\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 73 Yangzhou Yangjie Electronic Technology Co.Ltd(300373) )
Core view
The power IDM leader of the whole industrial chain with the transformation of “trade industry technology”. The company started with the sales of electronic components, and then gradually established power semiconductor packaging and chip production lines. Since listing, the company has gradually expanded to silicon wafer, epitaxial and upstream semiconductor materials through acquisition. At present, the company is mainly engaged in power semiconductor devices, with a wide range of products, including rectifier diodes, protection devices, small signal, MOSFET, high-power modules, IGBT and SiC, and sells some silicon wafers and chips.
“Yangjie” and “MCC” double brand operations have opened up China’s foreign market space. With the cost advantage brought by the scale growth of China’s power semiconductor enterprises, the trend of traditional power device industry transferring to China is obvious. In the subdivided fields such as rectifier bridge and diode, the company has occupied the top position in the world. With the American “MCC” brand acquired by the company in 2015, the sales scale of the company’s products in overseas markets continued to increase.
With high R & D investment, IGBT, high-power modules and SiC products are laid out, ushering in the harvest period. Since 2017, the company has begun to vigorously layout the medium and high-end product lines of power semiconductors, such as IGBT, Sgt MOS and SiC diodes. In 2021, with the explosive growth of downstream demand, the company’s products accelerated the process of localization and introduction, and the revenue of MOSFET, IGBT and high-power module products increased by + 130%, + 500% and + 35% year-on-year respectively. With the rapid growth of downstream photovoltaic, new energy vehicles and other industries, the company’s medium and high-end new product lines are expected to benefit deeply.
Capacity expansion ensures growth, and traditional devices continue to expand to automobile, industry and photovoltaic. The company’s traditional product line includes rectifier devices, photovoltaic diodes and protective devices. Among them, the rectifier device company is firmly in the leading position in the industry, and the product structure is gradually transferred from consumer electronics to new energy and vehicle regulation; Photovoltaic diodes are expected to maintain rapid growth with the downstream photovoltaic industry; With the continuous expansion of application scenarios of protective devices, the company still has a large share of expansion space.
The concentration of key customers continues to improve, and channel reuse helps accelerate the expansion of new products. In recent years, the company has begun to implement the key customer concentration strategy. From 2017 to 2020, the proportion of the company’s top five customers increased from 10.19% to 16.58%. There are many kinds of power devices, and downstream customers need a variety of series and specifications in production. In order to ensure the stability of the whole product, customers tend to choose the one-stop service of the same brand. Benefiting from the company’s good channel relationship with key customers, the company’s IGBT, SiC and high-power module products are expected to accelerate the introduction.
Profit forecast: we expect the company’s net profit attributable to the parent company in 2021, 2022 and 2023 to be RMB 758 / 11.41/1.545 billion respectively, corresponding to the PE of the stock price on April 18 to be 44 / 29 / 22 times respectively, maintaining the “buy” rating.
Risk tip: PV installation slows down, product introduction is less than expected, and R & D is less than expected.
