\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 73 Yangzhou Yangjie Electronic Technology Co.Ltd(300373) )
Core view
Benefiting from the lack of core and the outbreak of downstream demand, traditional product lines work together with new products such as IGBT. In 2021, the company realized a revenue of 4.397 billion yuan, a year-on-year increase of + 68.00%; The net profit attributable to the parent company was 768 million yuan, a year-on-year increase of + 103.06%. Among them, the income of semiconductor devices was 3.518 billion yuan, a year-on-year increase of + 70.82%; The revenue of semiconductor chips was 494 million yuan, a year-on-year increase of + 23.94%; The revenue of semiconductor silicon wafer was 332 million yuan, a year-on-year increase of + 159.98%. In 2021, the company’s medium and high-end new product lines achieved brilliant results, and the revenue of MOSFET, small signal, IGBT and module products increased by + 130%, + 82%, + 500% and + 35% respectively year-on-year.
The gross profit margin remained stable and the net profit margin increased significantly. In 2021, the company’s gross profit margin was 35.12%, with a year-on-year increase of + 0.84pct; The net interest rate was 18.77%, with a year-on-year increase of + 4.18pct. In 2021, the company smoothly transmitted the price rise of raw materials from the upstream to the downstream, and the gross profit margin was relatively stable compared with the same period of last year. Benefiting from the scale effect and lean management, the company’s expense rate decreased during the period. In 2021, the company’s management expense rate, sales expense rate, R & D expense rate and financial expense rate were 5.18%, 3.33%, 5.50% and – 0.11% respectively, with a year-on-year increase of -1.2pct, -0.18pct, + 0.49pct and -0.91pct respectively.
Continuously high R & D investment, and help high-end products to accelerate the landing. In 2021, the company’s R & D expenses were 242 million yuan, a year-on-year increase of + 84.46%. In 2021, the company completed the serial development of 1200V IGBT chips, and IGBT modules received a large number of orders; 1200V 40A and 650v50a / 75aigbt single tubes used in clean energy market have been produced and delivered in small quantities. In terms of high-voltage sjmos, the company has preliminarily completed the design, development and streaming of three series of 600V / 650V / 700V products. In addition, 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.
We are optimistic about the expansion of the company’s traditional power devices, IGBT, SiC and other new products in the field of new energy and automobile. The company started with trade, and in recent years, it has implemented the strategy of centralizing large customers, and has a good direct sales channel for the leading customers in the downstream industry. With the vigorous development of downstream such as photovoltaic and new energy vehicles, the company’s IGBT, SiC and medium and high-end MOS products are expected to accelerate the introduction. Looking forward to 2022, the company will vigorously expand industrial electronics fields such as industrial frequency conversion, automation and Netcom, focus on high-end markets such as 5g communication, automotive electronics, security and photovoltaic micro inverter, and explore new profit growth points of the company.
Profit forecast: we expect the net profit attributable to the parent company in 2022, 2023 and 2024 to be RMB 1.145/15.63/2.121 billion respectively, corresponding to 29 / 21 / 16 times of the share price PE on April 22, maintaining the “buy” rating.
Risk tip: downstream demand slows down, product R & D and verification are less than expected, and production capacity is less than expected.
