\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 11 Poco Holding Co.Ltd(300811) )
Event overview
The company disclosed the 2021 annual report, in which the operating revenue was 750 million yuan and the net profit attributable to the shareholders of the listed company was 120 million yuan.
Analysis and judgment:
Carbon neutralization helps the company’s performance continue to improve
During the reporting period, traditional advantageous application fields such as photovoltaic power generation, variable frequency air conditioning and data center maintained a high outlook, and incremental application fields such as new energy vehicles, charging piles and energy storage began to enter a rapid growth period. Based on years of forward-looking layout, the company further strengthened its market leading position in the metal magnetic particle core industry with its leading performance, cost and capacity advantages. As a supplier of core raw materials for inverters, the company has gradually upgraded and improved the “iron silicon generation 1” metal magnetic particle core, and established a set of metal magnetic particle core system covering the application of 5KHz ~ 2MHz frequency band, which can meet the performance needs of many application fields and firmly grasp the end users. However, the company’s gross profit margin declined to a certain extent, mainly due to the rise in the cost and price of raw materials. The company has made positive response plans. On the one hand, it transfers costs by raising prices. At the same time, the company continues to launch new generation materials to help customers optimize their costs. In 2021, a new ferrosilicon series product NPC was launched. As a new magnetic material facing the silicon carbide era, NPC series not only improves the DC superposition characteristics, but also optimizes the core loss, making a positive contribution to saving copper wire and improving efficiency of power module.
Explore the chip inductor market and build the second growth curve of the company
Take GPU power supply as an example. Generally, GPU needs buck power supply, the working voltage is 1.2V (reduced with the increase of process nodes), and the full load power is about 150W, which means that the current needs to be about 136a. In this scenario, the loss of peripheral components accounts for a large proportion. If metal soft magnetic particle core is used, because it has higher magnetic saturation density than ferrite, it can reduce the volume of inductance, reduce the use of copper, and finally reduce copper loss and improve work efficiency. Therefore, in many consumer electronics fields, especially in high-power application scenarios, such as power supply modules such as GPU and FPGA, the use of powder core has more advantages (low loss) than ferrite. At the same time, due to the gradual evolution of chip process nodes to 7Nm and 5nm, the working voltage is lower and the current is higher, and there will be more application scenarios of metal soft magnetic particle core. At present, the company has carried out further cooperation with NVIDIA, Infineon, AMD, Huawei and other manufacturers to send samples of products. On June 10, 2021, the company signed the system development partnership agreement with Infineon. The two sides will combine the company’s metal magnetic particle core, chip inductance components and other products with Infineon’s semiconductor products to complete the strategic layout of the chip inductance track through joint development. At the same time, the company has reached a cooperation with NVIDIA and AMD to supply GPU chip inductors for the two companies. In the future, with the rise of metauniverse, automatic driving and artificial intelligence applications, the use of GPU will continue to increase. As a potential GPU board supplier, the company will benefit in the future.
According to the market report released by Jon Peddie research, the GPU shipment (including integrated and independent graphics cards) used by 2021q4 PC reached 110 million, of which the shipment of independent graphics cards was about 13 million, an increase of 3% month on month and 18% year-on-year. With the continuous growth of GPU chip inductance materials, Yingda chip is expected to become a new example of gpu-8 inductance materials in the future.
Investment advice
We maintain the company’s profit forecast. It is estimated that the annual revenue from 2022 to 2023 will be 1.002 billion yuan and 1.359 billion yuan respectively, the net profit attributable to the parent company will be 174 million yuan and 272 million yuan respectively, and the EPS will be 168 million yuan and 262 million yuan respectively. It is estimated that the company’s 24-year revenue will be 1.68 billion yuan, the net profit attributable to the parent company will be 342 million yuan and the EPS will be 3.3 yuan. Corresponding to the closing price of 64 yuan / share on April 18, 2022, PE is 38x, 24x and 19x respectively, maintaining the “buy” rating.
Risk tips
The demand of photovoltaic market is not as expected, the market of new energy vehicles is not as expected, and the price of raw materials is further rising.
