\u3000\u3000 China Resources Microelectronics Limited(688396) (688396)
Event:
The company issued the announcement of annual performance increase in 2021. It is estimated that the net profit attributable to the parent company in 2021 will be about 2.209 billion yuan – 2.233 billion yuan, with a year-on-year increase of 129% – 132%; The net profit attributable to the parent company after deducting non profits was about RMB 2.040 billion to RMB 2.065 billion, with a year-on-year increase of 129-132%.
Comments:
In the 21st year, Q4 maintained rapid growth and continued to consolidate China’s leading position in power semiconductors. In 2021, the net profit attributable to the parent company of Q4 was between 525 million yuan and 549 million yuan, with a year-on-year growth rate of about 89.49% – 98.24%, still maintaining a high-speed growth trend. In 2021, the company had sufficient orders and high capacity utilization. Relying on the advantages of IDM model to ensure product supply capacity, the company’s revenue and gross profit margin increased significantly compared with that in 2020.
Sicmosfet actively introduces customers, and vehicle specification level power products are gradually mass produced
Silicon carbide (SIC) is a wide band gap material. Compared with silicon, it has higher working temperature, better heat dissipation performance and lower switching and conduction losses. It has a wide application prospect in the power field. The company has timely laid out SiC technology and made continuous breakthroughs in various production lines. The yield of SiC products has reached more than 90%. Sicmosfet is actively introducing customers and is expected to form mass production and sales in 2022. Through long-term industrial accumulation and IDM production advantages, the company has established a good relationship with Chinese automobile manufacturers, achieved breakthrough progress in vehicle specification products, and some products have reached large-scale sales. At the same time, the company is also promoting vehicle specification verification of other series of products.
Earnings forecast, valuation and rating
It is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 9.212/107.13/12.56 billion respectively, with a year-on-year increase of 32.03% / 16.29% / 17.24%; Considering the rapid mass production progress of the company’s IGBT and SiC series cutting-edge products, the forecast of net profit attributable to the parent company was raised to RMB 2.213/2.614/3.006 billion respectively, with a year-on-year increase of 129.67% / 18.12% / 14.97%. The corresponding PE is 35 / 29 / 26 times respectively. Considering the company’s dominant position in the field of power semiconductors, 42 times PE is given, the target price is 70.42 yuan, and the “buy” rating is maintained.
Risk tips
Downstream demand is less than expected, capacity expansion is less than expected, future industry overcapacity and other risks.
