Core ideas:
Yan Dongwei: domestic well-known integrated circuit and discrete device manufacturing and system solution provider. The company was founded in 1987 and is headquartered in Zhongguancun, Beijing. The company uses IDM mode to engage in product and solution business, including discrete devices, analog integrated circuits, special integrated circuits and devices; Foundry mode is used in manufacturing and service business, mainly providing wafer manufacturing services and packaging and testing services. 2022H1 special integrated circuits and devices and wafer manufacturing account for about 88% of revenue, which is the company's main source of revenue and an important driving force for the company's growth.
Special integrated circuits and devices: the general trend of national production, the company has obvious advantages in technology and products.
Special integrated circuits and devices are widely used in special fields such as instruments, communication transmission, remote sensing and telemetry. The company has a wide layout in many fields, such as special optoelectronic and discrete devices, special analog, special digital, special hybrid integrated circuits and so on, and has achieved a high market share in the market of special optocouplers. It also has a certain product competitiveness in subdivision fields such as highly reliable field effect transistors and special general logic circuits, and has the domestic substitution ability of many kinds of products. Under the general trend of national production of the industry, the company is expected to increase its market share by virtue of its advantages in technology and products.
Wafer manufacturing: there is an urgent demand for domestic substitution in the industry, and fund-raising projects inject new momentum into the growth of the company.
According to IC Insights data, the integrated circuit output value of Chinese local enterprises can only meet 5.9% of Chinese mainland's integrated circuit demand in 2020, and there is an urgent need for domestic replacement in the wafer manufacturing industry. At present, the demand in the lower reaches of the industry is strong, and the company's capacity utilization rate is maintained at a high level. The company's fund-raising project plans to build a 12-inch wafer production line, which will give full play to the company's advantages in the upstream and downstream industrial chain, production management and control, and talent technology in the field of wafer foundry, and the release of production capacity will also inject new momentum into the company's growth. to help the company achieve rapid growth in contract manufacturing scale and business income.
Profit forecast and investment advice. It is estimated that from 2022 to 2024, the company's operating income will be 2.243 billion yuan, and the net profit will be 5.87 billion yuan. With reference to the valuation of the comparable company, the company is given a valuation of 2.3-2.5 times PB after excluding the funds raised by IPO in 2023, and the corresponding reasonable value is 21.76-23.65 yuan per share.
Risk hint. Research and development is not as good as demand, downstream demand is not as expected, and customer concentration is high.
