\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 460 Hangzhou Silan Microelectronics Co.Ltd(600460) )
The company released its annual report for 2021: in 2021, the company realized an operating revenue of 7.194 billion yuan, a year-on-year increase of + 68.07%; The net profit attributable to the parent company was 1.517 billion yuan, a year-on-year increase of + 214525%, deducting 895 million yuan of net profit not attributable to the parent company, which significantly turned losses into profits. The company achieved an operating revenue of 1.972 billion yuan in the single quarter of 2021q4, a year-on-year increase of + 49.80% and a month on month increase of + 3.06%. The net profit attributable to the parent company in Q4 was 790 million yuan, mainly due to Shanghai Anlogic Infotech Co.Ltd(688107) listing in November, resulting in an increase of 533 million yuan in net profit and 208 million yuan in net profit attributable to the parent company after deduction.
Product structure optimization helps the company improve its profitability. In 2021, the company’s comprehensive gross profit margin was 33.19%, with a year-on-year increase of 10.69pct. In terms of business, the company’s discrete device products achieved a revenue of 3.813 billion, accounting for about 53.01% of the total revenue, and the gross profit margin of business is 32.89%, which is comparable to that of power fabless manufacturers. The revenue of integrated circuit business was 2.293 billion, accounting for 31.88%, and the gross profit margin was 41.76%. The gross profit margin of the two businesses increased significantly compared with last year, mainly due to the company’s continuous breakthroughs in high threshold markets such as white power, communication, industry, photovoltaic and new energy vehicles. The 8-inch line also began to produce high value-added high-voltage super junction MOS, high-power IGBT modules and other products. From the perspective of production line ASP, in 2021, the company’s 5-6-inch line produced 2.554 million pieces, corresponding to Shilan’s integration revenue of 1.466 billion yuan and ASP of 650 yuan, a year-on-year increase of + 5.3%; Shilan Jixin 8-inch line produced 657000 pieces, with a corresponding ASP of 1757 yuan, a year-on-year increase of + 21.1%. The 12 inch line corresponds to ASP 3844. We believe that in 2022, the upgrading of the company’s product structure will continue, the scale effect of the production line will be prominent, the ASP of the production line will continue to improve, and make full use of the existing production capacity to obtain higher returns.
The capacity expansion was smooth in 21 years, and the capacity continued to climb in 22 years. The company’s current capacity release is mainly used in the field of IGBT and other power semiconductors. At the end of 2021, Shilan Jike completed the construction of phase I of the 12 inch line, realizing a monthly capacity of 36000 pieces in December and an annual capacity of more than 200000 pieces in 21. Shilan Jike obtained the capital increase from the national large fund to promote the construction of phase II. It is expected that another 20000 pieces of monthly production capacity will be added by the end of 22 years. In addition, in 2021, the company completed the construction of packaging capacity, with the packaging capacity of power devices, IPM modules, industrial and automotive power modules, helping the company obtain higher added value. We expect that with the climbing of 8-inch line, the expansion of 12 inch line and the investment of packaging production line, the company will give full play to the advantages of IDM mode and have long-term competitiveness in product strength, supply chain guarantee, cost reduction and efficiency increase.
The company’s IGBT continues to develop rapidly by taking advantage of the east wind of new energy. In 2021, the main motor drive module of electric vehicle with v-generation IGBT and FRD chip independently developed by the company has passed the test in many customers in China and is supplied in batches to some customers. In 2022, the company will accelerate its entry into new energy vehicles, photovoltaic and other markets. In terms of third-generation semiconductors, the pilot line of SiC Power Devices of the company has been connected in 2021h1. The research and development of vehicle specification SiC MOSFET devices of the company has been completed, and mass production will be carried out after verification by customers. In addition, the company plans to build a 6-inch SiC power device production line in Shiming gallium, and the 2022q3 line is expected to be connected.
Investment suggestion: we believe that the power semiconductor industry in which the company is located is a high prosperity track. Hangzhou Silan Microelectronics Co.Ltd(600460) as a large IDM factory, it has technology and capacity reserves, and its scale advantage is gradually highlighted. It will fully benefit from the explosion of downstream demand in the future. It is estimated that the operating revenue of the company from 2022 to 2024 will be 9.892 billion yuan, 12.908 billion yuan and 15.756 billion yuan respectively, with a year-on-year increase of 37.50%, 30.48% and 22.07%, and the net profit attributable to the parent company will be 1.309 billion yuan, 1.651 billion yuan and 1.977 billion yuan respectively, with a year-on-year increase of – 13.73%, 26.14% and 19.72%. At present, it corresponds to pe5.55 billion yuan (March 29, 2022) 38, 43.90 and 36.67, with “buy” rating for the first time.
