\u3000\u3 Guocheng Mining Co.Ltd(000688) 396 China Resources Microelectronics Limited(688396) )
The company issued the 2021 annual report and 2022q1 report, with rapid growth in performance and maintaining the “buy” rating
In 2021, the company achieved a revenue of 9.249 billion yuan, a year-on-year increase of 32.56%, and a net profit attributable to the parent company of 2.268 billion yuan, a year-on-year increase of 135.34%. The company maintained a high capacity utilization rate throughout the year, achieved rapid growth in performance, and achieved a gross profit margin of 35.33%, an increase of 7.86 PCT year-on-year. The company continued its high growth in 2022q1, achieving a revenue of 2.514 billion yuan, a year-on-year increase of 22.94%, a net profit attributable to the parent company of 619 million yuan, a year-on-year increase of 54.88%, a gross profit margin of 36.51%, and a year-on-year increase of 5.04 PCT. The company continues to enrich its product series, optimize its product structure, seize the opportunity of domestic substitution and improve its market share. We added a new profit forecast for 2024 and raised the forecast for 20222023. It is estimated that the net profit attributable to the parent company in 20222024 will be RMB 2.76032403629 billion (the original value of 20222023 is RMB 2.5062869 billion), the corresponding EPS will be RMB 2.09/2.45/2.75, and the corresponding PE of the current stock price will be 22.7/19.3/17.3 times, maintaining the “buy” rating of the company.
IDM business is growing rapidly, and the products of devices and IC business groups continue to make breakthroughs in the medium and high-end fields
In 2021, the sales revenue of the company’s products and solutions business reached 4.357 billion yuan, a year-on-year increase of 40.37%, accounting for 47.11% of the total revenue, an increase of 2.62 PCT year-on-year. Among them, the revenue of power device business group increased by 35% year-on-year, and the gross profit margin increased by 12 PCT year-on-year. The company’s MOSFET products strengthened cooperation with head customers, accelerated platform technology iteration, and the revenue increased by 33%. The company strengthened the research and development of IGBT modules, expanded the top customers in the medium and high-end markets such as industrial control field, photovoltaic field and automotive electronics field, and the annual sales revenue of IGBT products increased by 57% year-on-year. The company actively promotes the connection of Runxi micro’s 12 inch power semiconductor production line by the end of 2022, which is expected to provide capacity support for the company’s power device business and further open up growth space. The revenue of the company’s integrated circuit business group increased by 71% year-on-year in 2021. The company actively deployed the application fields of battery, power supply and motor, and further expanded the market share of China’s white power, industrial frequency converter and so on.
OEM business constantly cultivates internal skills and introduces medium and high voltage vehicle gauge BCD process technology, which can be expected to grow
The company’s manufacturing and service business segment achieved a sales revenue of 4.801 billion yuan, a year-on-year increase of 25.43% under the condition of limited capacity / output growth. The OEM business group of the company launched 0.18um medium and high voltage vehicle gauge BCD process technology to further consolidate the company’s leading position in China in high voltage BCD process. The company’s packaging and testing business group has a full range of power device packaging technology solutions. A comprehensive IPM packaging platform will be formed in 2021, and efforts will be made to build a core device packaging platform in the field of new energy and energy storage, laying a solid foundation for subsequent business growth.
Risk tip: production capacity construction is less than expected, demand is less than expected, industry competition intensifies, and gross profit margin declines.
