In 2022 Q1, the company achieved revenue of US $595 million, up 95.1% from the same period last year, up 12.6% from the previous month, and reached a new high; the net profit from home was US $103 million, up 211.4% from the same period last year, down 22.9% from the previous year; and the gross profit margin was 26.9%, up 3.2% from the same period last year and down 5.6% from the previous year. 2022Q2, which expects sales of about $615 million and a gross profit margin of about 28% Mel 29%.
Characteristic IC + Power Discrete, structural lack of core to promote ASP. The company focuses on characteristic process platforms such as non-volatile memory, power devices, analog and power management, logic and radio frequency, and image sensors. In 2022, the market for mobile phones and consumer products lacked development momentum and became a stock market, with supply and demand gradually reaching a balance; there was a structural capacity gap in incremental markets such as the Internet of things, electric vehicles, and new energy, and the market demand for characteristic processes remained high, boosting the average sales price of products in an all-round way.
The proportion of 12-inch sales has increased, and it has the world's first 12-inch power device OEM production line. The sales income of 2022Q1 8-inch and 12-inch wafers is US $3.33 and US $262 million respectively. Sales of 12-inch products accounted for 44.1%, an increase of 26.2% over the same period last year and 5.2% month-on-month growth.
The company's 12-inch wafer factory (Huahong No. 7 Plant) in Wuxi High-tech Industrial Development Zone, with a monthly production capacity of 65,000 pieces, is the first 12-inch power device foundry production line in the world.
Science and Technology Innovation Board's listing has been approved by the board of directors, and production capacity is expected to be further expanded. The board of directors of the company has approved the listing plan of Kechuang Board, which intends to issue 434 million new shares and raise 18 billion yuan. Of the funds raised, 70% (12.5 billion yuan) is invested in the Wuxi project of Huahong Manufacturing, 11% (2 billion) is used for the optimization and upgrading of 8-inch wafer plants, 12% (2.5 billion yuan) is used for process and technological innovation R & D projects, and 6% (1 billion yuan) is used to supplement working capital.
Investment suggestion
The company is expected to have revenue of US $23.16 / 26.17 / 3.088 billion in 2022-2024, an increase of 42%, 13% and 18% respectively, and net profit of US $497 million, an increase of 24%, 35% and 14%, respectively. The current price is 14 times PE in 2022. Taking into account the strong demand in the downstream market, products in short supply, maintain the "buy" rating.
Risk hint
Downstream applications are not as expected, equipment delivery is delayed, and the risk of increased competition in the industry.