\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 23 Jiangsu Jiejie Microelectronics Co.Ltd(300623) )
Events
Jiangsu Jiejie Microelectronics Co.Ltd(300623) released the performance report for the first quarter of 2022: the company achieved an operating revenue of 374 million yuan in the first quarter of 2022, with a year-on-year increase of 2.46%, and a net profit attributable to the parent company of 100 million yuan, with a year-on-year increase of 0.08%.
Key investment points
The performance is in line with expectations, and the profit of power devices is accelerated
According to the company’s performance report for the first quarter of 2022, the company achieved an operating revenue of 374 million yuan in Q1 of 2021, with a year-on-year increase of 2.46%. In terms of profitability, the gross profit margin of the company in the first quarter was 49.89% (year-on-year + 0.47pct) and the net profit margin was 26.66% (year-on-year -0.53pct). In terms of period expenses, in the first quarter of 2022, the company achieved sales, management and financial expense rates of 2.33%, 18.63% and 1.39% respectively. The sales expense rate decreased slightly, while the management and financial expense rate increased. In terms of R & D expenses, the company continued to increase R & D investment to improve the core competitiveness of products and meet customer needs. In the first quarter of 2022, the company’s R & D expenses were 38.35 million yuan, a year-on-year increase of 46.07%.
The rapid rise of MOSFET business benefits from the power boom cycle
The company’s main business is IDM, supplemented by fabless + sealing and testing. The products mainly include thyristors, protective devices, SiC devices and MOSFETs. Among them, the company’s thyristor series products, diodes and protection products adopt the IDM business mode, and the company’s MOS business adopts the fabless + sealing and testing mode, in which all chips (mainly 8 inches) are outsourced, with self supply in sealing and testing supplemented by outsourcing. Power semiconductors benefit from the continuous growth of new energy. According to the yole development report, the market scale of power semiconductors is expected to reach US $26.2 billion in 2026, with a compound annual growth rate of 6.9%. In 2021, the company’s revenue of power semiconductor chips will reach 306 million yuan, accounting for 17.28%, and that of power semiconductor devices will reach 1.429 billion yuan, accounting for 80.60%. Among them, MOS business accounts for 29.57% of its main business, which is expected to be significantly improved in the future. The company’s products cover five sectors: industrial control, medical treatment, communication, consumption and automobile. It is positioned as a leading enterprise in the subdivided field. The company has been recognized by well-known foreign manufacturers. The company’s products have been exported to countries or regions with relatively developed semiconductor discrete device technology, such as South Korea, Japan, Spain and Taiwan, and the export volume has increased year by year. The rising trend of medium and high-end products produced by the company replacing imports and foreign exports has broken the situation that the market segment of China’s power semiconductor discrete devices is restrained by foreign technology. Thirteen vehicle specification level power MOSFETs launched by the company strictly follow iatf16949 quality management system and aec-q101 reliability verification standard. Some products have been used in new energy vehicles. This year, new vehicle specification level products will be launched into the market.
The category continued to expand, and the layout of vehicle specification level power semiconductor packaging and testing helped new growth
1) the company’s Nantong “high-end power semiconductor device industrialization project” supports Wuxi and Shanghai MOSFET teams. At present, the project (phase I) is in the final stage of infrastructure and supporting construction. It is planned to start trial production in the third quarter of this year. The project will help promote the development of high-end power semiconductors and expand market share, with an estimated annual income of 120 million yuan. 2) The construction project of “power semiconductor 6-inch wafer and device sealing and testing production line” of jiejie semiconductor, a wholly-owned subsidiary of the company, will not only expand the production capacity of existing protective devices, but also build more high-end diode and IGBT small signal modules. The project has been started and is planned to be completed next year. After the project is completed, it is expected to form the industrialization capacity of 6-inch wafer 1 million pieces / year and 10 billion pieces / year power semiconductor sealing and testing devices, The annual income is expected to be 530 million yuan. 3) After the completion of the company’s power semiconductor “vehicle specification level” sealed test industrialization project, it can reach the annual production capacity of 1900kk vehicle specification level high-power device DFN series products, 120kk vehicle specification level high-power device toll series products, 90kk vehicle specification level high-power device lfpack series products and 60kkwcsp power device products. After the project is completed, it is expected to form a sales scale of 2 billion. At present, it has been started and is expected to reach production in two years. 4) The company has set up a holding subsidiary Jiangsu Yisi Technology Co., Ltd. (fabless mode), which plans to invest in the industrialization projects of new power devices such as IGBT. At present, the work is being actively promoted, and it is expected to form a certain sales this year. 5) The company signed a cooperation framework with Shaoxing SMIC integrated circuit Co., Ltd. in December 2021. Based on the principle of complementary advantages and common development, the company cooperated in the fields of medium and low voltage sgtmosfet, high voltage IGBT and sjmosfet wafers, which was conducive to promoting the process of the company’s productization and played a positive role in the company’s performance in the future.
Profit forecast
Benefiting from the continuous high growth of the power semiconductor business and the improvement of the gross profit margin of the comprehensive transformation IDM model, it is predicted that the revenue of the company from 2022 to 2024 will be RMB 2.522 billion, RMB 3.195 billion and RMB 3.831 billion respectively, and the EPS will be RMB 0.90, 1.10 and 1.30 respectively. The current share price corresponds to 23, 19 and 16 times of PE respectively, giving the “recommended” investment rating.
Risk tips
Downstream industry prosperity downside risk, product R & D progress less than expected risk, production capacity construction progress less than expected risk, industry competition intensified risk, overseas policy change risk, etc.
