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华虹半导体(01347.HK):产能快速扩充 与需求共振

Hua Hong Semiconductor (01347.HK): rapid capacity expansion and demand Resonance

東方證券 ·  Nov 12, 2021 00:00

Core point of view

Sales revenue hit a new high and gross profit margin rose month-on-month. The company achieved revenue of $450 million in the third quarter, significantly exceeding the guidance ($410 million), up 79% from the same period last year and 30% from the previous quarter, and its net profit in the third quarter was $50 million, up 187% from the same period last year and 15% from the previous quarter. In terms of gross profit margin, the gross profit margin in the third quarter reached 27.1%, slightly exceeding the upper limit of the guidelines (27%), an increase of 2.9pcts over the same period last year and an increase of 2.3pcts over the previous year.

The company's fourth-quarter sales guidance is $490 million, with a gross profit margin of 27% Mel 28%.

The 8-inch wafer continues to be fully produced and the ASP continues to improve. The company's 8-inch business generated revenue of $310 million in the third quarter, up 33% from the same period last year, 20% from the previous year, 35.2% from the previous quarter, and 3.6pcts from the previous year.

In terms of capacity utilization: the capacity utilization rate of the 8-inch plant remains high (112%). Due to the influence of equipment supply, the expansion of the industry's 8-inch production line is limited, but it still takes time for demand to move from 8-inch to 12-inch wafers. It is expected that the high utilization rate of the 8-inch production line will be maintained for a long time in the future. ASP: in the third quarter, the 8-inch wafer ASP was US $506, up 5% from the previous quarter. ASP has further upside space under the tight supply and demand situation.

The 12-inch line has accelerated production expansion and improved profitability. In the third quarter, Huahong Wuxi realized revenue of US $140 million, an increase of 63% month-on-month, a gross profit margin of 8.5%, and a month-on-month increase of 5.2pcts. In terms of production capacity and capacity utilization: the actual production capacity of 12 inch pieces in the third quarter is 530,000 pieces per month, and the company expects to expand production to 95000 pieces per month by the end of 2022; the capacity utilization rate in the third quarter is 109%. The company has improved the efficiency of the production line by strengthening operation and management. compared with 104% in the second quarter, the capacity utilization rate is further improved. We believe that the company's 12-inch production line expansion is timely, resonates with demand, and high capacity utilization is expected to be maintained. ASP: the 12-inch ASP in the third quarter was $1079, up 5% from the previous quarter, and the company's 12-inch ASP will continue to improve as the proportion of narrower linewidth IC produced on 12-inch chips increases in the future.

Financial Forecast and Investment suggestion

We forecast the company's net assets per share for 21-23 years to be US $2.09,2.30,2.56 respectively (the original forecast was US $2.07,2.26,2.51, mainly raising the 8-inch unit price forecast and lowering the operating expenditure forecast), and maintain the buy rating based on the comparable company's 21-year average of 4.2 times PB valuation, corresponding to the target price of HK $68.21 (the US dollar exchange rate is HK $7.77).

Risk hint

The downstream demand is lower than expected; the improvement of product structure is not as expected; the progress of customer introduction and technology development in Huahong Wuxi Plant is not as expected, and the improvement of expense rate is not as expected.

The translation is provided by third-party software.


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