\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 460 Hangzhou Silan Microelectronics Co.Ltd(600460) )
Events
Hangzhou Silan Microelectronics Co.Ltd(600460) released the annual performance report for 2021: the company achieved an operating revenue of 7.194 billion yuan in 2021, with a year-on-year increase of 68.07%, a net profit attributable to the parent company of 1.518 billion yuan, with a year-on-year increase of 214525%, and a net profit attributable to the parent company of 895 million yuan after deduction of non profits, turning losses into profits year-on-year.
Key investment points
In the fourth quarter, the revenue was the best in the whole year, and the profitability was greatly improved
In Q4 of 2021, the company achieved a revenue of 1.972 billion yuan in a single quarter, the highest in the whole year, with a year-on-year increase of + 49.80% and a month on month increase of + 3.03%. The net profit attributable to the parent company was 790 million yuan, and the net profit attributable to the parent company was 208 million yuan after deducting non recurring profits and losses, mainly due to the increase of 586 million yuan in the net profit due to the adjustment of Shanghai Anlogic Infotech Co.Ltd(688107) and videocore technology equity held by the company according to the fair value at the end of the period.
In terms of subdivided products, in 2021, integrated circuits / discrete devices / light emitting diodes achieved revenue of RMB 2.293/38.13/708 billion respectively, with a year-on-year increase of 61.5% / 73.08% / 81.05% respectively; In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 33.19% (year-on-year + 10.69pct), of which the gross profit margin of integrated circuit / discrete device / LED was 41.76% (year-on-year + 16.04pct) / 32.89% (year-on-year + 8.89pct) / 18.04% (year-on-year + 30.70pct); In terms of period expenses, the expense rate (excluding R & D) in 2021 was 8.41% (year-on-year -3.94pct), including sales expense rate of 1.69% (year-on-year -0.94pct), management expense rate of 4.2% (year-on-year -1.6pct) and financial expense rate of 2.52% (year-on-year -1.4pct). In addition, in 2021, the company’s R & D expenses were 587 million yuan (year-on-year + 36.88%), and the R & D expense rate reached 8.16%.
Smooth expansion of multiple product lines and comprehensive layout of Industrial Automotive photovoltaic
IPM module (home appliances / industry): in 2021, the revenue exceeded 860 million yuan, with a year-on-year increase of more than 100%. It is widely used in industries, home appliances and other fields. Among them, more than 38 million Shilan IPM modules are used by many mainstream white electric machine manufacturers in China (year-on-year + 110%). In addition, the company launched the 2nd generation IPM module, which has higher accuracy, lower loss and higher reliability than the 1st generation IPM module. It is expected that the revenue of IPM module will continue to grow rapidly in the future; MCU (industrial / photovoltaic): in 2021, the company’s electronic control MCU continues to be widely used in many fields, such as industrial frequency converter, industrial UPS, photovoltaic inverter, servo products of textile machinery, various frequency conversion fan applications, electric bicycle and so on; Power device (automobile): in 2021, the main motor drive module of electric vehicle based on v-generation IGBT and FRD independently developed by the company has passed the test in many customers in China and supplied in batches to some customers. At present, the company is accelerating the capacity construction of vehicle specification and industrial power module, and it is expected that the revenue of PIM module will grow rapidly in the future; Fast charging chipset / POE chip / MEMS / LED chip: in 2021, fast charging series products have been applied in Chinese mobile phone brand manufacturers, and the shipment has increased significantly. A variety of POE (Ethernet power supply) chips, including a variety of DC-DC power chips, have been launched, which can meet the needs of various power and complete machine applications in security and other fields. The overall solution is China’s leading / MEMS sensors, with a monthly shipment of nearly 30 million, Most Chinese mobile phone brand manufacturers have used in large quantities and accelerated their expansion to white TV, industry, automobile and other fields. It is expected that the future shipment will further increase / accelerate the research and development and customer expansion of flip chip miniled chips applied to high-density (COB) color screens and mini LED chips for LCD smart area backlight, accelerate the development of high brightness LED lighting chips, and enter automobile lighting, mobile phone backlight Landscape lighting and other medium and high-end chip markets.
OEM, epitaxy and module packaging capacity continued to climb and fully benefited from adhering to IDM mode
In terms of chip OEM, the company’s 5 / 6 / 8-inch line was basically in full production in 2021, of which the 5 and 6-inch line (Shilan integration) produced a total of 2554400 pieces (year-on-year + 7.54%), and ASP was about 650 yuan (year-on-year + 5.3%); The 8-inch production line (Shilan Jixin) produced 657300 pieces in total (year-on-year + 14.90%), ASP was about 1757 yuan (year-on-year + 21.1%), and the comprehensive gross profit margin was increased to 20.70% to achieve annual profit; The 12 inch production line (Shilan Jike) produced more than 36000 chips per month in December and more than 200000 chips in the whole year, with ASP of about 3844 yuan. At the same time, the company has started to implement the project of adding 24 Csg Holding Co.Ltd(000012) inch high-voltage integrated circuits and power devices per year. In the future, the company will continue to promote the amount of power chips and circuits that meet the requirements of vehicle regulations on the 12 inch line. In addition, the pilot test line of SiC Power Devices of the company has been connected in H1 of 2021. At present, the company has begun to build a 6-inch SiC power device chip production line in Shiming gallium, which is expected to be connected in Q3 of 2022; In terms of epitaxial wafers, Chengdu Shilan has formed an annual production capacity of 700000 silicon epitaxial wafers (covering the full size of 5, 6, 8 and 12 inches); In terms of module packaging, Chengdu Jijia has formed an annual packaging capacity of 100 million intelligent power modules (IPM), 800000 industrial and automotive power modules (PIM), 1 billion power devices, 200 million MEMS sensors and 40 million optoelectronic devices.
Adhering to the IDM mode, the company has a more prominent competitive advantage in the research and development of characteristic processes and products, which helps to improve product quality, strengthen cost control, provide customers with differentiated products and services, and improve its ability to penetrate into the supporting system of large manufacturers.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2024 will be 10.171 billion yuan, 13.036 billion yuan and 15.310 billion yuan respectively, and EPS will be 1.13, 1.44 and 1.75 yuan respectively. The corresponding PE of the current stock price will be 46, 36 and 30 times respectively, maintaining the “recommended” investment rating.
Risk tips
Downside risks of industry prosperity, lower than expected progress of capacity climbing, increased industry competition, changes in overseas policies, etc.
