Event: the company issued an announcement on the signing of the "Strategic purchase intention Agreement" by the wholly-owned subsidiary Hunan Sanan and the demand side (mainly engaged in new energy vehicle business) signed the "Strategic purchase intention Agreement" for silicon carbide chips. this agreement stipulates that the buyer places a purchase order with the supplier according to the actual demand, based on the perception of market price in 2022, including the R & D business demand generated in 2023. The total amount is estimated to be 3.8 billion yuan (including tax) by 2027, and the buyer promises to ensure the annual purchase of silicon carbide chips from Hunan Sanan from 2024 to 2027, with the excess determined through consultation between the two parties.
Signed the "Strategic Purchasing intention Agreement", silicon carbide specification-level business accelerated: the announcement revealed that Hunan Sanan Semiconductor Co., Ltd., a wholly owned subsidiary of the company, signed a "Strategic Purchasing intention Agreement" with the demand side (mainly engaged in new energy vehicle business). The supplier provides products and services to the buyer at a certain price, and the buyer places a purchase order with the supplier according to the actual demand. Based on the market price perception in 2022, including the R & D business demand generated in 2023, the total amount is estimated to be 3.8 billion yuan (including tax) by 2027. The buyer undertakes to ensure the annual purchase of silicon carbide chips from Hunan Sanan from 2024 to 2027, with the excess determined through consultation between the two parties.
The silicon carbide chips supplied this time will be used in the driver drive of new energy vehicles, and the company's silicon carbide vehicle specification-level business will be accelerated.
The demand in the field of new energy is strong, and the silicon carbide industry is on the eve of rapid growth: Silicon carbide has excellent physical properties, high temperature, high pressure and high frequency, which is the first choice of power devices under high voltage platform.
Under the market demand of high battery life and fast charging, the upgrading trend of new energy vehicles from 400V to 800V has become an overall situation. The advantages of power devices made of silicon carbide are obvious. In the future, with the reduction of battery and device costs, economical electric vehicles are also expected to carry high-voltage solutions. According to CASA, the market of SiC power semiconductors in new energy vehicles is expected to grow at a compound annual growth rate of 38% by 2025. The domestic photovoltaic market continues to maintain a high bearing. According to the data of the State Energy Administration, China's photovoltaic power generation in 2021 was 325.9 billion kilowatt hours, an increase of 25.1% over the same period last year. By 2021, China's photovoltaic market has newly installed 54.88GW, and the cumulative installed capacity is 306GW. China's photovoltaic cumulative installed capacity has ranked first in the world for six consecutive years. Silicon carbide power devices can improve the efficiency of the inverter, increase the power density and reduce the volume and weight. There is a strong demand in the field of new energy, opening up the silicon carbide market, and the industry is on the eve of rapid growth.
The company's customers are advancing smoothly, increasing investment and greatly expanding production capacity: the 2021 annual report reveals that the company's silicon carbide diodes have opened up more than 500 new customers and shipped more than 200 customers in 2021, and more than 60 kinds of products have entered the stage of mass production. Photovoltaic inverter Sunshine Power supply, Guriwatt, Goodway, Costa and other top 20 domestic customers have entered Silicon carbide MOSFET industrial-grade products have been sent to customers for verification, car specification-grade products are working with a number of car companies to do taping design and testing, and major breakthroughs have been made in the cooperation between car specification-level and key customers of new energy vehicles.
With the continuous release of production capacity, the company's operating performance is expected to continue to improve.
Investment suggestion: we expect the company's income from 2022 to 2024 to be 14.477 billion yuan, 20.886 billion yuan and 27.859 billion yuan respectively, and its net profit to be 1.668 billion yuan, 2.997 billion yuan and 4.22 billion yuan respectively, maintaining the "buy-A" investment rating.
Risk hint: the prosperity of the new energy industry is lower than expected; the risk of product price fluctuation; the progress of research and development is not as expected.