\u3000\u3 Bohai Water Industry Co.Ltd(000605) 358 Hangzhou Lion Electronics Co.Ltd(605358) )
Events
The company released the first quarterly report of 2022 on April 11. In 2022q1, the company realized an operating revenue of 756 million yuan, a year-on-year increase of 64%, and a net profit attributable to the parent company of 238 million yuan, a year-on-year increase of 214%, close to the upper limit of performance forecast.
Brief comment
In 2022q1, the gross profit margin increased by 3.5pct to 50.3% month on month, and the net profit attributable to the parent company increased by 27% month on month. The gross profit margin of the company in 2022q1 was 50.3%, with a month on month increase of 3.5pct. In the first quarter, the sales / management / Finance / R & D expense ratio decreased by 0.4/0.8/1/2.6pct month on month respectively, and the net profit attributable to the parent company increased by 27% month on month, and the net profit reached 32.9%, with a month on month increase of 7pct. The price of some silicon products of the company increased, and the price of power devices was flat month on month in the first quarter.
Silicon wafer business: the prosperity of the industry continues, and the company’s 12 inch products increase rapidly
1) it is estimated that silicon wafer production capacity will continue to fall short of demand in 202223. The high capital expenditure of downstream wafer factories drives the growth of silicon wafer demand, and the expansion of silicon wafer factories lags behind. It is expected that the silicon wafer production capacity will continue to be in short supply in 202223, and sumco, the world’s second largest silicon wafer factory, is expected to increase the price until at least 2024.
2) as a leading manufacturer of heavily doped silicon wafers in China, the company has a long-term full capacity production line. At present, the supply of 6 / 8-inch heavily doped epitaxial wafers is in short supply, and the scale of 12 inch silicon wafers is gradually increasing. By the end of 2021, the production capacity will reach 150000 pieces / month, and the technical capacity has covered more than 14nm technology node logic circuits, image sensor devices and power devices. In 2022, the volume of 12 inches is expected to increase rapidly. In March, it spent 1.5 billion yuan to acquire 78% shares of Guojing semiconductor and improve the layout of 12 inch light doped chips of the company.
New energy vehicles and photovoltaic drive the growth of the company’s power devices: in 2021, the company’s power device business increased significantly, and the gross profit margin of products improved significantly. Among them, photovoltaic products accounted for 46% of the total shipment of power devices in the whole year, 43% – 47% of the global sales of photovoltaic chips in 2021, the shipment of grooved chips increased by 260% year-on-year, and the planar Schottky increased by 170% year-on-year. Schottky and MOS chips continued to be in short supply.
Actively layout compound semiconductors and further open up growth space: the subsidiary Leon Dongxin has built a foundry manufacturing capacity of 70000 GaAs RF chips per year and started batch shipment. In 21 years, it has achieved a revenue of 44 million yuan, a year-on-year increase of 474%, and developed a production capacity of 0.15% μ A number of processes and products with the characteristics of low cost, high performance, high uniformity and high reliability, such as me modephemt, have more than 60 high-quality customer groups, including angruiwei and xinbaite.
Profit forecast and investment suggestions
It is estimated that the company’s revenue from 2022 to 2024 will be 4 / 55 / 6.4 billion yuan, with a year-on-year increase of 59% / 36% / 17%; The net profit attributable to the parent company was 9.5/12.9/1.51 billion yuan, with a year-on-year increase of 59% / 35% / 18%, corresponding to 40 / 29 / 25 times of PE, maintaining the “buy” rating.
Risk tips
The downstream customers’ verification and penetration do not meet the expected risk; Industry competition intensifies; Price fluctuation of raw materials; Risk of falling price of power devices; Risk of lifting the ban on restricted shares.
