\u3000\u3 Guocheng Mining Co.Ltd(000688) 396 China Resources Microelectronics Limited(688396) )
Events
China Resources Microelectronics Limited(688396) released the annual report of 2021 and the first quarterly report of 2022: in 2021, the operating revenue was 9.249 billion yuan, a year-on-year increase of 32.56%, the net profit attributable to the parent was 2.268 billion yuan, a year-on-year increase of 135.34%, and the net profit attributable to the parent after deduction was 2.099 billion yuan, a year-on-year increase of 145.98%; In 2022, Q1 achieved an operating revenue of 2.514 billion yuan, a year-on-year increase of 22.94%, a net profit attributable to the parent company of 619 million yuan, a year-on-year increase of 54.88%, and a net profit attributable to the parent company of 600 million yuan after deduction, a year-on-year increase of 62%.
Key investment points
Products and OEM grew together, and the gross profit margin of power devices increased
In 2021, the company’s main business, the integrated circuit industry, achieved a revenue of 9.158 billion yuan (year-on-year + 32.12%), and the products and solutions and manufacturing and services achieved a revenue of 4.357 billion yuan (year-on-year + 40.37%) and 4.801 billion yuan (year-on-year + 25.43%) respectively. In terms of subdivided products, MOS revenue increased by 33% year-on-year, IGBT revenue increased by 57%, drive and MCU product lines increased by 95% year-on-year, and smart grid and AC-DC product lines increased by 1033% year-on-year; In terms of gross profit margin, in 2021, the overall gross profit margin of the company was 35.33% (year-on-year + 7.86pct), the gross profit margin of products and solutions / manufacturing and services were 37.43% (year-on-year + 6.57pct) / 33.56% (year-on-year + 9pct), and the gross profit margin of power device business increased by 12pct year-on-year; In terms of period expenses, the expense rate (excluding R & D) in 2021 was 4.67% (year-on-year -0.43pct), including sales expense rate of 1.42% (year-on-year -0.1pct), management expense rate of 4.77% (year-on-year -0.53pct) and financial expense rate of – 1.52% (year-on-year + 0.2pct). In addition, in 2021, the company’s R & D investment reached 713 million yuan (year-on-year + 25.99%), and the R & D expense rate was 7.71%.
The product iteration of the largest MOS manufacturer in China is progressing smoothly
According to omdia data, in 2021, according to sales statistics, the company ranked third in China’s MOSFET market, second only to Infineon and Ansenmei. It is the largest MOSFET manufacturer in China.
In 2021, the company’s product lines iterated smoothly. In terms of SiC, the comprehensive performance of the second generation 650vsicjbs independently developed reached the advanced level in the industry, and a variety of products were mass produced; The independently developed planar 1200vsicmos has entered the risk mass production stage, and the static technical parameters have reached the level of foreign benchmarking samples; In terms of MOS, the self-developed new generation of high-performance medium and low-voltage power MOS has achieved key core technology breakthroughs, the device performance has reached the international advanced level of benchmarking products, and mass production has been realized through the one-time identification of the company’s core customers; In terms of IGBT, the manufacturing technology has been comprehensively improved to 8 inches, 1200v40afs-igbt has achieved mass production in the industrial field, the technical parameters of the new generation of 650v40afs-igbt samples have reached the level of foreign benchmarking products, and customers have good evaluation. IGBT modules have been introduced to the market, and actively expand the application fields of UPS, Cecep Solar Energy Co.Ltd(000591) inverter, frequency converter, automotive electronics and so on; In terms of IC, the second-generation bus Internet of things chip has been launched, and the overall performance has reached the leading level in China. The monolithic intelligent power IC developed by using the company’s unique 500vsoi-bci high-voltage process technology platform in China has been sent to customers for confirmation, which has a good market application prospect.
Launch BCD process technology of vehicle specification level, and complete the 12 inch production line before the end of the year
In 2021, the company continued to upgrade its BCD process technology, and newly launched 0.18 micron medium and high voltage vehicle gauge BCD process technology. At the same time, the technical performance of 0.11 micron BCD technology platform reached the standard and was recognized by mainstream customers.
At present, the company has a 6-inch wafer manufacturing capacity of about 230000 pieces / month and an 8-inch wafer manufacturing capacity of about 130000 pieces / month. The 12 inch power semiconductor wafer production line invested and constructed by Runxi microelectronics, jointly initiated by Huawei holdings, a wholly-owned subsidiary of the company, big fund phase II and Chongqing Xiyong, is expected to be completed by the end of 2022. After completion, it is expected to form a production capacity of 30000 pieces of 12 inch medium and high-end power semiconductor wafers per month, and support the construction of 12 inch epitaxial and wafer process capacity. In addition, the company actively promotes the construction of power semiconductor sealing and testing base, and plans to complete the production line by the end of 2022 and further code products such as power modules.
Profit forecast
It is predicted that the revenue of the company from 2022 to 2024 will be RMB 11.517 billion, RMB 13.872 billion and RMB 16.469 billion respectively, and the EPS will be RMB 2.05, 2.41 and 2.80 respectively. The corresponding PE of the current stock price will be 23, 20 and 17 times respectively, and the “recommended” investment rating will be given.
Risk tips
The downside risk of industry prosperity, the risk that the progress of new products is less than expected, the risk that the progress of production line construction and capacity climbing is less than expected, the risk of intensified industry competition, the risk of overseas policy changes, etc.
