Semiconductor decline narrowed, high performance, and the company’s share price was supported
During the week (2022 / 03 / 282022 / 04 / 01), the market rose as a whole. The CSI 300 index rose by 2.4%, the Shanghai Composite Index rose by 3.9%, the electronics and semiconductor sectors fell, CITIC electronics fell by 2.7%, and the semiconductor index fell by 3.4% – narrower than the decline of 4.7% last week. In terms of segments, when the market of simulation, power, equipment, MCU, storage and other tracks differentiated in the week, the share prices of companies that released beautiful performance were supported, while other companies followed the overall decline of the segment. In the material sector, photoresist and silicon wafer sectors continue to callback. At present, the semiconductor sector still continues the callback trend since the end of the 21st century. In the performance vacuum period before the release of the annual report and Q1 financial report, the supply chain disturbance caused by geographical conflict and the relevant actions of the United States against China’s semiconductors affect market sentiment. However, since the announcement of the company’s excellent performance in late March, the company has gradually turned to the annual report. In April, the market ushered in the final window period for the release of the performance of each company. Under the high prosperity of the industry, the growth of each company is safe, and the market situation is expected to be further catalyzed.
Industry news
1) the US wants to build “Chip4” to block the semiconductor industry in Chinese mainland. In March 29th, according to the Seoul economy, the US government proposed to form a Chip4 with South Korea, Japan and Taiwan. The intention behind it is to exclude the Chinese mainland from the global semiconductor supply chain by using this organization. In the view of the United States, if we can unite South Korea, which has the world’s first-class level in the chip field, TSMC, the world’s largest wafer foundry, and Japan, which has a strong sense of semiconductor materials, parts and equipment technology, we will build a “semiconductor wall” against China.
2) the global scale of MCU increased by 10%, reaching a new high. According to the McLean report of IC insights, the global market sales of MCU will increase by 10% in 2022, and the market scale is expected to reach US $21.5 billion, a record high. Among them, the sales of automobile MCU is expected to grow at a CAGR of 7.7%, which is higher than that of most other terminal markets.
3) the car core shortage continued, and Ford “sold the car first and then repaired the core”. According to China Central Television finance and economics, Ford announced that it would sell “semi-finished” vehicles lacking some non safety critical function chips, and promised to reissue the chips to dealers one year later to help install them on customers’ cars. In addition, due to the shortage of chips last week, the global production was reduced by about 96300 cars, of which more than 80% was from the European market and about 14200 cars were reduced in the North American market. Up to now, the global production has been reduced by about 1.25 million vehicles in 2022.
Important announcement
Yangzhou Yangjie Electronic Technology Co.Ltd(300373) issued the announcement of pre increase of 22q1 performance. It is expected to realize the net profit attributable to the parent company of 233280 million yuan, yoy + 50% – 80%, deducting the net profit not attributable to the parent company of 232278 million yuan, yoy + 52% – 82%. In terms of revenue, Q1 revenue increased by more than 45% year-on-year, which is estimated to be more than 1.37 billion yuan. Good performance mainly comes from: 1) high growth of MOS, IGBT and other new businesses; 2) The high growth of overseas business has led to the improvement of gross profit.
Advanced Micro-Fabrication Equipment Inc.China(688012) released the 21st Annual Report. It is estimated that the annual revenue will be 3.1 billion yuan, with a year-on-year increase of + 37%, the net profit attributable to the parent company will be 1.011 billion yuan, with a year-on-year increase of + 105%, and the net profit not attributable to the parent company will be 324 million yuan, with a year-on-year increase of + 1291%. The three indicators are basically in line with the previous performance express guidelines. It is estimated that the performance of the company in 21q4 has increased significantly compared with Q3. At the same time, the newly signed orders in 21 years are 4.13 billion yuan, and the contract liabilities at the end of the year are 1.37 billion yuan, showing the abundant growth momentum in 22 years.
Hangzhou Silan Microelectronics Co.Ltd(600460) released the 21st Annual Report. The revenue in the 21st year was 7.194 billion yuan, a year-on-year increase of + 68%, and the net profit attributable to the parent was 1.518 billion yuan, a year-on-year increase of + 2145%, deducting 895 million yuan of net profit not attributable to the parent, reversing the loss compared with 20 years. It is estimated that the company achieved a revenue of 1.972 billion yuan in 21q4, with a month on month ratio of + 3% and a year-on-year ratio of + 50%. In this quarter, the net profit attributable to the parent company was 790 million yuan, with a month on month ratio of + 166% and a year-on-year ratio of + 3288%. The net profit deducted from non attributable to the parent company was 208 million yuan, with a month on month ratio of – 27%. The loss was reversed year on year, showing a good business boom.
Shanghai Fudan Microelectronics Group Co.Ltd(688385) released the performance forecast of 22q1. During the reporting period, the prosperity of China’s semiconductor industry continued and the demand for downstream applications was strong. The company is expected to realize an operating revenue of about 750820 million yuan, an increase of 49% to 63% year-on-year, a net profit attributable to the parent of 195250 million yuan, an increase of 126% to 189% year-on-year, and a corresponding deduction of non attributable net profit of about 190245 million yuan, an increase of 167% to 244% year-on-year.
the annual report released by Nations Technologies Inc(300077) shows that the company achieved an operating revenue of 1.018 billion yuan in 21 years, with a year-on-year increase of 168%, and the net profit deducted from non parent company reached 46.36 million yuan with a year-on-year increase of + 131%. The high performance is mainly due to the large-scale production of general MCU products and the negative electrode material business, which benefited from the rapid development of lithium battery industry, and the sales scale has increased significantly.
Investment suggestion: continue to recommend leading enterprises in the semiconductor industry with large space / high vision.
1) power: the high demand driven by downstream new energy will continue. It is recommended to pay attention to Zhuzhou Crrc Times Electric Co.Ltd(688187) , Starpower Semiconductor Ltd(603290) , Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , Hangzhou Silan Microelectronics Co.Ltd(600460) , Wuxi Nce Power Co.Ltd(605111) , Macmic Science & Technology Co.Ltd(688711) , etc;
2) simulation: leading manufacturers have steadily expanded their item numbers and continue to benefit from localization. It is suggested to pay attention to Sg Micro Corp(300661) , 3Peak Incorporated(688536) , xidiwei, etc;
3) MCU: it is optimistic about the leading enterprises to achieve high performance growth through product structure adjustment + localization. It is recommended to pay attention to Gigadevice Semiconductor (Beijing) Inc(603986) , Sino Wealth Electronic Ltd(300327) , Nations Technologies Inc(300077) , etc;
4) materials: the downstream demand is hot, and the verification cycle of domestic manufacturers in downstream customers is accelerated. It is recommended to pay attention to Hangzhou Lion Electronics Co.Ltd(605358) , Konfoong Materials International Co.Ltd(300666) , National Silicon Industry Group Co.Ltd(688126) , Shenzhen Fastprint Circuit Tech Co.Ltd(002436) , etc;
5) equipment: the wafer factory enters the peak period of expenditure and drives the demand for upstream equipment. It is recommended to pay attention to Naura Technology Group Co.Ltd(002371) , Kingsemi Co.Ltd(688037) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Advanced Micro-Fabrication Equipment Inc.China(688012) , etc.
Risk tips: the demand is less than expected, the constraints of capacity bottlenecks, the technological progress of mainland manufacturers is less than expected, the Sino US trade friction is intensified, and the information used in the research report is not updated in time.
