\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
The company achieved high growth in 2022q1, the gross profit margin remained high and maintained the “buy” rating
The company released the first quarter report of 2022 and achieved a revenue of 421 million yuan, a year-on-year increase of 30.79% and a month on month increase of 5.45%; The net profit attributable to the parent company was 112 million yuan, a year-on-year increase of 50.11% and a month on month increase of 12.70%. If the 19.08 million yuan of equity incentive expenses allocated and withdrawn by the company in 2022q1 are added back, the net profit attributable to the parent company will reach 131 million yuan, with a year-on-year increase of 75.59% and a month on month increase of 31.83%. The company achieved a gross profit margin of 39.72% in 2022q1, maintaining the high level since 2021q2, with a year-on-year increase of 6.23 PCT. The company seizes the opportunity of the industry boom, actively improves the product structure and customer structure, and is building a more stable and strong profitability. We raised the profit forecast for 2022 and maintained the forecast for 20232024. It is estimated that the net profit attributable to the parent company in 20222024 will be 511 / 685 / 892 million yuan (the original value in 2022 will be 481 million yuan), the corresponding EPS will be 3.58/4.80/6.25 yuan, and the current share price will be 36.5/27.2/20.9 times PE, maintaining the “buy in” rating for the company.
With continuous R & D investment and market development, photovoltaic IGBT is expected to become an important growth source of the company in 2022
The company’s 12 inch 1200vigbt products have been stably mass produced and applied to the photovoltaic inverter industry. In 2021, batch supply has been started in a number of typical customers in the industry. It is expected to further increase in volume in 2022, becoming an important source of growth in the company’s performance. In addition, the company’s 650V high-density grooved gate IGBT products using carrier storage technology have been preliminarily developed, and a number of IGBT module products have entered small batch production. The company will gradually build the module packaging capacity by virtue of its subsidiary Jinlan semiconductor company, and is expected to nugget a broader centralized photovoltaic inverter and vehicle regulation IGBT market in the future. With the strategic cooperation relationship with Huahong Hongli, the OEM capacity of the company is fully guaranteed, and the 12 inch IGBT capacity will further increase in 2022. The company also actively develops new wafer foundry at home and abroad to provide support for the sustainable development of the company.
The customer structure has been significantly improved to achieve high-quality development
Seizing the opportunity of high prosperity in the downstream, the company has introduced more high-end products into emerging application fields. The company has actively developed medium and high-end industries such as automotive electronics, photovoltaic inverter and energy storage, 5g base station power supply, industrial automation and high-end electric tools. For example, in 2021, the company focused on introducing Byd Company Limited(002594) , which has realized the mass supply of more than a dozen products. At the same time, the company’s products have also entered the whole machine parts factories of several automobile brands, The overall sales proportion of automotive electronic products has been rapidly increased, which is expected to provide important support for the rapid growth of the company in 2022.
Risk tip: OEM capacity development is less than expected; Decline in industry demand; Increased competition and decline in gross profit margin.
