\u3000\u3000 Wuxi Nce Power Co.Ltd(605111) (605111)
Events
Wuxi Nce Power Co.Ltd(605111) release the annual performance forecast for 2021: it is estimated that the net profit attributable to the parent company in 2021 will be 408-413 million yuan, with a year-on-year increase of 192.78% – 196.37%, and the net profit attributable to the parent company after deduction will be 400-405 million yuan, with a year-on-year increase of 196.76% – 200.47%.
Key investment points
The performance forecast of 2021 is in line with expectations and benefits from the business cycle of the industry
According to the calculation of the company’s annual performance forecast in 2021, the company’s net profit attributable to the parent company in Q4 in 2021 is expected to be 97-102 million yuan, with a year-on-year increase of 155.26% – 168.42%. The high-speed growth of the company’s performance mainly benefits from the accelerated localization process in the subdivided fields of the power semiconductor industry, the continuous rise of prosperity and the shortage of products. Focusing on market demand, customer demand and industry development trend, the company actively carries out R & D upgrading and product technology iteration; Continuously develop and maintain supply chain resources to obtain more capacity support; Continuously optimize the market structure, customer structure and product structure, quickly improve the sales scale and proportion of shielded grid power MOSFET, IGBT and other products, successfully develop emerging markets such as photovoltaic energy storage and new energy vehicles and their key customers, and achieve a large number of sales, so as to finally achieve a better growth in business scale and economic benefits.
Domestic MOSFET pioneer, layout vehicle specification module and third generation semiconductor are expected in the future
The company is a leading semiconductor power device design enterprise in China. It is one of the first local enterprises in China to have four product platforms: trench power MOSFET, superjunction power MOSFET, shielded gate power MOSFET and IGBT. It is also one of the design enterprises with the most complete MOSFET product series and advanced technology in China. Up to now, it has a voltage range of 12v-1700v There are about 1500 multi series subdivision models in the current range of 0.1a-450a. The company’s products are widely used in consumption, industry, new energy vehicles / charging piles, photovoltaic and other fields, and have been supplied to many leading customers, including Byd Company Limited(002594) , Contemporary Amperex Technology Co.Limited(300750) , Dajiang innovation, Zte Corporation(000063) , Foxconn, TTI, Sungrow Power Supply Co.Ltd(300274) , Ningbo Deye Technology Co.Ltd(605117) , Shenzhen Topband Co.Ltd(002139) , Great Wall Motor Company Limited(601633) , Huabao energy, Desai Lanwei, Sunwoda Electronic Co.Ltd(300207) , Kehua Data Co.Ltd(002335) , Shenzhen Sosen Electronics Co.Ltd(301002) , Leedarson Iot Technology Inc(605365) , Haier, Midea No. 9 company, Guangzhou Shiyuan Electronic Technology Company Limited(002841) , TP-LINK, Xingheng power supply, Yushi technology, baoshide, deshuo industry, Scud, gosbao, Jin Shengyang, Shanghai Bright Power Semiconductor Co.Ltd(688368) , Wuxi Jinghui, Ecovacs Robotics Co.Ltd(603486) , Changshu Tianyin Electromechanical Co.Ltd(300342) , Zhejiang Dahua, etc.
On November 12, 2021, the company issued the announcement of the plan for non-public offering of a shares, and proposed to raise no more than RMB 1.45 billion for the third generation semiconductor SiC / GaN power device and package test project (RMB 200 million), power drive IC and intelligent power module (IPM) project (RMB 600 million), SiC / IGBT / MOSFET and other power integration modules (including vehicle specification level) project (RMB 500 million) and supplementary working capital (RMB 150 million). We believe that the third generation semiconductor and power integration module is the general trend of the development of the power industry. The company is expected to upgrade its product structure through this raised investment layout, so as to further strengthen the company’s core competitiveness in the high-end application market of semiconductor power devices, At the same time, it is conducive for the company to further seize the opportunity of the development of downstream industries to obtain greater market share in the future.
Profit forecast
Without considering the impact of additional issuance, it is predicted that the company’s revenue from 2021 to 2023 will be RMB 1555 million, RMB 2106 million and RMB 2723 million respectively, and its EPS will be RMB 291 million, RMB 378 million and RMB 4.88 respectively. The corresponding PE of the current stock price is 51, 39 and 30 times respectively, and the company is given a “recommended” investment rating.
Risk tips
Downside risk of downstream industry prosperity, risk that the progress of raised investment projects is less than expected, risk that the progress of additional issuance is less than expected, risk of intensified industry competition, risk of overseas policy changes, etc.
