\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
Matters:
The company released the first quarterly report of 2022, realizing an operating revenue of 542 million yuan, a year-on-year increase of 66.96%, and a net profit attributable to shareholders of listed companies of 151 million yuan, a year-on-year increase of 101.54%.
Ping An View:
The performance met expectations and the company maintained rapid growth in 22q1: in the first quarter of 2022, the company achieved an operating revenue of 542 million yuan (+ 66.96% YoY, + 6.27% QoQ) and a net profit attributable to shareholders of listed companies of 151 million yuan (+ 101.54% YoY, + 14.39% QoQ). In 2022q1, the gross profit margin of the company maintained a record high of 40.81%, and the net profit margin reached a record high of 27.88% (+ 4.78pctyoy). The company continues to take root in the power semiconductor industry represented by IGBT, continues to increase investment in technology and product R & D, deeply plough the existing market, constantly explore new markets, continuously improve market share, and actively promote the stable and sustainable development of the company. The company continued to increase the layout of emerging industries, focusing on key industries such as new energy vehicles, new energy power generation, energy storage and frequency conversion white appliances, and launched products with international competitiveness in manufacturing process, electrical performance, power consumption, reliability, price, quality and technical support, realizing a good growth in business scale and profitability.
Continue to develop the new energy vehicle and new energy power generation market and grasp the localization opportunities of core devices: the company continues to develop the semiconductor device market of new energy vehicles and fuel vehicles, provides customers with vehicle specification IGBT modules in the field of drive controllers for new energy vehicles, and improves the product layout of auxiliary drive and vehicle power supply market. In 2021, the company’s vehicle specification level IGBT module for main control has been equipped with more than Shanghai Pudong Development Bank Co.Ltd(600000) new energy vehicles in total, and the model supply structure has been optimized. The supporting proportion of class A and above models has reached 25%, which is expected to be further increased in 22 years. At the same time, the company provides customers with vehicle semiconductor devices such as vehicle air conditioner, charging pile and electronic power steering, and vehicle specification sgtmosfet has also begun to supply in small quantities. The company’s 650V / 750V vehicle specification level IGBT module has added multiple main control platform points of dual electronic control hybrid and pure electric vehicle type, and 1200V vehicle specification level IGBT module has added multiple main control project points of 800V system pure electric vehicle type. At the same time, the vehicle specification level IGBT chip based on the seventh generation micro trench trenchfieldstop technology is expected to start mass supply in 2022, which will promote the continuous and strong growth of the company’s new energy vehicle business. At the same time, the company seizes the historical opportunity of the rapid development of photovoltaic power generation, wind power generation and energy storage market, and seizes the market opportunity of accelerating the localization of core semiconductor devices. The modules and discrete devices of IGBT and FRD chips are installed and applied in large quantities in China’s mainstream photovoltaic inverter customers. It is expected that the market share will continue to increase in 2022.
SiC chips are overweight and occupy the commanding height of wide band gap power semiconductor devices: in recent years, SiC power devices have been driven by the demand of downstream new energy vehicles and other industries, and the market scale has grown rapidly. The company continued to layout wide band gap power semiconductor devices, and further promoted and applied various SiC modules launched in locomotive traction auxiliary power supply system, new energy vehicle controller and photovoltaic industry. In the field of new energy vehicles, the company has added several main motor controller projects of 800V system using all sicmosfet modules, which will provide a continuous driving force for the company’s future SiC module sales growth. In 2022, the company will develop more vehicle specification SiC power modules that meet the market demand. At the same time, with the promotion of the SiC chip R & D and industrialization project with a fixed increase of RMB 500 million, the company will continue to increase R & D investment and launch self-developed vehicle specification SiC chips that meet the market demand, so as to further grasp the market opportunity of new energy vehicles and rapidly expand the corresponding market share.
Investment suggestion: the company is the only leading enterprise in China’s IGBT field that ranks among the top ten in the global IGBT module market. It has the first mover advantage and has been highly recognized by industry customers in terms of brand, technology, product quality and reliability. Under the background of shortage in the industry, downstream customers have increasingly strong demand for localization of core devices, and the progress of product introduction of Chinese manufacturers has been accelerated. With the continuous development of the company in new energy vehicles, photovoltaic wind power and other industries, the proportion of the company’s new energy business will continue to increase. In the future, the company will continue to benefit from the double dividends of industry growth and domestic substitution and enter the fast lane of growth. We maintain the company’s profit expectation. It is estimated that the company’s net profit from 2022 to 2024 will be 592 million yuan, 842 million yuan and 1113 million yuan respectively, and the EPS will be 347 yuan, 494 yuan and 653 yuan respectively. The corresponding PE on April 27 will be 95.3x, 66.9x and 50.6x respectively, maintaining the company’s “recommended” rating.
Risk tips: (1) downside risk of industry prosperity: the company’s performance is closely related to the prosperity of semiconductor power discrete device industry, so it will be affected by macroeconomic fluctuations. If the macroeconomic downturn or downstream demand is less than expected, the company’s revenue and profit growth may be adversely affected; (2) Risk of intensified market competition: IGBT is a power semiconductor device with high technical threshold. Once the company’s technical level, the speed of product renewal and iteration, and the quality of products and services are reduced, it may be robbed of market share by competitors; (3) Risk of insufficient production capacity: at present, the company still focuses on fabless mode, and the iteration speed of product R & D and design is fast. However, if the production capacity of the company’s main suppliers is seriously strained or the relationship between the two sides deteriorates, the company’s supply and customer expansion may be affected, and the performance may be adversely affected.
