In 2021, the net profit of homing increased by 51% and the income of 1Q22 decreased by 23% compared with the previous year. The company's 21-year revenue is 437 million yuan (YoY 60%), the return net profit is 131 million yuan (YoY 51%), and the non-return net profit is 127 million (YoY 53%). The 21-year gross margin fell by 1.65pct to 46.77%, and the net profit margin fell by 0.11pct to 31.67%. 1Q22's revenue is 96 million yuan (YoY 13%, QoQ-23%), net profit is 20 million yuan (YoY-42%,QoQ 15%), gross profit is 43.68%, 6.85pct is lower than the same period last year, 10.04pct is higher than the previous year. The net interest rate was 25.28%, down 16.13pct from the same period last year, and the month-on-month increase in gross profit margin of 7.41pctMagne4Q21 and 1Q22 was mainly due to the increase in the price of upstream polysilicon raw materials, while the decline in revenue was mainly due to weaker downstream demand and customer destocking. With the end of the destocking cycle, the company's revenue is expected to resume growth.

To complete the layout from silicon rods to wafers to power devices, the industrial synergy advantage is obvious. The company completes the business layout of semiconductor silicon rod, semiconductor silicon wafer, semiconductor power chip and device, forming the integration of industry chain, in which silicon wafer includes grinding wafer, decaying wafer, polishing wafer and so on. mainly used in all kinds of power diodes, power transistors, high-power rectifiers, thyristors, over-voltage / over-current protection devices and other power semiconductor devices, as well as the manufacture of some sensors and optoelectronic devices Power chips and devices are widely used in microwave ovens, laser printers, photocopiers, CRT/TV displays, X-ray machines and large medical equipment and other fields. In 2021, the company's silicon wafer income is 282 million yuan (YoY 48%), accounting for 64%, with a gross profit margin of 48% (+ 0.5pct); silicon rod income is 85 million yuan (YoY 7%), accounting for 19%, gross profit margin is 43% (- 8.2pct); power chip and device income is 62 million yuan, accounting for 14%, gross profit margin is 38%.

Fund-raising projects to expand large-size silicon wafers, new plants to expand the production capacity of power devices. While consolidating the market position of small-size silicon wafers, the company has steadily expanded the large-size silicon wafer market, and the fund-raising project is accelerating. By the end of the 21st, 48% of the funds have been invested. To complete the plant civil engineering, process pipelines and clean plant installation projects, high-configuration and sewage treatment project construction, water and electrical public power system, environmental protection treatment system, equipment installation and process commissioning. Jiangsu Gaoxin, which is invested and established, undertakes the original assets and business of Nantong Gaoxin, produces semiconductor power chips and devices, and has a full set of manufacturing technology and production lines of plastic encapsulated high-frequency and high-voltage diodes with international advanced level. it has a leading position in the market segment, and plans to further enrich the company's product types and create new profit growth points through new plant expansion. As of March 31, the company's fixed assets and projects under construction were 2.87 yuan and 154 million yuan respectively, an increase of 112% and 710% over the same period last year.

Investment suggestion: the fund-raising project is progressing smoothly and the "buy" rating is maintained. We expect the company's 2022-2024 net profit to be 170Universe 291 million (the previous value from 2022 to 2023 is 297 million yuan), with a year-on-year growth rate of 30pm 29Univer 32%. EPS is 1.71x2.21x2.92, and the PE corresponding to the stock price on April 25, 2022 is 2712116x. The company's large-size semiconductor wafer fundraising project is progressing smoothly, maintaining a "buy" rating.

Risk hint: the progress of the fund-raising project is not as expected, the demand is not as expected, and the risk of increased competition.