\u3000\u3000 China Resources Microelectronics Limited(688396) (688396)
Event: on January 20, the company released the performance forecast for 2021. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be 2208.5901 million yuan – 2232.8101 million yuan, an increase of 1244.9285 million yuan – 1269.1485 million yuan compared with the same period of last year, an increase of 129% to 132% year-on-year. The net profit after deducting non recurring profit and loss is 2040284400 yuan – 2064504400 yuan, which will increase by 1187136700 yuan – 1211356700 yuan compared with the same period of last year, with a year-on-year increase of 139% to 142%.
China’s leading power semiconductor enterprise, the downstream demand and price rise together, and the company’s orders are full. According to the performance forecast of 2021, the company received full orders, the overall capacity utilization rate was high, the overall performance was significantly better than that of the same period last year, and the operating revenue and gross profit margin increased year-on-year. The company’s 2021 semi annual report disclosed that the company’s intelligent power module packaging is in full production; Two customers of automotive electronic products introduced in the early stage of industry and automotive electronics have gradually increased their volume; The panel level advanced packaging technology has made a breakthrough. 43 well-known semiconductor customers at home and abroad have been imported and several product verifications have been completed. Six customers have achieved small batch production and three customers have achieved mass production. The power conductor has benefited from the strong demand pull from downstream, especially the continuous expansion of the scale of the automotive electronics market, the impact of the supply side epidemic on the production capacity of many overseas wafer factories, the superposition of strong terminal demand and domestic alternative demand, the global wafer production capacity has an imbalance between supply and demand, and its main products are concentrated in 8-inch wafers with slow expansion, It is mainly reflected in the increase of delivery time and the price rise of some standard products. The company benefited from the booming market and bright performance growth.
The industry boom is high, and the power device business group makes great efforts. In recent years, the application field of power semiconductors has expanded from industrial control and consumer electronics to many markets such as new energy, rail transit, smart grid and variable frequency household appliances, and the market scale shows a steady growth trend. According to the data of omdia, the scale of China’s power semiconductor market is expected to reach 19 billion US dollars in 2024. According to the company’s 2021 semi annual report, MOSFET products accelerated platform technology iteration and enriched product series through the construction of characteristic process capacity, and the sales revenue increased by 43% year-on-year. IGBT realized the reduction of chip area through the upgrading of 6-inch platform product technology, further improved product performance and reliability through the development of 8-inch IGBT technology platform and product serialization research and development, extended value and expanded customer selection space through IGBT chip modularization, and the sales revenue of IGBT products increased by 94% year-on-year. The power device business group increased the customer sample delivery of sicjbs products in PC power supply, charging pile, Cecep Solar Energy Co.Ltd(000591) inverter, communication power supply and other industrial control fields. The orders increased significantly, and the sales revenue achieved a breakthrough growth. The research and development of the second generation of sicjbs products progressed smoothly, and the chip size was 25% smaller than that of the first generation.
Equity incentive shows development determination and long-term mechanism stimulates employees’ enthusiasm. On December 25, the company issued the restricted stock incentive plan (Draft) for 2021, which plans to issue no more than 15.07 million additional shares, accounting for 1.14% of the total share capital of the company, of which the first grant amount accounts for 80%, the reserved amount accounts for 20%, and the first grant price is 34.10 yuan / share. The performance assessment requires that the compound growth rate of the net profit attributable to the parent company from 2022 to 2024 compared with the average net profit attributable to the parent company from 2018 to 2020 shall not be less than 25%, 26% and 27% respectively, and shall not be lower than the 50th percentile of the benchmarking enterprise or the industry average. Through clear performance evaluation indicators and equity incentive scheme, it is expected to improve employees’ enthusiasm.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 9.28 billion yuan, 11.132 billion yuan and 13.358 billion yuan respectively, and the net profit attributable to the parent company will be 2.228 billion yuan, 2.55 billion yuan and 2.943 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk tip: the prosperity of the industry is lower than expected; Product R & D and technology iteration are not as expected; International trade friction risk; Downstream demand is less than expected risk.
