\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
The company released the first quarterly report of 2022. The company achieved revenue of 421 million in 2022q1, with a year-on-year increase of 30.79%; The net profit attributable to the parent company was 112 million, with a year-on-year increase of 50.11%; Deduct non net profit of 110 million, with a year-on-year increase of 48.29%. According to the company's incentive announcement, the share of equity incentive expenses in 2022 was 763188 million, including 190797 million in the first quarter. Considering adding back the amortized equity incentive expenses of nearly 20 million in each quarter, the operating net profit in a single quarter is estimated to exceed 130 million yuan, an increase of more than 20% month on month. The company continued its high-speed growth trend in 2021, mainly due to the rising prosperity of the power semiconductor industry driven by the rapid development of downstream automotive electronics, photovoltaic inverter, photovoltaic energy storage and other application scenarios.
The product structure continues to be optimized and the gross profit continues to be significant. The gross profit margin of 2022q1 company was 39.72%, up 6.23pct year-on-year. Compared with the same period last year, the gross profit margin increased significantly, and the profitability was continuously optimized. With the support of the industry, the company continued to optimize its product structure, allocate more resources to sgt-mosfet, IGBT and other products with higher profitability, and achieve rapid volume. In 2021, sgt-mosfet products accounted for 38.96%, with a year-on-year increase of 7.27pct; IGBT products achieved a sales revenue of 805144 million, with a year-on-year increase of 529.44%.
Continue to layout new businesses and build multi product lines of MOSFET, IGBT, third-generation chemical semiconductor and some driving IC. The company's products cover a full range of products with voltage ranging from 12V to 1700V. 12 inch 1200vigbt five series products are mass produced; 650V high density grooved gate IGBT products have been preliminarily developed; 12 inch sgt-mos products have successfully entered the head enterprise customers such as new energy vehicles, electric tools, lithium battery protection and high-end power supply. The newly developed high reliability products meet the requirements of the communication industry and enter the stage of mass production; The development of sicmos platform for 1200V new energy vehicles was carried out smoothly, the first streaming verification of 1200vsicmosfet was completed, and part of the product performance reached the advanced level in China.
Photovoltaic inverter and photovoltaic energy storage are the main growth points in 2022. In 2021, the company actively expanded middle and high-end industries such as automotive electronics, 5g base station, industrial automation, photovoltaic inverter and photovoltaic energy storage, successfully introduced Byd Company Limited(002594) and realized the mass supply of more than a dozen products in automotive electronics. According to the disclosure of the company's annual report, in 2022, the company will focus on the development of photovoltaic inverter and photovoltaic energy storage market, and take it as the main growth point of performance in 2022. At present, the company's IGBT and MOSFET products have been sold in large quantities in the leading enterprises of photovoltaic inverter and photovoltaic energy storage in China.
Profit forecast and investment suggestions: Wuxi Nce Power Co.Ltd(605111) is one of the leading power semiconductor design enterprises in China, with rich product lines and wide applications, and gradually layout the sealing and testing links of power devices. The company has deeply developed MOSFET and IGBT design, accumulated profound experience, maintained strong R & D technology advantages, and the track growth rate is fast. At the same time, it has deepened the domestic substitution process, and the company is expected to increase its share. It is estimated that the company will realize a net profit attributable to the parent company of RMB 555 / 671 / 972 million from 2022 to 2024, corresponding to pe3.3 billion 6 / 27.8/19.2x, maintain the "buy" rating.
Risk warning: the downstream demand is less than expected, and the progress of new product research and development is less than expected.
