In the window period of accelerating the breakthrough of the medium and high-end market, we should not focus on price rise, but deepen industrial penetration and industrial structure upgrading.
The financial reports of China’s semiconductor industry are coming out one after another. Under the tight supply chain and the continuous fluctuation of the external macro environment, the performance of relevant enterprises is obviously improving.
According to the financial reports that have been disclosed, the growth rate of net profit of more than 40% of the companies has doubled, but at the same time, the growth rate of some companies with high attention has declined.
According to statistics, 21st Century Business Herald reporter found that companies with two indicators ranking at the forefront in terms of net profit attributable to shareholders of the parent company and its growth rate mostly have two characteristics or one of them: IDM mode and independent production capacity; The business focuses on MCU (microcontroller) and related automotive electronics, which are still in short supply
However, it should be noted that the high demand for automotive electronics has led to a sharp rise in the performance of relevant companies. However, compared with the leaders of key devices such as overseas MCU, Chinese companies are still making continuous efforts in high-end.
Insiders told reporters that at present, the tension in the supply chain has been alleviated, and it is more in the stage of structural tension. This situation is expected to continue this year. For this reason, on the premise of limited production capacity of some overseas leading manufacturers, the whole semiconductor ecosystem, especially China, is actively cultivating a multi supplier system, which brings a development window period for domestic manufacturers to further break through the medium and high-end market
nearly half of the listed companies doubled their net profits
According to the statistics of the published financial report or performance express as of the morning of April 7, among the 86 listed semiconductor companies, the growth rate of the net profit attributable to the shareholders of the parent company of 38 companies is close to (more than 90%) or more than 100%, and the growth rate of 4 listed companies is more than 1000% of course, the net profit base of some companies is slightly low, which leads to the outstanding growth performance to a certain extent.
However, globally, high net profit growth is a universal trend. Taking the 2021 financial report of power semiconductor giant Italy France semiconductor as an example, the company realized a net profit of US $2 billion during the year, with an increase of 80.8%; The gross profit margin increased by 4.6 percentage points to 41.7%.
Specifically, enterprises with large net profit base and high growth rate include Hangzhou Silan Microelectronics Co.Ltd(600460) , Semiconductor Manufacturing International Corporation(688981) , China Resources Microelectronics Limited(688396) , Gigadevice Semiconductor (Beijing) Inc(603986) , Jcet Group Co.Ltd(600584) , Ingenic Semiconductor Co.Ltd(300223) , Maxscend Microelectronics Company Limited(300782) , etc.
Many of them are manufacturers with independent production lines or adopting IDM whole industry chain development model, which promotes relevant companies to have more advantageous delivery capacity in the tight supply chain environment, represented by the first three companies mentioned above; Of course, there are also manufacturers only in the single industrial link of chip design or chip sealing and testing, but design companies such as Gigadevice Semiconductor (Beijing) Inc(603986) , Ingenic Semiconductor Co.Ltd(300223) , have historical development advantages in the fields related to automotive electronic MCU or on-board storage, and sealing and testing factories such as Jcet Group Co.Ltd(600584) , Tongfu Microelectronics Co.Ltd(002156) , etc. also have demand for production capacity, so they also ensure the momentum of performance.
For example, Ingenic Semiconductor Co.Ltd(300223) performance express shows that during the reporting period, the demand of the company’s product lines was strong. With the continuous development of automobile intelligence and the strong demand of automobile terminal market, the company’s sales revenue in this field continued to grow; At the same time, the sales revenue of the company in the fields of industry, medical treatment, communication and consumption has also achieved good growth.
Of course, the general environment of the outbreak of overall demand determines that the basic market is in a good range. According to the data released by China Semiconductor Industry Association, the sales revenue of China’s integrated circuit industry exceeded trillion mark for the first time in 2 021, with a year-on-year increase of 18.2% among them, the sales volume of the design industry was 451.9 billion yuan, with a year-on-year increase of 19.6%; The sales volume of manufacturing industry was 317630 billion yuan, with a year-on-year increase of 24.1%; The sales volume of packaging and testing industry was 276.3 billion yuan, a year-on-year increase of 10.1%. Based on the breakthrough of China’s semiconductor industry in many fields, the association predicts that the industrial scale will increase to 1183.9 billion yuan in 2022.
Tongfu Microelectronics Co.Ltd(002156) in the financial report, it is also pointed out that in 2020, China’s semiconductor self-sufficiency rate will only be 15.9%, which is still far from the national goal of “reaching 70% chip self-sufficiency rate by 2025”. With the continuous acceleration of localization, it will also promote the further growth of sealing and testing demand. Under the changing situation of supply chain and overseas industrial chain, the opportunities for Chinese sealing and testing enterprises have been increased.
of course, there are also companies with weak performance. Generally speaking, most of them are in the iteration period of old and new products with the industry in which the company is located, which will affect the gross profit margin performance of old products; At the same time, these companies are still increasing R & D investment and other factors
The performance express of Raytron Technology Co.Ltd(688002) of infrared chip head company shows that the net profit attributable to shareholders of Listed Companies in 2021 decreased by 21.06% year-on-year, because the gross profit margin decreased due to factors such as changes in sales product structure. At the same time, it is also increasing investment in research and development of new businesses and developing markets. Specifically, it is related to the decline in the demand for temperature measurement products.
The Montage Technology Co.Ltd(688008) performance express of storage interface head company also shows that in 2021, the company realized a net profit attributable to the owner of the parent company of 829 million yuan, a year-on-year decrease of 24.88%, which is due to the fact that the company’s main profit source DDR4 memory interface chip has entered the later stage of the product life cycle, and the product price has decreased year-on-year; At the same time, ddr5 related products will not be officially mass produced and shipped until the fourth quarter of 2021, which will affect the overall gross profit margin performance.
These reasons echo the trend of the company’s performance forecast at the beginning of this year Montage Technology Co.Ltd(688008) it is estimated that from January to February this year, the company achieved a net profit of about 220 million yuan attributable to shareholders of listed companies, with a year-on-year increase of about 157%, which seems to show that the contribution of new products to performance is gradually released.
high end breakthrough window period
Of course, it is generally believed in the industry that although many companies have achieved considerable growth in performance under the background of the general shortage of resources in the industry last year, domestic chip companies still have a lot of room for development due to the penetration of in the field of high-end industrial control and automobile
At present, the MCU and power semiconductor market with large demand for automotive electronics is still dominated by overseas leading companies such as Italian French semiconductor, Infineon, NXP and Ti. The medium and high-end market of the Chinese market in relevant fields is still in the process of breaking through.
Nations Technologies Inc(300077) said frankly in the financial report, from the perspective of the development of general MCU industry, the world’s major suppliers are still dominated by international manufacturers, the industry concentration is high, the market share of Chinese manufacturers is not high, and the medium and high-end market is occupied by international manufacturers for a long time.
However, this does not affect the company’s net profit attributable to the owners of listed companies of 219 million yuan in 2021, with a year-on-year increase of 184909% Nations Technologies Inc(300077) predicted that the proportion of 32-bit MCU will continue to rise in the future. Therefore, in the field of general MCU, the R & D technology path of 32-bit MCU products will be expanded, refined, deep and wide, and a higher performance technology path will be implemented; Invest resources in strategic product lines such as high-end high-performance MCU, high reliability vehicle gauge MCU and high reliability BMS.
Gigadevice Semiconductor (Beijing) Inc(603986) in the investor exchange held recently, it was analyzed that the overall supply shortage of MCU market in 2021 and the impact of external environmental factors have brought opportunities to local MCU manufacturers, and customers’ acceptance of domestic MCU products is also increasing. 2 MCU out of stock still exists in 022. At present, the new capacity of large overseas factories is limited, and it will take a long time to expand production. Many Chinese manufacturers continue to import the company’s products
The senior management of the company pointed out that under the continuous supply shortage of large overseas factories, the company’s diversified supply chain strategy has played a positive role. Through good cooperation with supply chain manufacturers, the company has effectively avoided the supply risk brought by a single supplier and improved the production capacity. In 2021, the sales volume has doubled year-on-year Gigadevice Semiconductor (Beijing) Inc(603986) believes that industry, automobile and consumption are all very important markets and directions of the company in 2022, of which industry is a market with high entry threshold and relatively stable demand , which will bring continuous revenue to the MCU business of the company in the future; In the direction of automobile, the demand for oil vehicles to electric vehicles and the growth of new energy vehicles have brought good growth opportunities to vehicle MCU.
from the previous communication with MCU manufacturers, seeking a continuous breakthrough in the high-end market has always been the search direction of relevant companies. With the continuous change of the external environment, the industrial chain companies represented by domestic terminal manufacturers are gradually actively cooperating and importing business with upstream chip companies. Of course, it also takes some time to pass the vehicle regulation certification
China Merchants Securities Co.Ltd(600999) made special analysis on the development pace of Chinese power in MCU field. The agency pointed out that since 2022, overseas manufacturers Ruyi semiconductor, Infineon, NXP and other manufacturers have been brewing a new round of price increases for MCU products, and MCU channel prices have also shown an obvious upward trend since February 2022, but the price performance of Chinese MCU manufacturers is relatively weak
The reason, China Merchants Securities Co.Ltd(600999) analyst Yan fan’s team believes that Chinese MCU manufacturers account for a relatively high proportion of consumer grade, industrial control and vehicle regulations account for a relatively low proportion, and the current market of consumer demand is relatively weak; At the same time, the global market share of Chinese MCU manufacturers is still low, and they are still in the stage of rapidly seizing the share of overseas customers. Therefore, in terms of competitive strategy, they do not blindly protect the gross profit margin by transferring the wafer cost pressure, but more in order to maintain customer relations and expand new customers.
The agency pointed out that most of the products of Chinese MCU manufacturers are still concentrated in the medium and low-end fields, and there is still a large gap between the product structure layout and foreign manufacturers. ” for the new round of price increase of overseas MCU manufacturers, we believe that the impact on Chinese MCU manufacturers is not the follow-up price rise, but should pay attention to Chinese MCU manufacturers to take this opportunity to speed up the entry into medium and high-end customers and accelerate the upgrading of product structure and the penetration of domestic manufacturers. “
