Benefiting from the high prospect of the semiconductor industry, A-share IC silicon chip leader National Silicon Industry Group Co.Ltd(688126) (688126) expects that the company’s net profit is expected to exceed 100 million yuan in 2021, with a year-on-year increase of more than 70%, which will set a record high performance level; After deducting non net profit, the loss is expected to narrow further.
profit is expected to reach a record high
It is predicted that in National Silicon Industry Group Co.Ltd(688126) 2021, the net profit attributable to the owners of the parent company will reach 137 million yuan to 147 million yuan, an increase of 50 million yuan to 60 million yuan compared with the same period of last year, a year-on-year increase of 57.42% to 68.91%. Among them, the net profit after deduction is expected to lose 151 million yuan to 125 million yuan, a decrease of 46.32% to 55.59% year-on-year.
National Silicon Industry Group Co.Ltd(688126) said that the semiconductor market demand was strong in 2021. At the same time, the company’s production capacity was gradually released, and the company’s sales increased greatly, resulting in profit growth.
National Silicon Industry Group Co.Ltd(688126) is located in the upstream of the IC industry chain. Its main business is the R & D, production and sale of semiconductor silicon and other materials. It is one of the largest semiconductor wafer fabrication enterprises in Chinese mainland and is the first Chinese mainland to realize the large-scale production and sale of 300mm semiconductor wafer. Compared with the listed companies in the same industry, National Silicon Industry Group Co.Ltd(688126) focuses more on the production of semiconductor silicon wafers, and technically realizes the full coverage and large-scale sales of logic process and 3D storage process of 300mm silicon wafers of 14nm and above; Customers cover Semiconductor Manufacturing International Corporation(688981) , Wuhan Xinxin chip and other major chip manufacturers in China. However, it is worth noting that at present, 300mm silicon wafers have not officially contributed to the profits of listed companies.
In the first three quarters of 2021, National Silicon Industry Group Co.Ltd(688126) realized a net profit attributable to the shareholders of the listed company of about 100 million yuan and a net profit loss of about 100 million yuan after deducting non-profit; However, the net profit decreased significantly in the third quarter, with a loss of 4.63 million yuan. According to the company, with the increase of market demand, the company’s production capacity, especially the production capacity of 300mm semiconductor silicon wafer, has increased, resulting in a significant increase in sales; However, the net profit decreased compared with the same period last year due to the large income from changes in fair value brought by the company’s investment in Juyuan Xinxing Industrial Fund. As a strategic investor, Juyuan Xinxing subscribed for Semiconductor Manufacturing International Corporation(688981) shares listed on the science and innovation board. In 2020, it recognized the profit and loss of relevant fair value changes of 170 million yuan.
However, National Silicon Industry Group Co.Ltd(688126) made provision for the reduction of holdings of assets in the first three quarters of last year. It is estimated that the total amount of impairment provisions from January to September 2021 will be about 31.1107 million yuan. Among them, the provision for inventory falling price of inventory items is about 32.0185 million yuan, mainly because the company’s 300mm semiconductor silicon wafer is still in the stage of capacity climbing, the fixed cost is high, and the unit cost of inventory is still at a high level and higher than its net realizable value.
capacity expansion
According to the global silicon wafer shipment forecast report for the third quarter of 2021 released by semi silicon manufacturers group (SMG), the global silicon wafer shipment in the third quarter of last year increased by 16.4% compared with 3.135 billion square inches in the same period of last year. Global wafer, Japan Shin Etsu, Japan sumco and other international silicon chip leaders recently predicted that the supply of wafer products will continue to exceed the demand until 2023. Benefiting from the improvement of the prosperity of the semiconductor industry, the demand for semiconductor silicon wafers increased rapidly, National Silicon Industry Group Co.Ltd(688126) 200mm and below products (including SOI silicon wafers) capacity utilization continued to remain high, and the capacity utilization and shipment of 300mm silicon wafers also increased significantly.
According to the 2021 semi annual report, National Silicon Industry Group Co.Ltd(688126) 300mm large silicon wafers have been shipped more than 3 million pieces in history, and the production capacity has been climbing and increasing. Among them, the core subsidiary responsible for the production of large silicon wafers, Shanghai Xinsheng 300mm semiconductor silicon wafers, has reached 250000 pieces / month, and achieved the capacity target of 300000 pieces / month by the end of 2021.
When attending the industry summit last November, Dr. Qiu Ciyun, CEO of Shanghai Xinsheng Semiconductor Technology Co., Ltd., pointed out that with the continuous growth of the number of wafer factories, the demand for 12 inch silicon wafers increased rapidly. At present, the company’s customers are distributed in the Yangtze River Basin, the Bohai Sea region, the Pearl River Delta, Fujian and Taiwan. In addition to Chinese customers, it also includes customers from the United States, Europe, Southeast Asia and other countries and regions. The newly promoted whole customer base is expanding rapidly.
At the same time, National Silicon Industry Group Co.Ltd(688126) started a fixed increase of 5 billion yuan last year, and plans to issue no more than 744 million shares. One of the raised investment projects will invest 300mm high-end silicon wafers, and the planned capacity expansion will double to 600000 pieces / month. The authorization of the general meeting of shareholders of the fixed increase was originally planned to expire on January 27 this year, but the fixed increase was slow. On December 17 last year, the validity period of the fixed increase was approved to be extended for one year.
In terms of market performance, since May last year, National Silicon Industry Group Co.Ltd(688126) share price has risen rapidly, with a cumulative increase of more than 50% by August, but then the semiconductor sector fell, the company’s share price continued to decline, with a cumulative decrease of about 25%, and the latest closing price was 26.26 yuan / share.
In addition, National Silicon Industry Group Co.Ltd(688126) major shareholders have begun to reduce their holdings of Jiading development group, one of the original shareholders of the IPO and the fourth largest shareholder. From October to November last year, they reduced their holdings of 2.09 million shares through centralized bidding, accounting for 0.0844% of the total share capital of the company, lower than the upper limit of the planned reduction proportion, and cashed out a total of 61.33 million yuan.
