\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
The company announced that after hours on April 8, the company released its annual report for 2021, with an annual operating revenue of 1.707 billion yuan, an increase of 77.22% year-on-year; The net profit attributable to the parent company was 398 million yuan, an increase of 120.49% year-on-year; The net profit deducted from non parent company was 378 million yuan, an increase of 143.27% year-on-year.
Comments
Benefiting from the high prosperity of the downstream, the performance has increased significantly. The company’s annual revenue and net profit attributable to the parent company increased by 77.22% and 120.49% respectively year-on-year; Q1-Q4 quarterly revenue increased by 135.70%, 41.41%, 89.85% and 72.94% respectively year-on-year; The gross profit margin and net profit margin were 36.73% and 23.40% respectively, with a year-on-year increase of 5.17pct and 4.6pct. The company’s good performance benefits from its core technology advantages and its grasp of market opportunities. Its products continue to grow rapidly in new energy vehicles, photovoltaic power generation, industrial control, energy storage and other industries, with continuous revenue growth and significant profitability. (1) In the composition of revenue industries, the revenue contribution of industrial control and power supply industry was 1.065 billion yuan, accounting for 62.37%, with a year-on-year increase of 50.60%; The revenue contribution of the new energy industry was 571 million yuan, accounting for 33.48%, with a year-on-year increase of 165.95%; Inverter white goods and other revenue contributed 60 million yuan, accounting for 3.52%, a year-on-year increase of 59.48%. (2) In the composition of revenue products, IGBT module is still the main form, accounting for 94.05% of revenue; In 2021, 9.3 million were produced and 8.78 million were sold, with a year-on-year increase of 70.67% and 67.85% respectively.
The volume of vehicle regulation products is accelerated, and the medium and long-term growth power is full. (1) From a short-term perspective, the company’s vehicle specification level IGBT modules continue to be in large quantities. In 2021, more than Shanghai Pudong Development Bank Co.Ltd(600000) new energy vehicles will be equipped, including more than 150000 class A and above models. Large quantities of supporting will also be opened in the overseas market. It is expected that the market share will be further improved in 2022. In addition, the company’s sixth generation IGBT chips are mass produced on the 12 inch production line, and the seventh generation micro channel tank car gauge IGBT chips have been successfully developed and will be supplied in batches in 2022. (2) From a long-term perspective, the company has added a number of fixed points for 800V system pure electric vehicle type main motor controller projects for 1200V vehicle specification level IGBT module, and continued to layout SiC field, adding a number of 800V vehicle specification sicmosfet module projects. With the large-scale layout of 800V fast charging technology by China’s new power auto enterprises, 2022 or the first year of the development of China’s vehicle regulation 800V voltage platform, the company will have sustainable growth in the field of new energy vehicles in the next 5-6 years.
The layout of photovoltaic field is rapid and is expected to achieve a great leap. IGBT products of the company are installed and applied in large quantities in mainstream photovoltaic inverter customers in China, including Sungrow Power Supply Co.Ltd(300274) , Ginlong Technologies Co.Ltd(300763) , Jiangsu Goodwe Power Supply Technology Co.Ltd(688390) and so on. With the breakthrough of the company’s production capacity in Jita semiconductor, it is expected that the share of photovoltaic field will increase rapidly in 2022.
Investment advice
We believe that from a long-term perspective Starpower Semiconductor Ltd(603290) in the next five years, the industry will benefit from the growth of space (on the order of two) the increase of market share (on the order of five) the increase of the proportion of self-made chips / the increase of scale effect, which corresponds to more than 10 times of the growth potential of revenue and profit. After SiC devices replicate the high-quality path of IGBT module before chip from 2025 to 2030, the growth logic may continue from 5 years to more than 10 years. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 582 million yuan, 858 million yuan and 1.230 billion yuan respectively, corresponding to 102 times, 69 times and 48 times of the current PE respectively; Maintain buy rating.
Risk tips
The development of new energy vehicles is less than expected; The price rise of the upstream agent factory affects the cost; SiC R & D projects were not as expected.
