\u3000\u3 Guocheng Mining Co.Ltd(000688) 187 Zhuzhou Crrc Times Electric Co.Ltd(688187) )
The decline in investment in new manufacturing of national railway has led to the decline of rail transit revenue, and the high growth of power semiconductors and new energy electric drives. In 2021, the company realized a revenue of 15.121 billion yuan, a year-on-year increase of – 5.69%; The net profit attributable to the parent company was 2.018 billion yuan, a year-on-year increase of – 18.49%. By business: (1) rail transit revenue was 12.252 billion yuan, a year-on-year increase of – 11.80%. (2) Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) revenue was 2.572 billion yuan, a year-on-year increase of + 35.31%. Among them, the revenue of power semiconductor devices was 1.068 billion yuan, a year-on-year increase of + 33.29%; The revenue of new energy electric drive system was 456 million yuan, a year-on-year increase of + 171.39%.
Changes in product structure led to a decline in gross profit margin. In 2021, the company’s gross profit margin was 33.74%, a year-on-year increase of -3.48pct; The net interest rate was 13.46%, with a year-on-year increase of -2.12pct. Among them, the gross profit margin of rail transit equipment was 36.99%, with a year-on-year increase of -2.52pct Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) gross profit margin was 20.05%, with a year-on-year increase of – 2.10%. In 2021, the company’s expense rate remained stable, and the sales expense rate, management expense rate, financial expense rate and R & D expense rate were 6.95%, 5.38%, – 0.49% and 11.18% respectively.
Rail transit and Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) technology R & D continued to make breakthroughs. In 2021, the company’s traction converter based on 3300v full SiC devices was put into passenger operation in Shenzhen line 1, and the traction energy consumption was reduced by 10%. 3. 125MW centralized inverter has passed the certification at one time, and 225Kw series inverter is connected to the network in a small batch. 3300v / 6500v intelligent integrated power module pcu2 0 prototype and card type rotary mold double-sided heat dissipation IGBT module samples have been successfully developed, and 750V fine groove IGBT for automobile is internationally leading.
IGBT chip phase II production line was officially put into operation, and it is expected that new energy vehicles will drive a substantial increase in revenue. In 2021, the company sold 1104400 power semiconductor devices, a year-on-year increase of + 110.62%. The company’s power semiconductor devices are mainly IGBT products. In the field of rail transit and power grid, the company’s IGBT modules have been delivered in batches, with the market share ranking first in China. With the formal production of IGBT chip phase II production line and the company’s deep accumulation in the field of vehicle specification IGBT, it is expected that the volume of new energy vehicle IGBT will increase significantly in 2022.
CRRC semiconductor’s employee stock ownership has been promoted smoothly, and long-term incentives have stimulated the vitality of talents. In order to better promote the development of power semiconductor and establish a long-term incentive mechanism for employees, on September 24, 2021, the company, times semiconductor and the employee stock ownership platform signed a capital and share increase agreement. After the capital increase, the employee stock ownership platform holds 6.22% of the equity of times semiconductor. According to the paid in capital, as of December 31, 2021, the employee stock ownership platform holds 6.20% equity of CRRC times semiconductor.
Profit forecast: we expect the net profit attributable to the parent company in 2022, 2023 and 2024 to be RMB 2.382/2.748/3.094 billion respectively, corresponding to the PE of the share price on March 29 to be 34 / 30 / 26 times respectively. It is covered for the first time and given a “buy” rating.
Risk tip: the investment in new railway construction continues to decline, and the IGBT production line and introduction are less than expected.
