Event: In the first half of 2022, the company achieved operating income of 204 million yuan, a year-on-year increase of 0.81%, net profit of 32.1767 million yuan, a year-on-year increase of 25.04%, after deducting non-return net profit of 28.3965 million yuan, an increase of 16.28% over the previous year.
Relying on the Smart IDM ecosystem idea, we continue to improve the power semiconductor business layout. In the first half of this year, the company continued to deepen the construction of the power semiconductor Smart IDM ecosystem, and achieved outstanding performance in all key aspects: (1) The extensive integration responsible for design collaborated with the 12-inch fab to successfully develop the separation gate low voltage field effect transistor (SGT-MOSFET) and successfully mass-produced it. It is expected that the second half of the year will gradually begin. The company's power semiconductor product structure will be effectively improved. Of course, due to the high pace of customer preparation, the sales volume of MOS field effect transistors declined year-on-year, but I believe with the signing of new contracts in July and October Customer orders are delivered in a timely manner, and the company's production and sales level is expected to rise steadily throughout the year; (2) Guangxin Microelectronics completed the capping of the main structure of the plant in the second quarter, and the overall construction progress is in line with expectations. It is expected that production will climb by the end of the year. The company will once again increase its capital by 150 million yuan, and the Lishui Green Industry Development Fund will increase capital by 90 million yuan to provide financial support for the construction and subsequent growth of Guangxin Microelectronics; (3) Jingrui Electronics epitaxial chip has completed a full range of product line testing and verification in broad and micro integration, and has become its core supplier. Synergistic effects are gradually becoming prominent; (4) Increased capital to participate in Microtech, which specializes in ultra-thin film back-end processing, and is mainly used for advanced power devices. In the future, it is expected that effective collaboration at the technical level will be formed with Guangxin Microelectronics to help the company enter the field of high-end power devices. Overall, as fields such as new energy vehicles, photovoltaics, wind power, and energy storage drive the size of the power semiconductor market, compounded by domestic substitution trends, Minde's “Smart IDM” layout model conforms to the development direction of the industry and is expected to stand out in the future.
Increase the industrial barcode recognition market and optimize the downstream customer structure. In the first half of the year, due to the impact of the epidemic, retail supermarket demand for barcode recognition business was suppressed, and the company's revenue from this business was basically the same year on year, but it is worth noting that in the first half of the year, the company successfully launched an ultra-thin, soft-resolved two-dimensional image scanning engine. In the past two years, with the rapid growth of industries such as new energy vehicles, lithium batteries, etc., domestic related production line investment and construction is progressing rapidly. This will bring clear incremental space to the industrial barcode recognition market. Therefore, the company's layout in the field of industrial barcode recognition is expected to generate considerable revenue Profit incremental elasticity.
Develop new energy and energy storage distribution business and build a differentiated competitive advantage. The wholly-owned subsidiary Taibo Xunrui was originally mainly responsible for the distribution business of semiconductor electronic components, but due to the impact of the epidemic, its performance in the past two years has not been ideal. Therefore, the company has actively expanded product agency and downstream distribution in the fields of new energy, energy storage, etc., and has built a differentiated competitive advantage. It has established long-term cooperative relationships with major domestic energy storage battery manufacturers such as BYD, and has the ability to provide customers with corresponding solutions. In the first half of this year, orders from NEV customers have increased quite significantly. Subsequently, with the rapid success of the NEV and energy storage markets, Taibo Xunrui is expected to enter second growth Orbit.
Investment Ratings and Recommendations: Maintain buy ratings. The steady growth and cash flow contribution of the traditional bar code reading terminal business is the foundation of the company's healthy development over the past few years. Through acquisitions and layout in recent years, the company has successfully opened up the second power semiconductor race track, and has gradually completed the “smart IDM” ecosystem layout in the semiconductor sector. Currently, the extensive and micro integration of the design process has entered a fast track of growth, and VivoElectronics in the silicon chip sector also has strong performance growth. It is expected that in 2023, the Wafer Link Microelectronics project is being built and promoted in an intense and orderly manner, and is expected to form a better integrated and advanced Jingrui Electronics in 2023 Synergistic effects It is estimated that net profit of 1.14, 261, and 416 million yuan will be achieved in 2022-2024. The current market value corresponds to PE 58.06, 25.29, and 15.87 times. Considering the company's future profit composition, the semiconductor business share is expected to continue to increase, high-tech attributes continue to increase, and maintain the company's purchase rating.
Risk warning: (1) The number of orders placed by overseas customers for barcode reading equipment fell short of expectations; (2) the construction progress of the Guangxin Microelectronics project fell short of expectations, and the synergistic effects were lagging behind.