Star Semiconductor (603290) First Coverage: Rapidly Growing IGBT Module Expert
The scarce IGBT domestic standard is in a rapid growth period.
Founded in 2005, Star Semiconductor has been focusing on the design, development and production of IGBT-based power semiconductor chips and modules. The main product is IGBT modules, which use IGBT chip self-control capabilities.
Star is a leader in domestic substitution in the IGBT field. The production and sales have increased rapidly in the past three years.
In 2018, the company’s revenue grew at a compound rate of 49.
At 88%, the compounded growth rate of net profit attributable to mothers reached 112.
The high-growth upstream and downstream industrial control and power industry and the demand of the new energy industry have exploded, especially the IGBT business income of new energy vehicles has grown rapidly, and the corresponding revenue growth rates in 2017/2018 reached 83.
45% / 87.
48%, accounting for the company’s overall revenue has gradually increased.
IGBT is at the front end of power semiconductors and has a wide application market.
IGBT combines the advantages of MOSFET (Insulated Gate Field Effect Transistor) and BJT (Bipolar Transistor). It is a mature product of the power semiconductor industry. Since its introduction in the 1980s, it has replaced industrial power devices in industrial applications.In consumer applications, the scope of applications has gradually expanded. At present, it is widely used in industrial control, new energy, inverter home appliances, etc., especially in new energy vehicles, IGBT is the core device of the whole vehicle.
The global IGBT is dominated by Europe and Japan, and Star strives to break through.
The global IGBT market is basically merged by European and Japanese companies, and the competitiveness is not more than ten.
According to IHS statistics, the top 10 suppliers of IGBT modules in 2018 accounted for about 80% of the market. Star Semiconductor ranked eighth in the global IGBT module market and was the only Chinese company to enter the top ten with a market share of 2.
In the early stage, as a domestic IGBT leader, Star Semiconductor had a good development trend and its city share gradually increased.
China’s IGBT market accounts for 40% of the global 北京夜生活网 market. From the perspective of import substitution, the growth space for Star cracks to penetrate.
With the expansion of the company’s size, the scale effect is significant.
The effect of scale is reflected in two aspects: ① The purchase cost and production cost have fallen.
In particular, the company has gradually realized self-control of IGBT chips. As the largest proportion of raw materials, the increase in the rate of self-control of IGBT chips will effectively reduce operating costs.
② The cost rate is reduced.
The company’s net profit margin was 4 in 2015.
69% increase to 17 in the first half of 2019.
60%, which originally came from the decline in sales expense ratio and management expense ratio brought about by the scale effect. In the future, the company’s scale effect has potential potential to be tapped.
Profit forecast and estimation.
As a scarce domestic IGBT supplier, the company benefits from the expansion of downstream demand and domestically produced alternatives to customers, and will continue to maintain better growth in the future.
We predict company 2019?
2021 operating income is 7.
6.3 billion / 9.
8.9 billion / 12.
83 ppm, an increase of 12 in ten years.
94% / 29.
69% / 29.
74%; net profit attributable to mother is 1.
2.9 billion / 1.
6.9 billion / 2.
22 ppm, an increase of 33 in ten years.
02% / 31.
57% / 31.
Taking into account the company’s excellent growth and domestic leading position, we believe that driven by strong fundamentals, the company will get a higher forecast premium and give a “buy” rating.
Risk warning: IGBT chip independent research and development is less than expected; sales of new energy vehicles are less than expected; major overseas manufacturers cut prices.