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东方证券:给予立昂微买入评级,目标价位161.03元

Oriental Securities: give Lion WeChat a buy rating with a target price of 161.03 yuan

證券之星 ·  Jan 17, 2022 22:06

2022-01-18 Oriental Securities Co., Ltd. Yi Jian, Ma Tianyi and Tang Quanxi conducted research and released a research report entitled "benefit from high prosperity in the industry, 12-inch silicon wafers are expected to gradually expand". It is believed that its target price is 161.03 yuan, while the current share price is 117.98 yuan, with an expected increase of 36.49 percent.


Lionwei (605358)
Core point of view
Event: the company issued a performance forecast for 2021, which is expected to achieve a net profit of 5.9 to 640 million yuan in 2021, an increase of 192% to 217% over the same period last year, and a deduction of 5.47 to 597 million yuan in 2021, an increase of 264% to 297% over the same period last year.
The silicon wafer industry is booming, and the company leads the domestic substitution: in 2021, all the production lines of the company are running at full capacity, the sales orders are full, the production and sales of major products are greatly increased, and the prices of the products benefit from the increase. Wafer prices are expected to keep rising in 2022: 8-inch wafers signed with customers by SUMCO and Xinyue are up about 10% and 15% for 12-inch wafers. The company continues to expand the scale of cooperation with customers, the production and sales of 8-inch wafers are further enlarged, and the market share is further increased; 12-inch wafer customers continue to open up, and their technical capabilities have covered the technical node logic circuits above 14nm. Image sensor and power device chips cover all customers' technical nodes and have been shipped on a large scale. At present, the localization rate of 12-inch wafers is low, and the company takes the lead in heavily doped wafers. It plans to achieve a production capacity of 150000 wafers / month 12-inch wafers by the end of 2021, and will further expand its production capacity in the future, which is expected to lead the domestic replacement of large-size wafers.
New energy vehicles, photovoltaic-driven performance improvement of power devices: the company's power device products are mainly used in automotive electronics and photovoltaic and other fields, and the production and sales of automotive specification-level power device chips and photovoltaic bypass diode control chips increased significantly in 2021. In the future, automobile electrification will continue to increase the demand for power semiconductors, and the increase in photovoltaic installed capacity will also boost the demand for matching power devices. Power devices are in short supply, and the delivery time will continue to be extended, or prices will rise further. The company is highly competitive in segment areas, accounting for 35% of the global share of photovoltaic dedicated SBD, benefiting from the rapid growth of downstream demand in the long run, and the profitability improvement brought about by rising prices in the short term.
Actively layout compound semiconductors to further open the room for growth: GaAs is currently mainly used in the RF field, and its future applications in 3D deep cameras, automotive lidar and other fields are also expected to gradually expand. Liang Dongxin, a subsidiary of the company, currently has a manufacturing capacity of 70, 000 GaAs RF chips per year. At the same time, the company's Haining base is also under planning, with an estimated production capacity of 360000 pieces per year.
Profit Forecast and Investment suggestion
We raised the company's earnings per share forecast for 21-23 years to 1.30,1.97,2.80 yuan (the original forecast for 21-23 years was 1.27,1.96,2.80 yuan, mainly raised the revenue forecast for power devices, and lowered the government subsidy forecast for 21 years). Considering that the localization rate of large-sized silicon wafers is still at a low level and the company has broad room for future growth, we choose the absolute valuation method (FCFF). Give the company a list price of 161.03 and maintain its buy rating.
Risk hint
The prosperity of the silicon wafer industry is lower than expected; the downstream demand of power devices is lower than expected; the progress of localization is not as expected; the business development of compound semiconductors is not as expected; capacity investment and construction is not as expected.

A total of 11 agencies have rated the stock in the last 90 days, including 10 buy ratings and 1 overweight rating; the average institutional target price in the past 90 days is 148.65; according to the Securities Star valuation analysis tool, Lionwei (605358) has a good company rating of 3 stars, a good price rating of 0.5 stars and a comprehensive valuation rating of 2 stars. (rating range: 1-5 stars, up to 5 stars)

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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