\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 745 Wingtech Technology Co.Ltd(600745) )
Announcement summary: the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 52.729 billion yuan, a year-on-year increase of 1.98%, a net profit attributable to the parent of 2.612 billion yuan, a year-on-year increase of 8.12%, and a net profit not attributable to the parent of 2.201 billion yuan, a year-on-year increase of 4.17%. The net profit attributable to the parent company in the first quarter was RMB 14.85 billion, a year-on-year decrease of RMB 14.85%, with a net profit attributable to the parent company of RMB 4.203 billion and a year-on-year decrease of RMB 2.35%.
Semiconductor business continued to grow at a high rate, Q1 operating profit grew steadily, and non recurring profit and loss changes affected performance. The business scale of the company continued to grow, and the revenue of 21q4 / 22q1 was 14.083 billion yuan / 14.803 billion yuan respectively, with a year-on-year increase of + 5.36% / + 23.44% respectively. The revenue in a single quarter continued to reach a new high. The net profit attributable to the parent company in 21q4 / 22q1 was 570 million yuan / 503 million yuan respectively, with a year-on-year increase of + 264% / – 22.87% respectively. The year-on-year decrease in 22q1 was mainly due to the change of fair value caused by the fluctuation of stock price. Excluding this part, the net profit attributable to the parent company in 22q1 was about 774 million yuan. In terms of business, in 2021, the company’s semiconductor business / product integration business achieved revenue of RMB 13.803 billion / 38.685 billion respectively, with a year-on-year increase of + 39.54% / – 7.16%, gross profit margin of 37.17% / 8.71% and net profit of RMB 2.632 billion / 184 million respectively, of which the net profit of semiconductor business increased by 166.31% year-on-year. In 2022q1, the semiconductor business / product integration achieved a revenue of 3.697 billion yuan / 10.334 billion yuan respectively, with a year-on-year increase of + 9.62% / + 20.03%. The semiconductor business maintained growth month on month, with a gross profit margin of 42.94% / 9.44% respectively, an increase over the whole year of 2021, and a net profit of 854 million / – 40 million yuan respectively. In terms of expenses, the ratio of management / R & D expenses in 2021 was 3.84% / 5.1% respectively. The R & D investment was 3.7 billion, accounting for 7.02%, of which 1.011 billion was capitalized, and the ratio of 22q1 management / R & D expenses was 3.5% / 5.4% respectively. The increase in expenses was mainly due to the company’s increased R & D investment, the expansion of new product team, and the increase in incentive expenses and convertible bond interest expenses.
Vehicle scale power semiconductors maintain a high outlook, orderly expansion of production capacity + large-scale new products drive long-term growth. Ansteel ranks first in power semiconductors in China. In 2021, the revenue of automobile, mobile and wearable equipment, industry and power, computer equipment and consumption accounted for 44% / 23% / 23% / 5% / 5% respectively. As the world’s leading manufacturer of automotive power semiconductors, the integrated management of the company and anser is progressing smoothly, and the profitability of 2020q3 has been rapidly improved. With the rapid growth of global EV shipments, the supply of the industry continues to be tight. Anse products have been widely used in drive system, power supply system, electronic control system, intelligent cockpit system and other systems. The number of particles in electric vehicles is expected to increase several times, and the market space is further improved. Ansteel increased capital expenditure, carried out technological transformation and production expansion of semiconductor business, optimized product structure, and increased the proportion of shipments of high margin products such as logic, simulation and power MOSFET. In the short term, Aetna will strengthen the technological transformation and expansion of capacity in Hamburg and Manchester. The acquisition of Newport has started the gradual switch of its wafer capacity to IDM’s own capacity, and increased the promotion of outsourcing capacity. The Shanghai Lingang Holdings Co.Ltd(600848) 12 inch wafer factory invested by major shareholders has been capped and is expected to release batch production capacity in 2023. In terms of new products, the company invested 837 million yuan in the R & D of semiconductor business in 2021, further strengthening the R & D investment in medium and high voltage MOSFET, SiC and Gan products, IGBT and analog products. The combination of capacity release, product structure optimization and large volume of new products is expected to weaken the impact of price fluctuations and help Anse grow rapidly in the long term.
Optical business losses narrowed, creating an intelligent hardware integration platform. The impact of the upstream price rise has gradually slowed down, and the company’s ODM business has begun to diversify, expanding from traditional mobile phone ODM to tablet, laptop, aiot, server, automotive electronics and other fields, increasing investment in the field of laptop, launching a number of self-developed products in the field of server, and winning the server projects of many well-known customers. The server business is expected to become a new profit growth point. Most other projects are expected to be listed in batches from 2022. The company strengthens business cooperation, promotes its own supply capacity in the semiconductor field and component field, makes full use of the IDM platform capacity of semiconductor business, improves product synergy, and promotes the integration and innovation of semiconductor technology in wafer level packaging such as SIP, mini / microled and automotive electronics. The company has launched 5g RF SIP module, TWS motherboard module, watch board module and other SIP packaging products, Promote the expansion of product integration business from consumption to industry, IOT, automotive electronics and other fields, and form an ecological platform for intelligent hardware industry. ANSYS system level sealing and testing capability will greatly extend the value chain by combining SIP capability with Wentai’s leading SMT, system integration design and customer base. The company completed the acquisition of delta technology in June 2021, cut into the field of optical module business, and started the supply of dual camera products in November. The impact of 2021 and 22q1 on the consolidated statements was – 234 million yuan / – 27 million yuan. With the improvement of capacity utilization of optical modules and the development of new customers, the operation of optical business is expected to continue to improve.
Investment suggestion: the company is a leading enterprise in power semiconductor and ODM business. The semiconductor business continues to expand its production capacity and product matrix, and the ODM business profit gradually recovers, expanding from the consumer field to industry, IOT, automotive electronics and other fields, so as to build an ecological platform for intelligent hardware industry. Optical module business accelerated verification and resumed supply. Considering that the new business is still in the introduction period, we adjust the profit forecast. It is estimated that the parent company’s profit from 2022 to 2024 will be 4.084 billion yuan / 5.311 billion yuan / 6.461 billion yuan (the original forecast for 22-23 years is 5.135 billion yuan / 6.452 billion yuan), and the corresponding EPS will be 3.28, 4.26 and 5.18 yuan respectively, maintaining the buy rating.
Risk tips: the risk of underlying asset integration, the risk that the volume of 5g smart phones and smart terminals is less than expected, the risk of semiconductor demand decline, market systemic risk, and the risk of continuous upstream price rise
