\u3000\u3 China Vanke Co.Ltd(000002) 129 Tianjin Zhonghuan Semiconductor Co.Ltd(002129) )
Event overview the company and Tcl Technology Group Corporation(000100) signed the strategic cooperation framework agreement and cooperation agreement with the people’s Government of Inner Mongolia Autonomous Region and the people’s Government of Hohhot on April 7, 2022.
Analysis and judgment:
Sign strategic agreements to consolidate its leading position
In view of the company’s technical experience and management advantages in the field of semiconductor photovoltaic materials and semiconductor materials, as well as the good cooperation foundation between the company and the people’s Government of Inner Mongolia Autonomous Region and Hohhot since 2009, in order to deeply implement the national strategic deployment of “carbon peak and carbon neutralization” and the planning and deployment of Inner Mongolia Autonomous Region on accelerating the development of strategic emerging industries, The company has reached cooperation with all parties on the investment and construction of “Inner Mongolia central industrial city project group”, further build and form Inner Mongolia central industrial city on the basis of the company’s original industrial base, build the most important monocrystalline silicon material manufacturing industrial base in China with international competitiveness, extend, supplement and strengthen the chain, and build China’s “Silicon Valley”.
Among them, the main content of cooperation is the high-purity polysilicon project with a capacity of 120000 tons; Semiconductor monocrystalline silicon materials and supporting projects; National silicon material R & D center project; This cooperation is conducive to the coordinated cost reduction and shared development of the industrial chain strategy, strengthen the stability of the supply chain and consolidate the company’s industrial competitiveness.
Accelerate the demonstration of semiconductor materials business and continue to be optimistic about the company’s semiconductor business
According to semi data, the global semiconductor silicon wafer shipment area is expected to reach 14 billion square inches in 2021, with a year-on-year increase of 13.9%. In the next three years, the semiconductor silicon wafer shipment is expected to continue to reach a new high year by year. At present, the global semiconductor silicon wafer is mainly monopolized by foreign companies. In particular, the localization rate of 12 inch silicon wafer is low, and there is a huge space for domestic substitution. The company’s semiconductor materials business accelerated technology research and development and customer certification, rapid product upgrading and accelerated the layout of new products. While accelerating the capacity expansion of Jiangsu large silicon wafer project, the company plans to start the production expansion of Tianjin factory. At present, the second phase of the 8-12 inch large silicon wafer project is started ahead of schedule to accelerate capacity expansion. The quality and consistency of products have been continuously improved, the consumption of raw materials and auxiliary materials has been effectively improved, and the operation cost of the factory has been continuously reduced. At the same time, we have cooperated with upstream and downstream customers to establish a flexible cooperation mode, reduce transaction costs and improve the competitiveness of ourselves and customers.
Investment advice
Under the new system and mechanism, the company has improved its operation quality and efficiency, continuously improved its competitiveness, and achieved high performance in the future. We maintain the company’s profit forecast. It is estimated that the annual revenue from 2021 to 2023 will be 41.025 billion yuan, 55.245 billion yuan and 66.913 billion yuan respectively, the net profit attributable to the parent company will be 4.019 billion yuan, 5.216 billion yuan and 6.310 billion yuan respectively, and the EPS will be 1.24 yuan, 1.61 yuan and 1.95 yuan respectively, corresponding to the closing price of 40.38 yuan / share on April 7, 2022, and the PE will be 32x, 25X 21x, maintain the “buy” rating.
Risk tips
The demand of semiconductor market is not as expected, the competition in semiconductor silicon wafer industry is intensified, systemic risks, etc.
