Recently, Saijing Technology released its 2023 performance report. In 2023, the company's sales revenue was about 1.05 billion yuan, up 15% year on year; gross profit margin was 32%, up 4 percentage points year on year. Affected by this, the company's profit level bucked the trend. Net profit attributable to the parent company was about 31.55 million yuan, an increase of 31% over the previous year. At the performance briefing, the company also stated that it will strive to achieve the business target of 50% revenue growth in 2024.
The inflection point of the company's performance was officially established. Behind the strong profit growth momentum, the company's development in the UHV and power semiconductor fields has taken a leap forward.
DC transmissionspheresEmbrace another breakthrough
The company provides anodic saturated reactors, power capacitors and other device products for transmission and distribution projects. The business mainly involves UHVDC transmission and flexible DC transmission projects.
The power grid transmission and distribution business is the company's basic plate and ballast stone. In 2023, the power grid transmission and distribution business performed very well. Thanks to the intensive implementation of UHV projects, the company's sales revenue in the DC transmission sector increased 43% year-on-year to 250 million yuan.
According to a research report by Haitong Securities, UHV construction is speeding up. Jinshang-Hubei, Longdong-Shandong, Hami-Chongqing, and Ningxia-Hunan DC UHV projects have already started, and construction of 5 DC UHV lines and 2 AC UHV systems is expected to commence in 2024. According to the Guolian Securities Research Institute, according to the 14th Five-Year Plan, China will have to build at least 12 DC UHV lines, with an estimated total investment of more than 240 billion yuan. Meanwhile, power grid investment plans for the “15th Five-Year Plan” are also expected to be released one after another. According to the 15th Five-Year Plan, it is expected that an average of 3-4 DC UHV lines will be started each year, and the industry will continue to thrive. According to the 2025 grid connection plan, this year and next two will be a period of rapid growth in industry investment.As an industry leader, the company has profoundly benefited from the dividends of intensive UHV construction in the past year and obtained growth in related orders and deliveries; looking forward to the future, this high boom will continue, leading to accelerated growth.
It is worth mentioning that at the beginning of 2024, the company's two flexible DC support capacitors successfully passed the national new product technical certification, preparing for batch engineering application of this type of product.
“Flexible straight” refers to flexible DC transmission technology (VSC-HVDC). This technology is based on traditional DC transmission technology, uses high-power IGBTs to replace thyristors, and uses pulse width modulation technology to convert and transport electric energy. It has strong advantages in terms of reactive power compensation, no need to support the power supply, no commutation failure, and flexible power control. It can be said that flexible DC transmission technology is the application of next-generation power electronics technology in the field of power transmission. It is the future of power electronics technology, and has broad development space. However, Guohai Securities Research Institute pointed out thatIn flexible DC transmission technology, among key equipment such as flexible direct converter valves, power electronic devices are highly dependent on imported products. There are still problems such as core technology being restricted by people and low localization rates, and production development is slow across the country.The progress made by Saijing Technology has accelerated the pace of large-scale domestic replacement of DC support capacitors in flexible straightening projects, and has also laid the foundation for the company to further open up development space for the flexible DC transmission business.
The backbone of domestic replacement of high-end power semiconductors
In addition to growing rapidly in the field of power electronics technology, the company's self-developed power semiconductors have also achieved rapid breakthroughs. In 2023, the company's potential in power semiconductors was initially realized. The self-developed power semiconductor business revenue was 81.45 million yuan, an increase of 105% over the previous year, doubling! As can be seen, the semiconductor business has formed the company's second growth curve and has become a new growth pole.
Guohai Securities pointed out that Saijing Technology is a technology-leading and influential power electronics device supplier and system integrator in the industry, as well as a leading international innovative R&D enterprise. According to public information, Saijing Technology's three subsidiaries were selected as the first batch of specialized, special and new SMEs in Zhejiang Province in 2023, which shows that the company's R&D strength has been officially recognized.
It is worth noting that Saijing Technology has been deeply involved in the field of power semiconductors for many years, and has made a breakthrough in this field in recent years.
Judging from the development trajectory of power semiconductors, high power, high frequency (miniaturization), and low power consumption are the directions of technological evolution. Currently, power devices mainly include power diodes, bipolar transistors, power MOSFETs, and IGBTs. Among them, MOSFETs and IGBTs are the products with the highest specific weight among power discrete devices.
In 2020, Saijing Technology officially released its first IGBT product; the following year, the company's first IGBT production line was completed and put into operation, and i20 IGBT chips and ED packaged IGBT modules were mass-produced. In 2023, Saijing Technology launched various new products such as 1700V IGBT and FRD chips, ST packaged IGBT modules, HEEV packaged SiC modules, and EVD packaged IGBT modules. According to reports, SiC modules are automotive-grade products. In addition, Saijing Technology has begun research and development of several series of chips and modules with voltages of 1200V and 1700V, including Si IGBTs and SiC MOSFETs, which are expected to be launched one after another in 2024.This means that the company is not only moving towards higher-end IGBTs, but is also entering the third-generation semiconductor circuit.
According to the mainstream technology level in the world, high-end discrete devices such as SIC MOSFETs and IGBTs are the most advanced and highly technical categories of power devices. Since the technical threshold for such products is higher and the process complexity is stronger, there is still a big gap between China's overall industrial technology level and the world's leading level, and it is a core field for domestic replacement of power semiconductors.It is easy to see that the company is rapidly moving towards the goal of being a “world-class domestic power semiconductor manufacturer.”
Saijing Technology's semiconductor products have successfully entered the industrialization stage and have been recognized by downstream companies.In 2023, the company achieved mass delivery to 38 customers, an increase of 36% over the same period last year.“94% of sales revenue comes from new energy generation, energy storage, and electric vehicles with high entry barriers and demanding quality requirements.” Saijing Technology's management said at the performance briefing.
It is worth mentioning that in 2023, in addition to continuously improving product layout and increasing product penetration rate, Saijing Technology will continue to expand production capacity. At the performance briefing, Saijing Technology's management revealed that in 2024, the company will speed up production capacity expansion and strive to complete the construction of the third IGBT module and the first silicon carbide module sealing and testing production line. After the production line is completed, it helps the company to carry out more efficient internal collaboration and production research and development, and accelerate the rapid launch of new products and processes. In the future, the company is expected to accelerate towards a new stage of large-scale industrialization of high-end power semiconductors.
The 2023 performance report marks the establishment of an inflection point in Saijing Technology's performance. Behind the performance is the company's continuous development and innovation in the field of direct transmission and power semiconductors. As the company gradually established its leading position in the industry,
More impressive performance growth is likely to be achieved in the future.