\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 73 Yangzhou Yangjie Electronic Technology Co.Ltd(300373) )
[matters]
Yangzhou Yangjie Electronic Technology Co.Ltd(300373) released the performance forecast for the first quarter of 2022. The company expects the net profit attributable to the parent company in 2022q1 to be RMB 233280 million, with a year-on-year increase of 50% – 80%, and the net profit deducted from non net profit to be RMB 232278 million, with a year-on-year increase of 51.7% – 82.3%. The company’s net profit attributable to the parent company increased significantly year-on-year, and also achieved positive growth month on month (2021q4), mainly due to 1) the high prospect of the power semiconductor industry and the continuation of downstream demand. The company firmly grasped the domestic substitution opportunity, rapidly released production capacity, promoted the development of new products and opened the downstream application field; 2) The company strengthened brand building, promoted the parallel promotion of “Yangjie” and “MCC” brands, promoted cooperation with large multinational groups, doubled the sales revenue of MCC brand year-on-year, and improved the overall gross profit margin; 3) The sales revenue of SiC and most products increased by more than 100% year-on-year.
[comments]
Deeply cultivate the power semiconductor industry Yangzhou Yangjie Electronic Technology Co.Ltd(300373) focuses on power semiconductor chip and device manufacturing, integrated circuit packaging and testing and other businesses. At present, the main products are all kinds of power electronic device chips, MOSFETs, IGBT and silicon carbide JBS, high-power modules, small signal diodes and triodes, power diodes, rectifier bridges, etc. the downstream application fields include consumer electronics, security, industrial control, automobile and new energy power generation. At present, the company has formed nine core R & D teams, including SiC R & D team, IGBT R & D team, MOSFET R & D team, wafer design R & D team, WB packaging R & D team, clip packaging R & D team, new process R & D team, technical service center and gallium nitride R & D team, which provide a strong guarantee for new product development and technical bottleneck breakthrough.
Vertical extension, stable supply of raw materials. In September 2021, the company signed the project investment agreement with the Management Committee of Sichuan Ya’an Economic Development Zone on the investment and construction of semiconductor single crystal material expansion project, with a total investment of no less than 700 million yuan, which will be completed in three phases and five years. This foreign investment will help the company to further expand the construction of semiconductor single crystal material production line, improve the production capacity of single crystal silicon rod, single crystal silicon epitaxial wafer and single crystal silicon polishing wafer, become one of the few large-scale enterprises integrating single crystal silicon wafer manufacturing, chip design and manufacturing, device design, packaging and testing, terminal sales and service vertical industrial chain in China, and ensure the supply of raw materials.
Profit forecast. The company has formed core advantages such as technical advantages, industrial chain advantages, customer advantages, quality management advantages, marketing management advantages and large-scale supply. Driven by the policies of new infrastructure, carbon peak and carbon neutralization, 5g communication, new energy vehicles and photovoltaic energy storage have opened a high-speed growth mode to promote the rapid development of power semiconductor industry. We judge that the company will seize this opportunity and expand its business rapidly. We expect that the company’s revenue from 2021 to 2023 will be 4.4/56.5/7 billion yuan, the net profit attributable to the parent company will be 7.6/9.8/1.13 billion yuan, the EPS will be 1.61/2.07/2.39 yuan / share, and the PE corresponding to the current stock price will be 46.11/35.75/30.92 times, giving the company a “overweight” rating.
[risk tips]
IGBT and SiC technology breakthroughs were less than expected, capacity expansion was less than expected, and industry competition intensified.
