\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
On April 8, the company released its annual report for 2021. In 2021, the company achieved a revenue of 1.707 billion yuan, a year-on-year increase of 77.22%, and a net profit attributable to the parent company of 398 million yuan, a year-on-year increase of 120.48%.
Q4’s revenue and profit reached a new high and its profitability was further improved: from Q4 alone, the company achieved a revenue of 510 million yuan, a year-on-year increase of 72.94% and a month on month increase of 6.69%; The net profit attributable to the parent company was 132 million yuan, a year-on-year increase of 183.22% and a month on month increase of 17.15%. Both revenue and profit reached record highs. It is worth noting that the company’s Q4 gross profit margin reached 40.81%, an increase of 5pct month on month. Thanks to the continuous high boom of new energy vehicles and photovoltaic, the proportion of the company’s revenue in the field of new energy continued to increase, and the price of the company’s products increased under the shortage of production capacity.
New energy, industrial control and home appliances are fully covered, fully benefiting from the high prosperity of the industry: Overseas leaders Infineon and Italy France semiconductor have successively issued price increase letters. According to the report of Fuchang electronics, the delivery time of 1q22 overseas power manufacturers generally increased by more than 10-20 weeks month on month, and the maximum delivery time reached 52 weeks. In China, due to the price rise of raw materials of upstream chips and other factors, Shenzhen Inovance Technology Co.Ltd(300124) , Hechuan technology and other industrial control enterprises have successively issued price rise announcements. Since April 15, the price rise of some products has been 3% – 15%, which shows the high prospect of power devices, especially IGBT market. The company covers all fields such as industrial control, new energy vehicles, photovoltaic and household appliances, and will fully benefit from the high-profile atmosphere of the industry.
The wave of electrification continues, the supply of photovoltaic inverters is tight, and the company ushers in a high-speed growth dividend period: the penetration rate of electric vehicles and the installed capacity of photovoltaic continue to increase, and the shortage of IGBT is difficult to alleviate in the short term. At present, the company has made gratifying progress in the vehicle regulation IGBT and photovoltaic IGBT single tube and module market. In the field of new energy, the company has supported more than Shanghai Pudong Development Bank Co.Ltd(600000) new energy vehicles in 21 years, including more than 150000 class A and above models. It is expected that the number of supporting vehicles and the proportion of class a vehicles will be further improved in 22 years. In addition, the company’s vehicle specification level IGBT module applied to the main motor controller has started supporting the overseas market in large quantities, and its share is expected to further increase in 22 years. In addition, the company has made great efforts in the SiC market and has added several main motor controller projects of 800V system using SiC module. In the field of photovoltaic power generation, the company’s 650V / 1200vigbt single tube and module are installed in large quantities in sunshine, Jiangsu Goodwe Power Supply Technology Co.Ltd(688390) and other mainstream inverter customers in China. It is expected that the market share will increase rapidly in 2022.
Investment suggestion: we expect the net profit attributable to the parent company in 2022 / 23 / 24 to be RMB 663 / 972 / 1412 million respectively, and the corresponding current price (closing price of 2022.4.8) PE to be 90 / 61 / 42 times respectively. The company has made leading progress in the field of IGBT in China, and has sufficient development space in the fields of new energy vehicles and photovoltaic in the future. We are optimistic about the long-term development of the company. Maintain a “recommended” rating.
Risk warning: product R & D risk / industry prosperity decline risk / market competition risk
