\u3000\u3000 Hangzhou Silan Microelectronics Co.Ltd(600460) (600460)
Core view
Event:
The company issued the announcement of annual performance increase in 2021.
Comments:
The net profit after deducting non profits was in line with expectations, and the annual performance was the highest in history. The company expects to realize a net profit of RMB 1.518-1.531 billion in 2021, a year-on-year increase of + 21.45 times to + 21.65 times; The net profit attributable to the parent company after deducting non profits was 912-926 million yuan, and the net profit attributable to the parent company after deducting non profits was negative in the same period last year.
The amount of profit and loss from changes in the fair value of financial assets is large, resulting in a large difference between net profit and net profit after deduction. Among them: 1) Shanghai Anlogic Infotech Co.Ltd(688107) was listed on the science and innovation board in November 2021, and the share of net assets enjoyed by the company was adjusted according to the fair value at the end of the period, resulting in an increase in net profit of 534 million yuan; 2) Since the introduction of external investors in 2021, the share of net assets enjoyed by the company was adjusted according to the fair value at the end of the period, resulting in an increase in net profit of 52.29 million yuan.
In 2021q4, the outlook continued, and the ring ratio of net profit decreased slightly after deducting non-profit. 2021q4 is expected to achieve a net profit of 794-808 million yuan, a year-on-year increase of + 250.64 times to + 254.92 times, a month on month increase of + 162.65% to + 167.12%; The net profit attributable to the parent company after deducting non-profit was 225-239 million yuan, and the net profit attributable to the parent company after deducting non-profit was negative in the same period last year, from - 21.12% to - 16.39% month on month.
The construction of production capacity has been promoted in an orderly manner, and the downstream areas have blossomed at many points. In 2021, the company basically completed the production capacity construction goal set at the beginning of the year, and the company's products continued to make breakthroughs in high threshold markets such as white power, communication, industry, photovoltaic and new energy vehicles; The operating revenue of power management chips, MEMS sensors, IPM (intelligent power module), MOSFET, IGBT, SBD, TVs, FRD, led and other products has increased significantly, the product structure has been continuously optimized, the comprehensive gross profit margin of products has been significantly improved, and the operating profit has increased significantly.
In 2021, the downstream of the company is highly prosperous, and Shilan Jixin and Shilan Mingxin are expected to make profits. In 2021, the subsidiary Shilan Jixin 8-inch line basically maintained full production, and continuously optimized the product structure to achieve annual profit; The subsidiary's shimingxin LED chip production line achieved full production, high yield and annual profit.
Profit forecast:
We expect the net profit attributable to the parent company in 2021, 2022 and 2023 to be RMB 1.52/1.372/1.609 billion respectively, corresponding to 45 / 50 / 43 times of the current share price PE respectively, maintaining the "buy" rating.
Risk tips:
Production line construction is less than expected, demand is less than expected, and customer expansion is less than expected
