\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 745 Wingtech Technology Co.Ltd(600745) )
Event comments
On April 25, Wingtech Technology Co.Ltd(600745) released the annual report of 2021 and the performance report of the first quarter of 2022. In 2021, the company achieved revenue / net profit attributable to parent company / net profit deducted from non parent company of 52.729 billion yuan / 2.612 billion yuan / 2.201 billion yuan respectively, with a year-on-year increase of 1.98% / 8.12% / 4.17% respectively. Among them, the revenue from product integration business was 38.685 billion yuan, a year-on-year decrease of 7.16%, and the revenue from semiconductor business was 13.803 billion yuan, a year-on-year increase of 39.54%. In the first quarter of 2022, the company’s operating revenue was 14.803 billion yuan, a year-on-year increase of 23.44%, and the net profit attributable to the parent company was 503 million yuan, a year-on-year decrease of 22.87%.
The global market share of semiconductor business has further increased, opening up a new field of analog chips. According to the research data of xinmou, in 2021, the scale of the company jumped to the 6th place in the global power discrete device semiconductor company. The company actively optimizes the product structure, arranges high gross profit products, and expands the production capacity and item number of logic, simulation, power MOS and other products. The overall market share of the company is expected to further expand. At present, the company’s IGBT film is successful, and all parameters meet the design requirements; Dallas design center was launched, which focuses on the development of analog signal conversion and power management IC.
The field of product integration business expanded to non mobile phone business, and the smart home project was officially mass produced. The company actively promotes the expansion of products from the consumer field to non mobile phone fields such as industry, aiot and automotive electronics, and continues to launch new products, laying the foundation for the steady growth of the company’s product integration business. At present, the company has carried out computer, smart home and other business cooperation with specific overseas customers and signed cooperation agreements, and the smart home project has officially started mass production and realized normal shipment. The total amount of project cooperation is expected to be about 5 billion yuan.
The optical module business accelerated verification and resumed supply, and the delta photoelectric intelligent manufacturing project is expected to be put into operation in the third quarter. The company’s optical module business is scarce in the field of camera modules, with advanced sealing and testing technology capability and the development capability of some sealing and testing equipment. At present, the company’s Delta photoelectric intelligent manufacturing project has been officially capped and lasted nearly 115 days. It is expected to be put into operation in the third quarter, laying a capacity foundation for the development of delta technology business.
Investment advice
In the future, the company will focus on semiconductor business, increase investment and improve innovation ability. On the one hand, the company will continue to optimize the stock product structure and increase the supporting capacity resources. On the other hand, the company will support the further technological transformation and expansion of existing capacity, implement the process of Newport wafer factory to IDM, and promote the construction of Shanghai Lingang Holdings Co.Ltd(600848) wafer factory. The company’s semiconductor business capacity and technology are expected to achieve a rapid breakthrough. In the future, semiconductor, product integration and optical module businesses will continue to integrate and develop in coordination with each other. The company is expected to become a technology product company led by semiconductor business. We estimate that the operating revenue of the company from 2022 to 2024 will be 70.871/90.83/110233 billion yuan respectively, with a year-on-year increase of 34.41% / 27.11% / 22.37% respectively. The net profit attributable to the parent company was RMB 3.992/53.27/6.790 billion respectively, with a year-on-year increase of 52.84% / 33.46% / 27.46% respectively. EPS is 3.20/4.27/5.45 yuan respectively. Based on the stock price on April 26, 2022, the corresponding PE is 19 / 14 / 11 times respectively, maintaining the “recommended” rating.
Risk tips
The prosperity of semiconductor industry is lower than expected; The progress of M & A and integration of semiconductor business is less than expected; The smartphone market is less than expected; The penetration rate of new energy vehicles is lower than expected.
