\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 745 Wingtech Technology Co.Ltd(600745) )
Matters:
The company released its annual report for 2021. In 2021, the company achieved revenue of 52.729 billion yuan (1.98% YoY) and net profit attributable to shareholders of listed companies of 2.612 billion yuan (8.12% YoY). The company plans to distribute a cash dividend of 2.0382 yuan (including tax) to all shareholders for every 10 shares.
Ping An View:
Clear strategic layout and build a hardware based technology product company: the company released its annual report for 2021. In 2021, the company achieved a revenue of 52.729 billion yuan (1.98% YoY) and a net profit of 2.612 billion yuan (8.12% YoY) attributable to shareholders of listed companies. The company plans to distribute a cash dividend of 2.0382 yuan (including tax) to all shareholders for every 10 shares. In 2021, the company’s overall gross profit margin and net profit margin were 16.17% (0.96pctyoy) and 4.77% (0.01pctyoy) respectively. The decline in the company’s product integration gross profit margin was mainly due to the impact of the rise in raw materials on ODM business and some projects belonging to the investment period. By business: the company’s semiconductor business realized a revenue of 13.803 billion yuan, a year-on-year increase of 39.54%, a gross profit margin of 37.17% (a year-on-year increase of 11.55 PCT), and a net profit of 2.632 billion yuan, a year-on-year increase of 166.31%; The company achieved a product integration business revenue of 38.685 billion yuan, a year-on-year decrease of 7.16%, a gross profit margin of 8.71% (a year-on-year decrease of 3.14 PCT), and a net profit of 184 million yuan. Expense side: in 2021, the company’s financial expense rate, sales expense rate, management expense rate and R & D expense rate were 0.72% (-0.93pctyoy), 1.44% (-0.65pctyoy), 3.84% (1.35pctyoy) and 5.10% (0.80pctyoy) respectively. The overall expense rate of the company was relatively stable. In terms of extension mergers and acquisitions, the company completed the acquisition of camera module CCM related assets, and realized asset delivery in May 21, and officially laid out the optical module business. In 2021, the company’s optical module business had a net loss of 335 million yuan (including a net loss attributable to shareholders of listed companies of 234 million yuan); Anse group, a wholly-owned subsidiary of the company, has completed the 100% acquisition of Newport waferfab in Wales, UK, to further strengthen the layout of vehicle capacity of the company’s semiconductor business. In terms of strategic layout, the company extends from ODM system integration field to semiconductor field through M & A. In the future, the company will take semiconductor as the leader, increase investment, improve innovation ability, enable component and system integration, comprehensively improve the core competitiveness of complete machine products, and change the strategy from a service-oriented company to a product company.
Continue to increase investment in Semiconductor R & D and improve production capacity and product layout: the company’s semiconductor business product line focuses on transistors (including protective devices ESD / TVs, etc.), MOSFET power tubes, analog and logic ICs. In 2021, the company invested 837 million yuan in the R & D of semiconductor business, and further strengthened the R & D investment in medium and high voltage MOSFET, compound semiconductor products SiC and Gan products, IGBT and analog products: 1) in terms of compound semiconductor products, gallium nitride has launched silicon-based gallium nitride power device (ganfet), which has passed aecq certification test and achieved mass production, and has cooperated with industrial partners to complete the application of Gan in electric vehicle inverter Design of electric control, power supply and other schemes. The research and development of silicon carbide technology is also progressing smoothly, and the silicon carbide diode products have been sampled. 2) In terms of IGBT products, at present, the product streaming has been completed and is in the stage of test and verification. 3) New analog IC products are also in the process of accelerating research and development. 4) in terms of semiconductor capacity, the company continued to increase capital expenditure on Fabs in Manchester, UK and Hamburg, Germany. At present, most of the capacity of Fabs in Manchester and Hamburg has been locked by customer orders. In 2021, the company acquired Newport, a British wafer factory, to further improve the production capacity of vehicle specification products such as vehicle specification MOSFET, IGBT, analog and compound semiconductor. The Shanghai Lingang Holdings Co.Ltd(600848) 12 inch wafer factory built by major shareholders has completed the structural capping and is expected to release mass production capacity in 2023.
Integration business realizes diversified development of products and continuous introduction of customers: the company promotes the expansion of product integration business from consumption to industry, IOT and automotive electronics, further increases R & D investment in new customer expansion, and continues to launch new products in non mobile phone categories such as tablet, laptop, IOT, server and automotive electronics, laying a solid foundation for the long-term and steady growth of the company’s product integration business. The company’s optical module business mainly takes the holding subsidiary Zhuhai Delta Technology Co., Ltd. as the bearing platform. Its advanced sealing and testing technology capability, the development capability of some sealing and testing equipment and the ability to supply large customers of world-class mobile phone brands will promote the company to deeply cut into the optical track and open up the core links of the upstream industrial chain.
Investment strategy: we believe that Anson semiconductor is expected to further increase China’s share and achieve synergy with the help of Wentai’s platform. Considering the weak demand for consumer electronics and the impact of the rise in raw materials on the company’s ODM business, the company lowered its profit forecast for 22 / / 23 years and added a profit forecast for 24 years. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 4.060/54.49/6.940 billion yuan respectively (the original value in 22 / / 23 years is 4.973/6.383 billion yuan), and the corresponding PE is 18 / 14 / 11 times. Considering that the company’s valuation is still attractive, the company maintains the “recommended” rating.
Risk tips: 1) epidemic spread exceeds expectations: if the epidemic spread exceeds expectations in the future, it will have a great impact on the resumption of work of some companies and have a certain impact on industrial chain companies. 2) Risk of lower than expected growth in downstream application fields: when macroeconomic fluctuations occur, lower than expected growth in downstream application fields will have a certain impact on the company’s performance. 3) Risk of uncertain trend of Sino US trade friction: if the trade friction between China and the United States worsens further, it will have a certain impact on industrial chain companies.
