\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
[key points of investment]
In 2021, the company’s revenue and net profit attributable to the parent company increased by 77% and 120.5% year-on-year. The company released the annual report of 2021. In the whole year, the company achieved a revenue of 1.71 billion yuan, a year-on-year increase of 77.2%, a net profit attributable to the parent company of 400 million yuan, a year-on-year increase of 120.5%, a gross profit margin of 36.7%, a year-on-year increase of 5.2pct, a year-on-year net profit attributable to the parent company of 23.3%, a year-on-year improvement of 4.6pct, exceeding expectations.
In 2021, the revenue of the new energy industry increased by 166% year-on-year. In 2021q4, the company’s revenue reached a new high of 510 million yuan, an increase of 72.9% year-on-year and 6.7% month on month, indicating that the company, as a leading power semiconductor enterprise, fully enjoys the dividend of industry demand growth. In terms of downstream application fields, in 2021, the revenue of industrial control and power supply industry was 1.06 billion yuan, with a year-on-year increase of 50.6%, the revenue of new energy industry was 570 million yuan, with a year-on-year increase of 166.0%, and the revenue of frequency conversion white appliances and other industries was 60.06 million yuan, with a year-on-year increase of 59.5%. In terms of products, the revenue of IGBT module was 1.6 billion yuan, a year-on-year increase of 75.0%, and the revenue of other products was 100 million yuan, a year-on-year increase of 110.9%.
The market share of new energy vehicles increased. The vehicle specification level IGBT modules applied to the main motor controller produced by the company are equipped with more than Shanghai Pudong Development Bank Co.Ltd(600000) new energy vehicles, including more than 150000 class A and above models, and a large number of supporting overseas markets have begun. It is expected that the overseas market share will be further increased in 2022. In addition, the company’s share of semiconductor devices in new energy vehicles such as vehicle air conditioning, charging pile and electronic power steering will be further increased.
Product iteration helps the company grasp market growth. In 2021, the company added several fixed-point projects for 650V / 750A and 1200V vehicle gauge IGBT modules of the sixth generation trenchfieldstop technology, and successfully developed the new generation vehicle gauge 650V / 750V / 1200vigbt chip of the seventh generation micro trench trenchfieldstop technology. It is expected to start batch supply in 2022, small batch supply of vehicle gauge sgtmos, and fixed-point project of main motor controller of 800V system for sicmos module, which is expected to promote the revenue growth of the company in 2022. In the field of photovoltaic power generation, the company uses its own 650V / 1200vigbt chips and modules and discrete devices supporting fast recovery diode chips for mass installation and application in China’s mainstream photovoltaic inverter customers. It is expected that the market share will increase rapidly in 2022. The company will strengthen the research and development of high-voltage IGBT chips and launch 3300v-6500v high-voltage IGBT products applied to rail transit, power transmission and transformation and other industries.
Gross profit margin of IGBT module is improved. In 2021, the gross profit margin of the company improved by 5.2pct year-on-year, mainly due to the gross profit margin of IGBT module increased by 5.2pct to 37.1% year-on-year. Quarterly, the gross profit margin of the company improved quarter by quarter in the four quarters of 2021, 34.2%, 34.6%, 35.8% and 40.8% respectively.
[investment suggestions]
According to the omdia report quoted in Starpower Semiconductor Ltd(603290) 2021 annual report, the company ranked 6th in the global market share and 1st among Chinese enterprises in 2020. It is a leading IGBT enterprise in China. The company has established cooperative relations with many downstream customers to form a first mover advantage. In the field of new energy vehicles, the company has successfully ranked among the main suppliers of automotive IGBT modules in China, In the field of new energy, the company cooperates with mainstream photovoltaic / wind power inverter customers. In the field of industrial control, the company is the main supplier of IGBT modules for many head frequency converter enterprises. We believe that the company will grasp the broad prospect of the power semiconductor market and continue to make efforts in the new energy vehicle, industrial control and other markets, raise the company’s revenue forecast for 20222023 to RMB 2.71/3.66 billion respectively, raise the forecast of net profit attributable to the parent company to RMB 640 / 830 million respectively, increase the forecast of revenue and net profit attributable to the parent company in 2024 to RMB 4.80 and 1.06 billion respectively, and PE corresponds to 85.50, 66.16 and 51.69 times (closing price on April 16, 2022), Give the company an “overweight” rating.
[risk tips]
The supply of wafer foundry capacity is tight, the market demand for new energy vehicles fluctuates, and the R & D progress is less than expected.
