\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 73 Yangzhou Yangjie Electronic Technology Co.Ltd(300373) )
[key points of investment]
In 2021, the company’s revenue and net profit attributable to the parent company increased by 68% and 103% year-on-year. The company released the annual report of 2021. In the whole year, the company achieved a revenue of 4.4 billion yuan, a year-on-year increase of 68.0%, the net profit attributable to the parent was 770 million yuan, a year-on-year increase of 103.1%, the gross profit margin was 35.1%, a year-on-year increase of 0.8pct, the net profit attributable to the parent was 17.5%, a year-on-year increase of 3.0pct, in line with expectations.
In 2021, the increase of device sales will promote the increase of revenue, and the volume and price of silicon wafers will rise at the same time. In terms of products, the company’s semiconductor device revenue in 2021 was 3.52 billion yuan, a year-on-year increase of 60.8%, mainly driven by the growth of semiconductor device sales, which increased by 74.4% year-on-year to 30.33 billion. We expect that the semiconductor device revenue will continue to grow in 2022 with the prosperity of power semiconductor industry. The revenue of semiconductor chips in 2021 was 4.9 yuan, with a year-on-year increase of 23.9%, which was lower than the growth rate of the company’s overall revenue. The main reason is that the company’s wafer production capacity gives priority to self-use devices, and the self-use ratio may increase in 2021. In 2021, the revenue of semiconductor silicon wafer was RMB 330 million, with a year-on-year increase of 160.0%. The increase in revenue was mainly due to the rise in the volume and price of silicon wafer. The sales volume of silicon wafer was 29.525 million, with a year-on-year increase of 47.9%, and the sales price of silicon wafer was 11.2 yuan / piece, with a year-on-year increase of 75.8%. In 2021, the inventory of semiconductor silicon wafers was 2.7 million, with a year-on-year increase of 81.0%. The main factor was the expansion of Qingyang’s production capacity, the release of output and the increase of product stock.
The gross profit margin of chips and silicon wafers will improve in 2021. The gross profit margin of the company increased by 0.8pct to 35.1%, mainly due to the gross profit margin of semiconductor chips and semiconductor silicon wafers increased by 7.7 and 4.1pct to 39.9% and 34.47% respectively, and the gross profit margin of semiconductor devices was 33.9%, a slight decrease of 0.3pct year-on-year.
Based on R & D, it helps the company develop continuously. The company increased investment in R & D of new products and helped upgrade products. In terms of IGBT products, the trench1200vigbt chip on the 8-inch platform has completed the development work, and the corresponding IGBT module products have been put on the market in batches and received large orders. The company uses trenchfieldstop technology to reduce the saturation voltage drop and shutdown loss of devices, and launched 1200v40a and 650v50a / 75A series single tube products to start small batch delivery and production. In terms of MOSFET products, the company has completed the comprehensive optimization and upgrading of product design, manufacturing process and quality system, increased the R & D investment in high-voltage SJ products, and preliminarily completed the design, development and streaming of three series of products: 600V, 650V and 700V. Among them, the first SJ product of 650V has completed 1000 hour reliability verification and is undergoing application test verification. In terms of third-generation semiconductors, the company has successfully developed and launched SiC modules and a full range of 650V SiC SBD and 1200V SiC SBD products to the market, and SiC MOS has made key progress.
[investment suggestions]
Profit forecast. The company has formed core advantages such as technical advantages, industrial chain advantages, customer advantages, quality management advantages, marketing management advantages and large-scale supply. Driven by the policies of new infrastructure, carbon peak and carbon neutralization, 5g communication, new energy vehicles and photovoltaic energy storage have opened a high-speed growth mode to promote the rapid development of power semiconductor industry. We judge that the company will seize this opportunity and expand its business rapidly. We raised the profit forecast for 22-23 years and added a new 24-year profit forecast. It is estimated that the company’s revenue from 20222024 will be 6.01/76.8/9.22 billion yuan, the net profit attributable to the parent company will be 1.04/12.8/1.55 billion yuan, the EPS will be 2.03/2.49/3.03 yuan / share, and the PE corresponding to the current stock price will be 31.78/25.91/21.32 times, giving the company a “overweight” rating.
[risk tips]
IGBT and SiC technology breakthroughs were less than expected, capacity expansion was less than expected, and industry competition intensified.
