\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 460 Hangzhou Silan Microelectronics Co.Ltd(600460) )
Event:
The company released its annual report for 2021: in 2021, the company achieved a revenue of 7.194 billion yuan (a year-on-year increase of 68.07%), and a net profit attributable to the parent company of 1.518 billion yuan (a year-on-year increase of 214525%); Among them, in the single quarter of 2021q4, the company realized a revenue of 1.972 billion yuan (a year-on-year increase of 49.80% and a month on month increase of 3.06%), and a net profit attributable to the parent company of 790 million yuan (a year-on-year increase of 328770% and a month on month increase of 166.26%).
Key investment points:
In 2021, the performance continued to increase, and the product structure was continuously optimized. The company’s performance continued to rise, mainly due to: 1) in 2021, the company’s production capacity continued to grow, and made breakthroughs in new energy vehicles, photovoltaic and other markets. The operating revenue and profit of main products increased significantly, and the comprehensive gross profit margin of products improved significantly; 2) In 2021, Shilan Jixin and Shilan Mingxin continued to have full production and sales, driving performance growth; 3) In 2021, the Shanghai Anlogic Infotech Co.Ltd(688107) listing invested by the company and the introduction of external investors by videocore technology increased the value of the company’s financial assets and the company’s net profit. In terms of integrated circuits, in 2021, the operating revenue reached 2.293 billion yuan (a year-on-year increase of 61.50%), and the gross profit margin was 41.76% (a year-on-year increase of 16.04 PCT); In terms of discrete device products, the operating revenue reached 3.813 billion yuan (a year-on-year increase of 73.08%), and the gross profit margin was 32.89% (a year-on-year increase of 8.89 PCT); In terms of LED, the operating revenue reached 708 million yuan (a year-on-year increase of 81.05%), and the gross profit margin was 18.04% (a year-on-year increase of 30.70pct). The company’s ability to control expenses has been steadily improved. In 2021, the company’s expense rate (excluding R & D) was 8.41% (a year-on-year decrease of 3.95pct), of which the rates of sales, management (excluding R & D) and financial expenses were 1.69% (a year-on-year decrease of 0.94ct), 4.20% (a year-on-year decrease of 1.60pct) and 2.52% (a year-on-year decrease of 1.40pct).
The company’s production capacity continued to climb, and the company benefited significantly. 5. In terms of 6 inches, in 2021, Shilan integrated was fully produced and sold, with a total output of 2554400 chips of 5 and 6 inches (a year-on-year increase of 7.54%); In terms of 5 / 6 / 8 inches, Shilan Jixin has produced a total of 6573008-inch chips (an increase of 14.90% year-on-year). Chengdu Shilan has maintained the stable operation of 5, 6 and 8-inch production lines and increased investment in 12 inch chip production lines. So far, Chengdu Shilan has formed an annual production capacity of 700000 silicon epitaxial chips (covering the full size of 5 / 6 / 8 / 12 inches). In terms of 12 inches, Shilan Jike has basically completed the production capacity construction goal of phase I of the 12 inch line, and has achieved mass production of multiple products on the 12 inch line, with more than 36000 pieces in 2021m12. It has begun to implement the phase II construction project, and the process and product platform of the 12 inch line will be further improved.
Multi-point R & D blossoms, and the company has sufficient growth momentum. The company continued to increase R & D investment, with R & D expenses of 587 million yuan in 2021 (a year-on-year increase of 36.80%). In terms of product R & D achievements, power: in addition to accelerating market expansion in white power, industrial control and other markets, it has begun to accelerate its entry into new energy vehicles, photovoltaic and other markets. IGBT modules have been successfully introduced into some auto enterprises. At present, Chengdu Jijia company has formed an annual packaging capacity of 800000 industrial and automotive power modules (PIMS). The fifth generation IGBT vehicle gauge module independently developed by the company has passed the certification of many customers in China and is beginning to be supplied in batch. Photovoltaic IGBT customer verification was carried out in an orderly manner. SiC: the pilot line of SiC power device has been connected in 2021h1. At present, the company has completed the research and development of vehicle specification level SiC MOSFET devices, and will send them to customers for evaluation and start mass production. At the same time, we will start to build a 6-inch SiC power device chip production line in Shiming gallium company, and the line is expected to be connected in 2022q3. Power management chip: the fast charging chipset for smart phones and the series of multi protocol fast charging solutions for travel charging, mobile power supply and car charging developed by the company have been applied in Chinese mobile phone brand manufacturers, and the shipment has increased significantly. MEMS sensors: Shilan Jixin and Shilan Jijia have achieved mass production of MEMS sensors. In addition to continuing to increase the supply of smart phones, wearable devices and other consumer fields, it will also accelerate the expansion to white electricity, industry, automobile and other fields.
Profit forecast and investment rating: as a leading local power IDM enterprise, the company actively expands production capacity and optimizes product structure. With the booming demand of downstream new energy vehicles, photovoltaic and energy storage combined with the dual vitality of domestic substitution, the company is expected to continue to grow rapidly. We raised the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.558 (+ 1.85) / 19.22 (+ 2.96) / 2.348 billion respectively, corresponding to the current PE valuation of 47 / 38 / 31 times respectively, maintaining the “buy” rating.
Risk warning: the downstream demand is less than the expected risk; Production line construction and product R & D are less than expected risks; The import risk is less than the customer’s expectation; Technical iteration is less than expected risk; Industry competition intensifies risks.
