\u3000\u3 Guocheng Mining Co.Ltd(000688) 396 China Resources Microelectronics Limited(688396) )
Event:
The company released the first quarterly report of 2022, with an operating revenue of 2.514 billion yuan, a year-on-year increase of 22.94%; The net profit attributable to the parent company was 619 million yuan, a year-on-year increase of 54.88%; Net profit deducted from non parent company was 600 million yuan, with a year-on-year increase of 62.00%. The company released its annual report for 2021, with an operating revenue of 9.249 billion yuan, a year-on-year increase of 32.56%; The net profit attributable to the parent company was 2.268 billion yuan, a year-on-year increase of 135.34%; The net profit deducted from non parent company was 2.099 billion yuan, with a year-on-year increase of 145.98%.
Comments:
The company upgraded the customers and products of power devices, and the revenue and profit increased significantly. In 2021, the sales revenue of the power device business group increased by 35% year-on-year, the gross profit margin increased by 12 percentage points year-on-year, and the net profit increased by about 150%. Benefiting from the prosperity of the semiconductor industry and the import substitution window period, the power device business group gives full play to the advantages of the company’s whole industrial chain, continues to promote innovative breakthroughs in core technologies and R & D capabilities, and carries out structural optimization of products, businesses and customers. The power device business group pays close attention to the localization window period of high-end applications of power devices, promotes the upgrading of market applications with a special mode, and has formed a scale output value of 100 million yuan in high-end application fields such as communication, photovoltaic new energy and automotive electronics, taking a solid step in the localization process of high-end application fields.
IGBT technology and customers have made continuous breakthroughs, and the sales scale has increased rapidly. In 2021, the sales revenue of IGBT products increased by 57% year-on-year. The power device business group accelerated the upgrading of 6-inch IGBT products and the development of 8-inch IGBT technology platform and product serialization research and development, gave full play to the advantages of the company’s own IGBT process technology and capacity resources, strengthened the research and development of IGBT modules, and actively expanded the leading customers in the medium and high-end markets such as UPS, Cecep Solar Energy Co.Ltd(000591) inverter, frequency converter and other industrial control fields, photovoltaic fields and automotive electronics fields. Taking the opportunity of the audit of international automobile manufacturers, the power device business group actively promotes the construction of automobile electronic system, carries out product project approval and R & D and aec-q101 system assessment with reference to the project process of automobile industry, and improves the vehicle specification product system and supply capacity.
Significant breakthroughs in technology and industrialization have been made in the field of third-generation compound semiconductor devices. In 2021, the comprehensive performance of the new generation sicjbs devices independently developed by the power device business group reached the advanced level in the industry. The products were widely recognized by clients in the industrial control fields such as charging pile, Cecep Solar Energy Co.Ltd(000591) inverter and communication power supply, and the sales revenue in 2021 achieved a breakthrough growth; At the same time, the independently developed planar 1200vsicmosfet has entered the risk mass production stage, and the static technical parameters have reached the level of foreign benchmarking samples; The static parameters of the first generation 650V silicon-based gallium nitride d-mode device samples independently developed have reached the foreign benchmarking level, and the performance is equivalent to that of the benchmarking samples. The 1000 hour reliability assessment of three batches has been completed and the transition to mass production has been entered; The performance of the first generation 650V silicon-based gallium nitride e-mode device independently developed meets the standard, and the device packaging development is completed.
The integrated circuit business group has actively expanded downstream application fields and made rapid progress in white power and industrial frequency converters. In 2021, the sales revenue of the integrated circuit business group increased by 71% year-on-year. The integrated circuit business group seizes market opportunities, increases product structure adjustment, expands internal and external resources, takes customers as the guide and market application as the guide, actively arranges the application fields of batteries, power supplies and motors, further expands the market share of China’s white household appliances and industrial frequency converters, makes product breakthroughs in the field of intelligent sensors and intelligent control, and gives full play to the scale advantages of photoelectric sensor products to continuously develop new products, new customers New markets have achieved positive results.
In 2021, the revenue of all major product lines of the integrated circuit business group increased year-on-year, including 28% year-on-year growth of standard product line, 93% year-on-year growth of LED product line, 21% year-on-year growth of fire fighting and sensing product line, 71% year-on-year growth of photoelectric product line, 95% year-on-year growth of drive and MCU product line, 90% year-on-year growth of electric tool product line, 1033% year-on-year growth of smart grid and AC-DC product line The wireless charging product line increased by 158% year-on-year.
The technology and production capacity of many process platforms of the OEM business group have been further improved. The company accelerates the pace of innovation, strengthens its core competence, and improves its market competitiveness by improving its quality system and implementing intelligent manufacturing. In 2021, the manufacturing and service business segment achieved a sales revenue of 4.801 billion yuan, a year-on-year increase of 25.43%.
In 2021, the comprehensive technical capability of the 0.18um BCD process platform of the OEM business group was further improved, the customer promotion effect was remarkable, the mass production capacity of various categories of products was rapidly improved, and the 0.18um medium and high voltage vehicle specification BCD process technology was launched; The technical performance of 0.11um BCD technology platform meets the standard and is recognized by mainstream customers; Soi-bci process platform has been successfully introduced to the market, and typical products have entered the stage of mass production; MEMS technology continues to maintain its industrialization advantage. 8-inch silicon microphone and photoelectric process products are produced on a large scale, and the yield is steadily improved..
In 2021, the 600V high-voltage drive IC process platform independently developed by the OEM business group is in a leading position in China and internationally. It has the characteristics of less lithography layers, high cost performance, stable electrical parameters and yield. The process has been highly recognized by customers. It is mostly used in motor drive, intelligent power module (IPM), high-power power supply and other products. The terminal applications are widely involved in industrial Electromechanical, household appliances, intelligent switches, automotive electronics and other fields.
Profit forecast, valuation and rating: we are optimistic about the company’s rapid development in new energy vehicles, photovoltaic power generation, industrial control and other fields in the next few years. We raised the operating revenue of the company from 2022 to 2023 to RMB 11.503 (+ 1.27%) and RMB 13.457 (+ 3.32%) respectively, and adjusted the net profit attributable to the parent company from 2022 to 2023 to RMB 27.58 (+ 3.97%) and RMB 2.953 (- 0.87%) respectively. The new operating revenue in 2024 is predicted to be 15.567 billion yuan, and the net profit attributable to the parent company is predicted to be 3.115 billion yuan. The current market value corresponds to 23x, 21x and 20x PE from 2022 to 2024 respectively, maintaining the “buy” rating.
Risk tips: technology and product R & D risks; Trade environment impact.
