\u3000\u3000 Wuxi Nce Power Co.Ltd(605111) (605111)
Event: on January 11, the company announced that the net profit attributable to shareholders of Listed Companies in 2021 is expected to be 408 million yuan to 413 million yuan, an increase of 268.6458 million yuan to 273.6458 million yuan compared with the same period of last year, a year-on-year increase of 192.78% to 196.37%.
The prosperity of power devices continues to rise, and the localization process accelerates: since 2021, the demand of downstream photovoltaic, new energy and other industries in the power semiconductor industry has continued to rise, the prosperity of the industry has increased, the localization process has accelerated, and the product supply exceeds the demand. Focusing on market demand, customer demand and industry development trend, the company actively carries out R & D upgrading and product technology iteration, continuously develops and maintains supply chain resources, continuously optimizes market structure, customer structure and product structure, rapidly improves the sales scale and proportion of shielded grid power MOSFET, IGBT and other products, and successfully develops photovoltaic energy storage and new energy vehicles, Emerging markets and their key customers and achieve a large number of sales, and finally achieve a substantial increase in business scale and economic benefits.
The fixed value-added project cuts into the third generation semiconductor field and is expected to enhance the company’s competitiveness: on November 12, 2021, the company issued the plan for non-public development of A-Shares in 2021, which plans to raise a total of no more than 1450 million yuan (including 1450 million yuan), and plans to invest 200 million yuan in the R & D and industrialization of the third generation semiconductor SiC / GaN power devices and packaging test, The construction period is 24 months, and the investment payback period (after tax, including construction period) is 6.32 years; The R & D and industrialization project of power driven IC and intelligent power module (IPM) with an investment of 60 million yuan has a construction cycle of 36 months and an investment payback period (after tax, including construction period) of 6.41 years; RMB 500 million is invested in the R & D and industrialization projects of SiC / IGBT / MOSFET and other power integration modules (including vehicle specification level). The construction cycle is 36 months and the investment payback period (after tax, including construction period) is 7.85 years. The white paper on the application development and investment value of the third generation semiconductor under the “new infrastructure” in 2020 points out that the market scale of China’s third generation semiconductor will be 9.415 billion yuan in 2019, and it is expected to maintain an average growth rate of more than 85% from 2019 to 2022. By 2022, the market scale will reach 62.342 billion yuan. The company is expected to benefit from new energy vehicles, charging piles, photovoltaic inverter, 5g communication, laser power supply New demand for third-generation semiconductors in high-end emerging industries such as servers and consumer electronics fast charging.
It is proposed to implement the stock incentive plan and enhance the incentive strength of employees: the company issued the administrative measures for the evaluation of the restricted stock incentive plan in 2021 (Revised Version) on December 7, 2021. The annual performance evaluation target of the restricted stock granted for the first time in the incentive plan is the first lifting of the restriction period, and the total operating revenue of the company in 2022 will not be less than 1.6 billion yuan, In the second lifting period, the total operating revenue of the company in 2023 will not be less than 1.8 billion yuan. If part of the restricted shares reserved in the incentive plan are granted in 2022, the performance assessment objectives of each year are consistent with the arrangement for the first grant of restricted shares: if part of the restricted shares are granted in 2023, it is required to lift the restriction in the first period. The total operating revenue of the company in 2023 is not less than 1.8 billion yuan and that in 2024 is not less than 2 billion yuan. ESOP helps to enhance employee incentive and enhance the competitiveness of the company.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be RMB 1.604 billion, RMB 2.166 billion and RMB 2.816 billion respectively, and the net profit attributable to the parent company will be RMB 410 million, RMB 501 million and RMB 623 million respectively, maintaining the “Buy-A” investment rating.
Risk warning: the fixed increase project is not as expected; The issuance of equity incentive plan is less than expected; The prosperity of the industry is lower than expected; Product development is not as expected; Market development was less than expected.
