What happened: the company recently released a semi-annual report on 2022, with revenue of 1.565 billion yuan in the first half of the year, an increase of 52.15% over the same period last year, a net profit of 503 million yuan, an increase of 140.81%, and a net profit of about 455 million yuan, an increase of 147.27% over the same period last year.
The performance in the first half of the year is in line with expectations and the industry is booming. The company's 22Q2 achieved revenue of 808 million yuan in a single quarter, an increase of 42.61 percent over the same period last year, an increase of 6.89 percent over the same period last year, a net profit of 265 million yuan, an increase of 99.14 percent and an increase of 11.43 percent, and a net profit of 221 million yuan after deducting non-return, an increase of 87.77 percent over the same period last year and a decrease of 5.6 percent. In terms of profitability, the company's Q2 gross profit margin fell slightly, falling 5. 29 pct to 44. 5% from Q1. 26%.
97%, mainly due to Jiaxing Jin Ruihong's combined table loss on April 1, 2022. From a business point of view, the gross profit margin of the semiconductor wafer business in the first half of the year was 43.17%, and the gross profit margin of the semiconductor power device business reached 58.92%. In addition, the company's Q2 net interest rate increased by 1.09 pct to 33.94%. The company's R & D expenditure in the first half of the year was 125 million yuan, an increase of 43.16% over the same period last year.
Silicon wafer power compound RF troika drives the company's rapid development. Driven by the national policy, the acceleration of domestic substitution of semiconductors and the rapid development of clean energy and new energy vehicles, the downstream demand continued to increase during the reporting period, and the market segment of the company continued to be in high demand. The company's sales orders are full, and the production and sales of major products have increased significantly. In the wafer plate, the company's 6ramp 8-inch wafer production line has been running at full load for a long time, in which the special specification of heavily doped silicon epitaxial wafers is in short supply. The scale of 12-inch silicon wafers is rapidly increasing, and its technical capabilities cover more than 14nm technical node logic circuits. at present, the main products sold include polished wafers and epitaxial positive wafers; the power sector, benefiting from the rapid growth of the photovoltaic market, has led to a substantial increase in the company's power device business, of which photovoltaic products continue to increase, accounting for 62% of the total shipments of power devices and about 45% of global photovoltaic chip sales. The shipment volume of trench chips has increased significantly, reaching a year-on-year increase of 19.4%. Significant progress has been made in the development of FRD chip products, and has entered the stage of mass production.
In addition, the development of 5G communications and smart phones has led to the promotion and application of gallium arsenide radio frequency chips, and new technologies and products such as 3D recognition, artificial intelligence, self-driving and smart home also bring more space for the development of gallium arsenide radio frequency chips.
The global silicon wafer supply is in short supply, and the domestic replacement acceleration industry maintains a high demeanor. At present, the new production capacity of global silicon wafers is limited, and large overseas manufacturers have announced production expansion in the second half of 21 years. It is estimated that it will take about 2 years for mass production of new capacity, superimposed wafer expansion cycle and new domestic production lines put into production. Domestic silicon wafers ushered in a golden period of development. As one of the leading manufacturers of domestic silicon wafers, the company has excellent profitability based on 6-8 size heavily doped silicon wafers, the first phase production capacity of 12-inch silicon wafers continues to climb and release, and the yield continues to rise. in addition, the company plans to acquire Guojing semiconductors. the main products are 12-inch lightly doped silicon wafers for integrated circuits, and the company will make up for the short board of 12-inch lightly doped silicon wafers, which has a wide space for domestic substitution.
Investment suggestion: it is estimated that the net profit of 2022Universe 2023max in 2024 is RMB 1.424b 1.671 billion respectively, corresponding to PE in 38-28-24, the company is one of the leading manufacturers in the silicon material industry in mainland China. Under the background of localization, the downstream demand is strong, the product structure is continuously optimized, scarcity and growth are both available, and the company is given a "buy" rating.
Risk tip events: Silicon wafer and power may be less than expected, new capacity expansion may not be as expected, upstream raw material price risk.