Under the background of global core shortage, the operation of integrated circuit industry has been greatly improved in 2021. According to the data, all listed companies in the IC sector that have disclosed the annual report or express report of 2021 have achieved year-on-year growth in net profit attributable to the parent company. At the same time, with the support of incentive policies, the R & D investment of Listed Companies in this sector has also continued to increase in recent three years.
However, what does not match the performance is that the stock price performance of listed IC companies this year is not optimistic. Public data show that as of the closing on April 11, the A-share market integrated circuit sector index (803131. EI) has fallen by 30.16% in the year, and several stocks in the sector have even fallen by more than 40% in the year.
In this regard, Yang Ruyi, partner of Chunshi group, said in an interview with the reporter of Securities Daily that in this case, the valuation of the whole semiconductor sector has been compressed to a relatively low level in 2018. In the long run, this position and time point deserve attention.
According to the data of China stock market news choice financial terminal, as of April 11, there were 45 companies in the integrated circuit sector of the A-share market, and 32 companies have issued annual reports or express reports for 2021.
According to the profitability, all of the above 32 listed companies achieved year-on-year growth in net profit attributable to shareholders of the parent company during the reporting period. Four of them increased by more than 1000% year-on-year, namely Hangzhou Silan Microelectronics Co.Ltd(600460) , Nations Technologies Inc(300077) , Ninestar Corporation(002180) and Ingenic Semiconductor Co.Ltd(300223) .
It is noteworthy that several listed IC companies with high performance growth mentioned in the announcement that the profit growth of the company during the reporting period was significantly related to the rapid development of the new energy vehicle terminal market.
Yang Ruyi said that from the perspective of prosperity, during the reporting period, due to the lack of core and rising prices caused by tight production capacity, the year-on-year and month on month growth rate of integrated circuit enterprises reached an all-time high in the second quarter of 2021. After that, although it still increased month on month in the third quarter and fourth quarter, the growth rate declined.
According to Yang Ruyi, the IC industry has achieved rapid development in the subdivided fields of design, wafer manufacturing, materials and equipment, and the core endogenous driving force mainly comes from domestic substitution.
“In the wave of global core shortage in the past two years, Chinese manufacturers have appeared in medium and high-end fields such as automobiles, industrial control and servers. The global ‘core shortage’ has helped China’s integrated circuit industry break through to various medium and high-end fields.” Yang Ruyi said.
Peng Ronghui, a researcher of Rongzhi investment under private placement paipai.com, said that the market share of Chinese IC manufacturers has increased significantly, which has promoted the rapid year-on-year growth of profits of Listed Companies in this sector.
When combing the financial reports, the reporter of Securities Daily noted that among the above 45 listed companies, 17 have disclosed the complete annual report of 2021. The data show that all the 17 listed companies achieved year-on-year growth in R & D expenses during the reporting period, of which 15 achieved the same growth for two consecutive years.
ye Yindan, a researcher of Bank Of China Limited(601988) Research Institute, said in an interview with the reporter of Securities Daily that in recent years, the R & D expenses of most listed companies in the industry have continued to grow, reflecting that the industry has gradually entered a benign competition stage dominated by technological progress and the healthy development of the industry.
Ye Yindan introduced that although the large R & D expenditure will affect the current profit and performance of the enterprise, in the long run, the R & D expenditure will eventually be reflected in the future profitability and development prospects of the enterprise. From the long-term performance of Listed Companies in the integrated circuit sector in the past, most companies focusing on R & D have shown the ability of long-term sustainable development and brought better returns to investors.
Peng Ronghui believes that the certification barriers of downstream customers in the semiconductor industry are high, and the subsequent R & D expenses are expected to continue to grow.
“In the future, the gap between supply and demand of China’s integrated circuit industry is still large. At the same time, it is difficult to effectively improve the gap for a long time in the future. The high boom cycle of the integrated circuit sector is expected to continue. For enterprises with strong R & D strength and a high proportion of their own technology in the industry, their future development prospects and investment value are relatively large.” Ye Yindan said.
