Incidents:
The company announced its 2024 semi-annual report. 24H1 achieved revenue of 0.873 billion yuan, +15.16% year over year, net profit to mother of 0.218 billion yuan, +47.45% year over year, net profit of not attributable to mother 0.214 billion yuan, +55.21% year over year.
24Q2 achieved revenue of 0.502 billion yuan, +30.40% YoY, net profit to mother 0.118 billion yuan, +42.25% YoY, net profit not attributable to mother 0.131 billion yuan, +75.96% YoY.
Comment:
Downstream demand recovery and product structure optimization contributed to 24Q2 performance growth. The company focuses on semiconductor power devices and module businesses such as MOSFETs and IGBTs. It has a complete series of more than 3,000 product models, and is a technology-leading domestic power device Fabless enterprise. 24Q2 achieved revenue of 0.502 billion yuan, +30.40% year over month, +35.01% month on month; gross profit margin of 36.53%, +6.85pct year on year, and +1.77pct month on month, increasing for 4 consecutive quarters. On the expense side, the total cost rate for the four 24Q2 items was 7.31%, +0.76pct year over year, and +3.52 pct month-on-month, mainly due to a decrease in interest income and an increase in financial expense ratios. The profit side was affected to a certain extent by profit and loss due to changes in fair value. 24Q2 achieved a net profit margin of 23.43%, +1.95pct year over year, and -3.49pct month-on-month; net profit to mother of 0.118 billion yuan, +42.25% year-on-year, and +17.50% month-on-month. Inventory at the end of 24Q2 was 0.33 billion yuan, -13.51% month-on-month. Inventory has continued to decline since 23Q3, and the recovery trend is obvious. The company's high performance growth is mainly due to: 1) the recovery of the downstream market and the increase in demand in emerging fields; 2) the company actively optimizes the product structure, market structure and customer structure.
Medium- and low-voltage MOS revenue has increased rapidly, and some materials are in short supply. The recovery of power semiconductors at this stage is mainly focused on medium- and low-voltage MOS. By product, 2024H1's SGT MOS achieved revenue of 0.36 billion yuan, +40.29% of revenue, accounting for +7.49pct to 41.44% of revenue; Trench MOS achieved revenue of 0.255 billion yuan, +19.64% year-on-year, accounting for +1.15pct to 29.30% of revenue; SJ MOS revenue of 0.102 billion yuan, +8.49% year-on-year, revenue share -0.70pct to 11.78%; IGBT revenue was 0.141 billion yuan, -22.64% year-on-year, accounting for -7.87pct to 16.20% of revenue.
Looking downstream, 24H1 industrial control accounts for 42%, pan-consumption accounts for 18%, light storage accounts for 14%, automobiles account for 13%, AI computing power and communication accounts for 9%, and intelligent short transportation accounts for 4%.
The product structure continues to be upgraded, and there is plenty of room for domestic replacement. With the advantage of being rooted in power semiconductors for a long time, the company deeply understands industry trends, adjusts and optimizes product structures in a timely manner, and upgrades downstream applications from the original industrial control, consumption, and short-distance transportation to emerging fields such as automotive electronics, optical storage, AI computing power, and low-altitude economy. In terms of automotive electronics, full coverage of the power range, vehicle body area, chassis domain, smart driving domain, and smart cockpit area has been achieved. In recent years, the focus of overseas power leaders has gradually shifted to third-generation semiconductors such as SiC. Domestic replacement space for medium- and low-voltage power semiconductors is vast. In the future, the company is expected to achieve rapid growth with leading technology, rich material numbers, and a keen judgment on industry development trends.
Investment advice: The company is expected to achieve revenue of 1.884/2.368/2.932 billion yuan in 2024-2026 and net profit of 0.45/0.56/0.699 billion yuan, corresponding PE of 25.67/20.62/16.52 times. Considering the company's product upgrades and share increase, the first coverage is given a “buy” rating.
Risk warning: downstream demand falls short of expectations, market competition intensifies, supply chain risks