\u3000\u3000 Shenzhen Minde Electronics Technology Ltd(300656) (300656)
Key investment points
Deepen the layout of power semiconductor industry chain and focus on building smartidm ecosystem
The company actively distributes the power semiconductor ecosystem. In June 2020, the company acquired Guangwei integration, a power semiconductor design company. In July 2020, the company increased its capital to participate in Jingrui electronics, a semiconductor silicon wafer company. In October 2021, the company increased its capital to participate in Zhejiang Guangxin microelectronics, a wafer foundry enterprise. It has completed the initial layout of the power semiconductor industry chain. It is rare in China in power semiconductor design and upstream silicon wafer manufacturing Wafer manufacturing enterprises have independent and controllable supply chain layout, and are committed to building a smartidm ecosystem of power semiconductors. Subsequently, the company will make rolling investment to expand production capacity, continue to pay attention to investment opportunities in the power semiconductor industry chain, further improve the layout of smartidm ecosystem, consolidate the foundation of supply chain system and lay a solid foundation for long-term development. It is expected that in the future, the power semiconductor industry will become the company’s core business and contribute to the company’s core competitiveness.
The independent bar code identification leader helps the rapid development of power semiconductor design
The company is deeply engaged in bar code identification technology and is the first enterprise in China with independent bar code identification technology research and development. As the starting business of the company, bar code identification industry will provide a steady stream of financial support for the early investment and development of power semiconductor industry. From 2017 to 2021h1, the company’s revenue of information identification and automation products was 123 million yuan, 149 million yuan, 157 million yuan, 176 million yuan and 89 million yuan respectively, and the gross profit margin was 49.55%, 44.63%, 43.36%, 43.91% and 47.41% respectively. The high gross profit of products provides continuous growth power for the development of the company. In the future, the core competitiveness of the company’s two business lines is expected to be further enhanced.
The constant increase project has added silicon carbide power devices, with solid theoretical & industrial technology reserves
The company is promoting a fixed increase project of 500 million yuan to raise funds for R & D and industrialization projects of silicon carbide power devices. The company plans to establish a special line for silicon carbide wafer production through joint investment and cooperation with wafer foundry, and carry out the design, R & D and industrialization of silicon carbide MOSFET and other products. The products are mainly used in photovoltaic inverter, power supply reactive power compensation, automotive electronics and other fields, forming an annual production capacity of 36000 6-inch silicon carbide wafers, Actively grasping the development opportunity of the third generation semiconductor power devices will help the company take the lead in seizing the technical highland in this field.
Profit forecast and valuation
It is steadily estimated that the company’s revenue in the next three years will be 521 / 721 / 1628 million yuan respectively, with a year-on-year increase of 29.2% / 38.4% / 125.7%; The net profit attributable to the parent company was 84 / 124 / 264 million yuan, with a year-on-year increase of 62.3% / 47.5% / 129.0%; The corresponding EPS is 0.70/1.03/2.20 yuan. The closing price on January 7, 2022 corresponds to 48xpe in 2022, which is covered for the first time and rated as “overweight”.
Risk tips
Industry cyclical fluctuation risk; Market competition risk; Technology R & D risk
