N China Resources Micro (688396) Company In-Depth Research Report: Power Semiconductor Specialist Zhizhi Special Process Industry Specialization

N China Resources Micro (688396) Company In-Depth Research Report: Power Semiconductor Specialist Zhizhi Special Process Industry Specialization

Red chip science and technology main board market, rooted in semiconductor manufacturing technology, red chip science and technology board listed, high-quality companies return to A shares: China Resources Microelectronics was established in January 2003, with a total of 8 issued shares.

7.9 billion shares, the total share capital of the company after this issuance is 12.

1.6 billion shares (do not consider the impact of the follow-up green shoe mechanism on the total equity).

China Resources Microelectronics has a clear shareholding. The only shareholder before the listing was CRH (Micro), which holds 100% of China Resources Microelectronics. Its actual controller is China Resources.

At present, the company has 2 8-inch wafer production lines, 3 6-inch wafer production lines, 2 packaging test production lines, 1 integrated production line, 3 design companies, domestic enterprises with complete semiconductor industry chain, and special manufacturing processesLeading domestic technology leaders.

The company’s products and solutions adopt the IDM business model. According to our industry chain research, the design and development of power semiconductors and other products need to be closely integrated with the manufacturing process and packaging process. The IDM business model can better integrate internal resource advantages, which is more conducive toBased on the accumulation of technology and formation of product groups, and customized high-efficiency special processes based on customer needs to customize domestic MOSFET leading manufacturers, import substitution space is sufficient for downstream applications, and import substitution space is sufficient: From the perspective of the global competitive landscape, high-end MOSFETs and IGBTs are still importedMainly, data from Infineon’s fiscal year 2019 can be polished, and 35% of its sales to China have become its largest market.

The domestic power semiconductor discrete device industry started relatively late, but benefited from huge terminal consumer demand and the market size has grown rapidly. We believe that domestic terminal manufacturers are undergoing import substitution and related power device manufacturers are expected to usher in opportunities for gold development.

According to statistics from IHSMarkit, the company ranks third in the Chinese MOSFET market in some ways, second only to international companies such as Infineon and ON Semiconductor, and is the largest domestic MOSFET manufacturer in China.

   In the field of IGBT-specific consumer electronics industrial control, companies with obvious technological advantages have accumulated a lot of core technologies with independent intellectual property rights in the field of IGBT devices and manufacturing processes. The patent covers multiple IGBT device structures and process flows, including 600V-6500V multiple voltage platformsCan improve product reliability and product performance, currently has an expanded competitive advantage in the market.

The company’s IGBT devices have a wide range of applications in consumer electronics, industrial control, and new energy. At the same time, they also benefit from domestic alternative accelerators, and have long-term, stable market demand.

  The prospects of SiC and GaN are expected, and the leading advantage of R & D will be increased. SiC can manufacture high-withstand voltage, high-power power electronic devices such as MOSFET, IGBT, SBD, etc., which are used in industries such as smart grids and new energy vehicles.

Yole data shows that the compound annual growth rate of the SiC power component market from 2017 to 2023 is 31%, and it is expected to exceed $ 1.5 billion by 2023. Applications include motor drives, charging infrastructure, electric vehicles, solar photovoltaic, subways, etc.
From the point of view of application, what is different from SiC is that the core application of GaN is power.

Yole data points out that the GaN market size is expected to be about 4 in 2022.

$ 500 million.

Chen Nanxiang, the company’s executive vice chairman, said at the online media conference on the listing of the science and technology board that in the field of third-generation compound semiconductors, based on the long-term design and process precipitation, the company actively lays out third-generation semiconductor materials.GaN power device design, processing and packaging test technology, SiC power device design technology.

At the same time, the company intends to make full use of the advantages of the IDM mode and the technology accumulation in the field of power devices to achieve design and research and process technology research and development of 650V silicon-based GaN devices, SiC JBS devices and SiC MOSFET products.

  Investment recommendations we expect in 2019?
The company’s revenue will be 57 in 2021.

4.5 billion, 69.

6 billion, 83.

52 ppm, a ten-year increase of -8.

39%, 21.

15%, 20%; expected to achieve net profit attributable to shareholders of the parent company4.

10,000 yuan, 6.

3.5 billion, 8.

1.6 billion.

In terms of estimation, we compare domestic power semiconductor manufacturers with an average PE of about 40 times compared to 2021 (excluding the valuation of Silan Micro more than 100 times). Given the company’s leading advantage in the MOSFET field 无锡桑拿网 and sufficient future growth space, we give certain estimatesThe premium, for the first time, covered the “Buy” rating.

  There are risks associated with the gradual unrepaired supplementary risks; defects in the semiconductor industry; and technological gaps with international manufacturers.