide and gallium nitride epitaxy, third-generation semiconductor power and RF chip manufacturing, power module and power single tube packaging and testing. The acquisition will help the company to explore the market of third-generation semiconductor in mobile communication and new energy vehicles related to the company’s main business, and improve the company’s core competitiveness.
Benefiting from the boom of new energy vehicles and new energy power generation, the third generation semiconductor market has broad prospects: according to trendforce, the output value of the third generation semiconductor will increase from US $980 million in 2021 to US $4.71 billion in 2025, with a compound annual growth rate of 48%. Silicon carbide (SIC) is the core of the third generation semiconductor material. It is one of the ideal materials for making high-temperature, high-frequency, high-voltage and high-power devices. The downstream includes photovoltaic, wind power, rail transit, new energy vehicles, charging piles and other fields. According to yole report, the global market scale of gallium nitride RF devices is expected to reach US $2 billion in 2025. In the scenario of high-frequency and high-power applications, gallium nitride RF devices are expected to continue to replace silicon-based LDMOS, accounting for about 50% of the RF device market in 2025.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be RMB 12.111 billion, RMB 15.139 billion and RMB 18.772 billion respectively, and the net profit attributable to the parent company will be RMB 1.018 billion, RMB 1.387 billion and RMB 1.713 billion respectively. We give the “Buy-A” investment rating for the first time.
Risk tip: the prosperity of the industry is lower than expected; Market development is less than expected; The investment progress is not as expected.
