\u3000\u3 Bohai Water Industry Co.Ltd(000605) 358 Hangzhou Lion Electronics Co.Ltd(605358) )
Event: the company issued the announcement of 2022q1 performance pre increase. It is estimated that the net profit attributable to the shareholders of the listed company in the first quarter of 2022 will be 215 million yuan to 245 million yuan, with a year-on-year increase of 183.66% to 223.24%. It is expected to deduct non net profit of RMB 212 million to RMB 242 million, with a year-on-year increase of 220.50% to 265.85%.
Comments: silicon chip + discrete device + RF chip, three wheel drive is expected in the future. The reason for the company's outstanding performance growth in 2022q1: during the reporting period, the downstream demand driven by national policies, the acceleration of domestic substitution of semiconductors and the rapid development of intelligent economy continued to increase, the market prosperity of the company's industry segments continued to be high, the market demand was strong, the company's sales orders were full, and the production and sales of main products increased significantly. The company seized the market opportunity, did a solid job in production and operation, and optimized the product structure, Improve the company's core technology R & D capability, the company's factories continue to increase cost control, the company's business situation continues to improve, and the profitability is steadily improved.
It is optimistic that the company will continue to benefit from the "semiconductor silicon wafer + discrete device" industry and domestic substitution opportunities. The prosperity of the industry has improved, and the company's market share of 8-inch silicon wafer has increased steadily thanks to various factors such as the acceleration of domestic substitution of semiconductors and the continuous increase of downstream demand driven by the rapid development of intelligent economy. With the rapid development of new energy vehicles, AI, Internet of things and other application fields, the semiconductor silicon wafer and discrete device industry has broad prospects for development in the future. According to semi's prediction, global silicon wafer shipments will reach 12.5 billion square feet in 2021, with a year-on-year increase of 5%, and will reach 13.2 billion square feet in 2022, with a year-on-year increase of 5.3%. Benefiting from the support of national industrial policies, the proportion of sales revenue of China's semiconductor discrete device industry in the world has increased year by year, and the market scale has increased steadily. Power semiconductors are growing rapidly in various application fields: on the one hand, the new energy vehicles are growing rapidly, on the other hand, the clean energy business is growing rapidly. On the other hand, the business brings the demand for semiconductor power devices. In addition, there are more and more new electronic and intelligent application scenarios. On the whole, we believe that the market prosperity of the power semiconductor industry continues to maintain. The company laid out earlier and completed the construction of new 6-inch and 8-inch silicon wafer production lines, and implemented the capacity and technical transformation of power device chip manufacturing production lines, which is expected to benefit from the market space brought by semiconductor business cycle + import substitution.
It plans to acquire Guojing semiconductor, strategically expand the production capacity of 12 inch silicon wafer and enhance its core competitiveness. Jinruihong, the holding subsidiary of the company, plans to acquire Guojing semiconductor. After the acquisition, jinruihong Microelectronics will directly hold 58.69% of the equity of Guojing semiconductor. The company will hold 77.97% of the equity of Guojing semiconductor through direct and indirect ways and obtain the control of Guojing semiconductor. The main products of Guojing semiconductor are 12 inch silicon wafers for integrated circuits. At present, all infrastructure construction with a monthly production capacity of 400000 silicon wafers has been completed. The fully automated production line for the production of 12 inch silicon wafers for integrated circuits has been put through. At present, it is in the stage of equipment installation and commissioning, customer introduction and product verification. At present, Guojing semiconductor is in the stage of customer introduction and product verification, and has not yet achieved operating revenue. As of December 31, 2021, it is in a state of loss. It is expected that Guojing semiconductor will achieve good performance after the completion of customer introduction and product verification. The acquisition is conducive to rapidly expand the company's existing production scale of 12 inch silicon wafers for integrated circuits, and realize complementary advantages and resource sharing. Improving the company's market position in 12 inch silicon wafers for integrated circuits, especially light doped silicon wafers for storage and logic circuits, is in line with the company's development strategy and long-term plan and the interests of all shareholders of the company.
A fixed increase of 5.2 billion yuan will be implemented, and the investment in silicon wafer + power semiconductor + silicon epitaxial wafer projects will continue to be increased. The company raised a total of 5.2 billion yuan to invest in the technical transformation project with an annual output of 1.8 million 12 inch silicon chips for integrated circuits, 7200006-inch power semiconductor chips, 2.4 million 6-inch silicon epitaxial chips and supplement working capital. The company will enrich product categories, expand product production capacity, improve industrial layout and enhance comprehensive competitiveness. Specifically, it will increase its share in the mainstream market of semiconductor silicon wafers, significantly increase the production capacity of grooved Schottky power diode chips, and consolidate the market leader position of silicon wafers of 8 inches and below.
Investment suggestion: Based on the company's long-term growth momentum under the high demand of semiconductor silicon wafer and discrete device industry and domestic substitution logic, we expect the net profit of 22 / 23 / 24 to be RMB 950 / 13.731831 million respectively, maintaining the "buy" rating.
Risk warning: the operation data of Q1 in 2022 is the preliminary accounting data. The specific data are subject to the quarterly report, the concentration of sales areas, the rise of labor costs, the aggravation of the epidemic and the loss of R & D technicians
