\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 56 Shenzhen Minde Electronics Technology Ltd(300656) )
Build a smartidm ecosystem and open the growth ceiling of power semiconductors. The company’s original main business was the R & D, production and marketing of bar code reading equipment. Considering the limited growth space of bar code reading industry, the company actively sought a new growth direction after listing. The company has focused on the power semiconductor industry in the past few years. After many rounds of accurate acquisition and equity participation, At present, we have completed the “silicon wafer wafer manufacturing design distribution” power semiconductor “smartidm “Ecosphere layout is a rare power semiconductor enterprise in China with integrated and comprehensive layout in design, wafer manufacturing and silicon wafer preparation. The subsidiaries in each link not only maintain independent operation and accept market competition, but also hope to form better strategic coordination and help each other. Guangwei integration and Jingrui electronics are entering a stage of rapid growth. Guangxin microelectronics are stepping up the construction stage, and Taibo xunrui is also stepping up the construction stage In a steady state of operation, power semiconductor related businesses have clearly become the main body of the company’s revenue and the core driving force of performance growth.
Benefiting from the pull of new energy demand, there is huge room for domestic substitution of power semiconductors. Driven by new energy vehicles, photovoltaic, wind power and energy storage, the global power semiconductor market is expected to accelerate its growth. According to omdia’s prediction, the global power semiconductor market will be US $45.5 billion in 2019 and is expected to grow to US $55.3 billion in 2024, with a compound annual growth of 3.98%. Among them, the power device market is also expected to achieve synchronous high-quality growth. According to yole’s prediction, from 2020 to 2026, The global power device market is expected to grow from US $17.5 billion to US $26.2 billion at a compound annual growth rate of 6.9%.
China is one of the largest power semiconductor demand countries in the world, accounting for more than 40% of the global market. However, due to the late start of China’s power semiconductor industry, the current overall self-sufficiency rate is still very low. In the past two years, China US trade friction and lack of core are accelerating the process of national product substitution, and domestic power semiconductor enterprises are ushering in a fast-growing industrial east wind, Shenzhen Minde Electronics Technology Ltd(300656) “smartidm” ecosystem layout conforms to the development direction of power semiconductor business model in the future, and the future development potential is considerable.
Bar code reading welcomes the east wind of the Internet of things and becomes a local leader relying on core technology. Bar code scanning technology has become one of the most common and cost-effective information management means in modern society. The continuous development of concepts such as Internet of things and industrial Internet and related industries is constantly expanding the application scenario of bar code reading technology. This round of covid-19 epidemic provides a rare time window for domestic enterprises to import into overseas markets and continuously verify products.
The company is the first enterprise in China with independent research and development of bar code reading technology. All core technologies are obtained through independent research and development. Moreover, the company also has the scarce semiconductor research and development ability in the industry, which is convenient to make full use of the dividend of semiconductor localization, greatly reduce the product cost, greatly improve the product cost performance and market competitiveness, and play an important role in the domestic substitution of bar code recognition equipment industry. The stable profitability and timely payment collection characteristics of bar code reading business provide a steady stream of funds for the company’s production expansion, investment and acquisition.
Profit forecast and investment rating: for the first time, a buy rating is given. The stable growth and cash flow contribution of the traditional bar code reading terminal business are the foundation of the healthy development of the company in the past few years. Through the acquisition and layout in recent years, the company has successfully opened up the second track of power semiconductor, and has gradually completed the layout of the “smartidm” ecosystem in the semiconductor field. At present, the wide and micro integration in the design link has entered the fast lane of growth, and Jingrui electronics in the silicon chip link also has strong performance growth, The wafer wide core microelectronics project is under intense and orderly construction, and is expected to form a better synergy with Guangwei integration and Jingrui electronics in 2023. It is expected to realize a net profit of 114 million yuan, 262 million yuan and 418 million yuan from 2022 to 2024, and the current market value corresponds to pe47.7 billion yuan 87, 20.83 and 13.06 times. Considering the future profit composition of the company, the proportion of semiconductor business is expected to continue to increase, the high-tech attribute is continuously enhanced, and the company is given a buy rating for the first time.
Risk tips: (1) the order volume of overseas customers of bar code reading equipment is lower than expected; (2) The construction progress of Guangxin microelectronics project is less than expected, and the display of synergy lags behind.
