\u3000\u3 Guocheng Mining Co.Ltd(000688) 187 Zhuzhou Crrc Times Electric Co.Ltd(688187) )
[matters]
Zhuzhou Crrc Times Electric Co.Ltd(688187) announce the new progress of SiC. The company announced that CRRC times semiconductor, a subsidiary, invested 460 million yuan in the construction project of improving the technical capacity of SiC chip production line. After the completion of the production line, the technical capacity of the existing planar gate sicmosfet chip will be improved to meet the R & D capacity of grooved gate sicmosfet chip, the existing 4-inch SiC chip will be increased to 6 inches, and the annual production capacity of the existing 4-inch SiC chip line will be increased from 10000 pieces to 25000 pieces / year of 6-inch SiC chip line, The construction period of the project is 2 years.
[comments]
The construction project of improving the technical capacity of SiC chip production line will accelerate the process of SiC industry of the company. The implementation of this project by the company will form a SiC chip mass production line for new energy vehicles and rail transit, and further develop high-performance new products, which can further promote the progress of semiconductor process technology in the CRRC era, improve the industrialization level, realize the autonomy of key chips of the third generation semiconductors and enhance the competitiveness of the company. The company’s semiconductor industry will be committed to building advanced independent core technology of power semiconductor devices, relying on strong application and industrial platform, and strengthening the complete industrial chain of “chip module module module device system”. At present, the company’s SiC products have achieved application demonstration in subway, new energy vehicles, photovoltaic and other market fields. This project will accelerate the process of the company’s SiC industry.
Fast iterative power device products in IDM mode Zhuzhou Crrc Times Electric Co.Ltd(688187) as one of the few semiconductor IDM companies in China, it covers the whole industrial chain of IGBT design, manufacturing and packaging test, which is conducive to the rapid iteration of vehicle specification IGBT products. At present, the company’s vehicle specification level IGBT cooperative vehicle enterprises include BAIC, Dongfeng, GAC and FAW. The scene application of new energy vehicles or promote the improvement of the company’s vehicle specification level IGBT product line. The company’s entry into SiC will help to seize new opportunities in SiC industry and further improve the company’s process platform capacity, product R & D capacity and manufacturing capacity.
Profit forecast. We estimate that the company’s revenue from 2022 to 2024 will be 15.64/16.88/18.38 billion yuan respectively, and the net profit attributable to the parent company will be 2.01/22.0/23.2 billion yuan respectively. PE corresponds to 32.27, 29.42 and 27.87 times (closing price on April 12, 2022), giving the company 25 times PS in 2022 and the corresponding market value of 53.4 billion yuan. Other businesses except power semiconductors are valued according to the P / E ratio, giving the company 23 times P / E ratio in 2022 and the corresponding market value of 46.1 billion yuan. To sum up, we expect the reasonable market value of the company to be 99.5 billion yuan, corresponding to the six-month target price of 70.28 yuan / share, maintaining the Zhuzhou Crrc Times Electric Co.Ltd(688187) “buy” rating.
[risk tips]
Rail transit equipment, increased competition in the power semiconductor industry, the risk of high customer concentration, and the decline of power semiconductor production capacity is less than expected.
