\u3000\u3000 Hangzhou Silan Microelectronics Co.Ltd(600460) (600460)
The annual performance of 2021 is expected to increase year-on-year, and the appreciation of financial assets leads to the increase of non recurring income
The company released the performance forecast, and it is expected to realize the net profit attributable to the parent company of RMB 1.518-1.531 billion in 2021, with a year-on-year increase of 2145% – 2165%. Due to the large appreciation of the equity value of Shanghai Anlogic Infotech Co.Ltd(688107) and visual core technology held by the company, the total net profit in 2021 is expected to increase by 586 million yuan. The company expects to realize a net profit of 912-926 million yuan after deducting non parent company in 2021, turning losses into profits year-on-year. Based on this calculation, the company achieved a net profit of 225-239 million yuan in 2021q4, turning losses into profits year-on-year and maintaining strong profitability. The company seizes the opportunity of high prosperity in the power semiconductor industry, actively expands production, and realizes the domestic substitution of products and the introduction of key customers. We raised the profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.522/15.47/1.949 billion (the original value is RMB 1.058/13.08/1.536 billion), the corresponding EPS will be RMB 1.07/1.09/1.38, and the current share price will be 46.2/45.4/36.1 times PE, maintaining the “buy” rating.
The high-end trend of the company’s products is obvious, and the customer structure continues to improve
The company maintains high-intensity R & D investment, relies on 8-inch and 12 inch production lines, continues to develop and iterate high-end item numbers, and improves the product matrix. In 2021, benefiting from the high economic development of the industry, the company’s products continued to make breakthroughs in high-end markets such as white power, communication, industry, photovoltaic and new energy vehicles. The revenue of power discrete devices such as power management chips, MEMS sensors, IPM, led and MOSFET / IGBT increased significantly, the product structure was optimized significantly, and the operating profit increased significantly. Among them, the company’s holding subsidiary Shilan Jixin 8-inch line basically maintained full production and achieved annual profit for the first time. The company’s holding subsidiary Shilan Mingxin LED production line achieved full production, also achieved annual profit and thickened the company’s performance.
The company’s 8-inch and 12 inch production lines are expanding, laying a foundation for rapid and high-quality development in 2022
The company announced in December 2021 that it plans to use the raised funds of 531 million yuan to increase the capital of its subsidiary Shilan Jixin for the phase II project of 8-inch production line. In addition, the company’s new annual production capacity of 240000 pieces and 12 inches is also being implemented. The company seized the opportunity of industry prosperity and actively carried out capacity construction, which not only expanded the production scale to meet the full demand of the market, but also provided space for the adjustment of the company’s product structure and laid a solid foundation for rapid and high-quality development in 2022.
Risk tip: industry competition intensifies and gross profit margin declines; Decline in industry demand; Production capacity construction was less than expected.
