\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 20 Sichuan Injet Electric Co.Ltd(300820) )
Event: Sichuan Injet Electric Co.Ltd(300820) released the 2021 annual report, which showed that the company achieved an operating revenue of 660 million in 2021, with a year-on-year increase of 56.87%, and a net profit attributable to the parent company of 157 million, with a year-on-year increase of 50.60%. The first quarter report of 2022 released by the company in the same period shows that in the first quarter of 2022, the operating revenue was 202 million, with a year-on-year increase of 78.24%, and the net profit attributable to the parent was 54 million, with a year-on-year increase of 90.47%.
The pioneer of power control industry has deeply benefited from the growth opportunities of photovoltaic market. The company is mainly engaged in the R & D, production and sales of high-end industrial power supply equipment. Since entering the industry in 2005, the company has broken the foreign monopoly and successfully achieved import substitution in photovoltaic and other fields. After years of deep cultivation, the company’s power supply business is in a leading position in the product competitiveness and market influence of the photovoltaic industry, and the market share remains above 70% all year round. Benefiting from the dual carbon strategy and the vigorous development of the photovoltaic market, the company’s orders for photovoltaic power products continue to grow, laying a solid foundation for the company’s performance growth.
Semiconductor self-control is the general trend, and equipment parts have great prospects. In recent years, the United States has increased its blockade of China’s science and technology layer by layer, and a consensus has been reached that the core technology is independently controllable in the upstream and downstream of the semiconductor industry chain. Taking semiconductor plasma etching equipment, film deposition equipment and ion implantation equipment as examples, RF power supply, as one of the most core parts, has been monopolized by foreign countries for a long time. Without the localization of key basic parts, the independent control of the semiconductor industry is like a tree without roots and water without power Sichuan Injet Electric Co.Ltd(300820) has become the DC power supplier of Advanced Micro-Fabrication Equipment Inc.China(688012) mocvd equipment, and is developing RF power products supporting high-end etching equipment. With the advancement of semiconductor localization process and the company’s increasing R & D investment in high-end power supply, semiconductor power supply is expected to become the company’s next powerful growth engine.
The market potential of charging pile is considerable, and its growth potential can not be underestimated. With the rapid development of the new energy vehicle industry, the supporting charging pile market is also expected to usher in opportunities. According to the statistics of China electric charging infrastructure promotion alliance, by the end of 2021, its member units had reported a total of 1147000 public charging piles, with a year-on-year increase of 65%, including 470000 DC charging piles and 677000 AC charging piles. It is expected that 543000 public charging piles will be added in 2022. Sichuan Weiyu electric, a wholly-owned subsidiary of the company, has obtained more than 30 authorized patents related to charging piles, and has achieved rapid growth in contract orders both at home and abroad, which is expected to benefit from the promising new energy vehicle charging pile market.
Profit forecast and investment rating: give buy rating. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 287 million, RMB 423 million and RMB 552 million. The current market value corresponding to PE is 22.38, 15.17 and 11.64 times respectively, giving the company a buy rating.
Risk tips:
1) the epidemic spread exceeded expectations; 2) The market demand of photovoltaic industry is less than expected; 3) The R & D of new semiconductor products is less than expected; 4) Business expansion was less than expected.
