Main points of investment
The company integrates chip design, wafer manufacturing and packaging and testing business. The company's business includes special integrated circuits and devices, discrete devices and analog integrated circuits, wafer manufacturing, packaging and testing, diversified business layout, special IC business led to pull the company's performance growth, 8-inch wafer contract production line gradually climbing, company 21 full-year, 22Q1-3 revenue of 2.04 billion yuan, 1.74 billion yuan, an increase of 97%, 23%, home net profit of 550 million yuan, 440 million yuan, an increase of 841% and 29%.
Special integrated circuits and devices: rich in product categories, profoundly benefiting from the trend of localization of special electronics.
In 21 years, the company's special business revenue was 810 million yuan, an increase of 86%, accounting for 40% of the revenue. Due to the high industry barriers, the gross profit margin was as high as 68%. The company has been engaged in special IC business for more than 30 years, and is one of the earliest enterprises engaged in the development of special optoelectronics, special discrete devices, special CMOS logic circuits, special power management circuits and special hybrid integrated circuits. The products are widely used in instruments, communication transmission, remote sensing, water transport, land transport and other special fields. Special integrated circuits and devices do not have high requirements for the manufacturing process, and special markets such as national defense and information security have a strong demand for independent design. At the same time, on the supply side, the market pattern of special IC is relatively scattered, and each manufacturer has its own emphasis and occupies an advantage in the field of segmentation. In the future, the company is expected to deeply benefit from the trend of localization of special electronics and achieve steady growth of special IC business.
Wafer foundry: IPO raises investment for a 12-inch production line project, and the process platform continues to expand. In 21 years, the company's wafer foundry business revenue was 770 million yuan, an increase of 353%, accounting for 38% of the revenue. As the 8-inch production line continued to climb, the gross profit margin increased from negative to positive to 22%. The company has deep experience in manufacturing 6max 8-inch wafers. By June 2022, 6-inch production capacity reached 65,000 wafers / month, 8-inch production capacity reached 45,000 wafers / month, 6-inch production line layout plane MOS, planar IGBT, SBD, FRD, simulation IC and other process platforms, 8-inch production line expanded to groove MOS, planar MOS, groove IGBT, BCD, MEMS and other new process platforms. At the same time, the company has built a 6-inch SiC wafer production line with a monthly production capacity of 1000 pieces. IPO raised investment to build a 12-inch production line project, product positioning of high-density power devices, display-driven IC, power management IC, silicon chips, etc., the future is expected to achieve both revenue volume and profitability.
Profit forecast and investment rating: the company's special integrated circuit and device business has grown steadily, and the construction of the 12-inch wafer production line has been carried out in an orderly manner. based on this, we predict that the company's 22-24 return net profit will be RMB 5.7 million, and the IPO issue price will correspond to a PE of 46.0 and 59.4x. for the first time, there will be no investment rating in the IPO report.
Risk hint: the growth of special business is not as expected; the production of the new 12-inch production line is not as expected; market competition is intensified.
