\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
Events
Starpower Semiconductor Ltd(603290) released the annual performance report for 2021: the company achieved an operating revenue of 1.707 billion yuan in 2021, with a year-on-year increase of 77.22%, a net profit attributable to the parent company of 398 million yuan, with a year-on-year increase of 120.49%, and a net profit attributable to the parent company of 378 million yuan after deduction, with a year-on-year increase of 143.27%.
Key investment points
In the fourth quarter, the performance reached a record high, and the proportion of new energy increased rapidly
In Q4 of 2021, the company achieved a revenue of 510 million yuan (year-on-year + 72.88%, month on month + 6.7%), a net profit attributable to the parent company of 132 million yuan (year-on-year + 181%, month on month + 16.8%), and a net profit attributable to the parent company of 127 million yuan (year-on-year + 218%, month on month + 15%) after deducting non profits, all of which reached a record high. In terms of subdivided application fields, the revenue of industrial control and power supply industry / new energy industry / variable frequency white appliances and other industries was RMB 1.065571/60 billion respectively, with a year-on-year increase of 50.60% / 165.95% / 59.48% respectively, and the proportion of new energy increased by 11pct to 33%; In terms of subdivided products, the revenue of IGBT module reached 1.595 billion yuan (year-on-year + 74.99%), accounting for 94.05%; In terms of gross profit margin, the overall gross profit margin of the company in 2021 was 36.73% (year-on-year + 5.17pct), of which the gross profit margin of IGBT module reached 37.14% (year-on-year + 5.15pct); In terms of period expenses, the expense rate (excluding R & D) in 2021 was 4.30% (year-on-year + 0.26pct), including sales expense rate of 1.73% (year-on-year -0.12pct), management expense rate of 3.02% (year-on-year + 0.39pct) and financial expense rate of – 0.15% (year-on-year -0.01pct). In addition, in 2021, the company’s R & D expenses were 110 million yuan (year-on-year + 42.95%), and the R & D expense rate reached 6.46%.
China’s leading IGBT enterprise, with rapid expansion of automotive and photovoltaic applications
According to the latest report of omdia, the global market share of IGBT module of the company in 2020 ranks sixth in the world and first among Chinese enterprises. It is a leading enterprise in China’s IGBT industry.
In 2021, the company expanded rapidly in the fields of new energy vehicles and photovoltaic power generation: 1) the vehicle specification level IGBT module applied to the main motor controller continued to increase in volume, supporting more than Shanghai Pudong Development Bank Co.Ltd(600000) new energy vehicles in total, including more than 150000 class A and above models. At the same time, the share of semiconductor devices in new energy vehicles such as vehicle air conditioning, charging pile and electronic power steering was further increased; 2) The vehicle specification level IGBT module applied to the main motor controller has begun to be matched with the overseas market in large quantities. It is expected that the overseas market share will be further improved in 2022; 3) A new generation of vehicle specification 650V / 750V / 1200vigbt chip based on the seventh generation micro trench trenchfieldstop technology has been successfully developed, and it is expected to start mass supply in 2022; 4) 1200V and 1700vigbt chips based on the sixth generation trenchfieldstop technology have achieved mass production on the 12 inch production line, and the output of the company’s 12 inch IGBT chips has increased rapidly; 5) Sgtmosfet of vehicle specification level starts small batch supply; 6) The modules and discrete devices using independent 650V / 1200vigbt chips and supporting fast recovery diode chips are installed and applied in a large number of mainstream photovoltaic inverter customers in China. It is expected that the market share will increase rapidly in 2022; 7) IPM module continues to expand in China’s white appliances, industrial frequency converters, servo controllers and other industries, and its market share continues to increase.
Orders were placed vigorously in the high boom of the industry, with a fixed increase of 3.5 billion landing to boost growth
According to Jibang consulting, benefiting from the substantial increase in demand in industrial control, new energy and new energy vehicles, China’s IGBT market will reach 52.2 billion yuan by 2025, with a compound annual growth rate of 19.11%. According to the data of IHS, the growth rate of silicon carbide devices is expected to exceed US $10 billion in 20272027, and the growth rate of silicon carbide devices is expected to be close to US $10 billion in 20272027.
The company has a strong demand for orders under the high boom of the industry. In 2021, the company added multiple fixed points of main motor controller platform of double electric control hybrid and pure electric vehicle based on 650V / 750V vehicle specification level IGBT module based on the sixth generation trenchfieldstop technology, and added multiple fixed points of main motor controller project of 800V system pure electric vehicle based on 1200V vehicle specification level IGBT module, It is expected to provide a continuous driving force for the company’s sales growth of IGBT modules of new energy vehicles from 2023 to 2029. At the same time, the company has added several main motor controller project points of 800V system using full sicmosfet modules, which is expected to provide a continuous driving force for the company’s SiC module sales growth from 2023 to 2029.
The 3.5 billion fixed growth project was officially implemented, and the overweight capacity helped the growth. The company will invest 1.5 billion yuan for the R & D and industrialization of high-voltage characteristic process power chips, 500 million yuan for the R & D and industrialization of SiC chips, and 700 million yuan for the automation transformation project of power semiconductor module production line. It is expected that after the completion of the project, the production capacity of 3 Shenzhen Zhenye(Group)Co.Ltd(000006) -inch high-voltage characteristic process power chips / Dongfeng Automobile Co.Ltd(600006) -inch SiC chips / 4 million new power semiconductor modules will be formed.
We believe that at present, as a leading enterprise in the field of IGBT in China, the company has made rapid progress in the field of new energy vehicles and power generation. With the overweight layout of fixed increase projects and the capacity expansion of high-voltage power chips, SiC chips and modules, the company has a clear long-term path planning. While continuously enriching the product structure, the company has completed the breakthrough of the bottleneck of module capacity, and is expected to grow at a high speed under the resonance of the downstream of the high boom and the wave of domestic substitution.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2024 will be 2.803 billion yuan, 4.065 billion yuan and 5.411 billion yuan respectively, and the EPS will be 3.73, 5.35 and 7.10 yuan respectively. The corresponding PE of the current stock price will be 93, 65 and 49 times respectively, maintaining the “recommended” investment rating.
Risk tips
Downside risk of industry prosperity, risk of product R & D progress falling short of expectations, risk of capacity construction falling short of expectations, risk of intensified industry competition, risk of overseas policy changes, etc.
