Institutional research: Eight semiconductor listed companies were intensively researched by institutions

In the past month, with the release of the third quarter reports, the phenomenon of institutions flocking to semiconductor companies has reappeared. According to Wind statistics, a total of 12 semiconductor companies were investigated by institutions in October, among which Zhuoshengwei, Jingfeng Mingyuan, SiRuiPu, Xinjie Energy, etc. were investigated by many institutions.

According to statistics, these 12 semiconductor companies were surveyed by a total of 575 institutions, of which 8 semiconductor companies were intensively surveyed by institutions. In terms of institutional types, fund companies, sunshine private equity, and securities companies ranked the top three, accounting for 37.04%, 29.57%, and 23.30% respectively.

Zhuoshengwei was investigated by 132 institutions

According to Wind statistics, among the A-share semiconductor concept stocks, a total of 8 semiconductor companies have been surveyed by more than 20 institutions, among which the number of survey institutions for four companies, namely, Zhanrui Micro, Jingfeng Mingyuan, SiRuiPu and Xinjie Energy, has exceeded 50, attracting much attention from the market.

Data source: Wind

In the past month, the semiconductor company with the most institutional research is Zhuoshengwei, which has been researched by a total of 132 institutions. According to data, Zhuoshengwei is a leading company in my country's RF front-end chips. Its main products include RF switches, low-noise amplifiers (LNA), etc. Its products have entered the supply chains of well-known mobile phone brands such as Samsung, Xiaomi, Huawei, VIVO, and OPPO. Zhuoshengwei revealed information about the company's product development, gross profit margin changes, and future plans during the research.

In terms of product development, Zhuoshengwei said that the company's WiFi front-end module product - WiFiFEM integrates WiFiPA, RF switch and low noise amplifier, and has now achieved small-scale mass production on the client side. In addition, the company's RF module products including DiFEM, LFEM, LNABank, etc. have been mass-produced and shipped by smartphone brand manufacturers.

In terms of gross profit margin, Zhuoshengwei pointed out that the company has developed differentiated solutions based on the application needs of different customers, so the overall value and gross profit margin of the company's mid-to-high-end mobile phone products are slightly higher than those of mid-to-low-end mobile phones. In addition, the company's gross profit margin declined in the third quarter, mainly due to the impact of this year's epidemic. The third quarter was mainly based on the sale of existing products, which slowed down the introduction of new products to the client.

When talking about the company's growth momentum next year, Zhuoshengwei said that some of the company's module products have been introduced and mass-produced by terminal manufacturers, and the promotion of module products has laid a good foundation for the company's future growth; in addition, the company will give full play to its advantages in the field of mobile intelligent terminal RF to further improve the company's ability to operate steadily and avoid risks. With the wave of information technology upgrades and the emergence of emerging applications such as 5G communications, a new round of replacement will be driven, and the future RF front-end market will have broad room for growth.

It is worth noting that Xinjie Energy received research from 74 institutions shortly after its listing. As one of the leading semiconductor power device designers in China, Xinjie Energy revealed in the research that the company's main products, MOSFET and IGBT, are the areas with the largest gap and the most serious bottleneck in the domestic power device field; since its establishment, the company has been determined to break the import monopoly and focus on the research and development of MOSFET and IGBT products. For a long time in the future, the company will continue to make progress in these two major product areas.

In addition, Xinjie Energy said that the company has obtained 6 patent authorizations in the field of third-generation semiconductors. In terms of SiC, it is expected to launch a series of SiC diode products before the end of this year. New energy vehicles are one of the largest application areas of SiC power devices in the future, and it is also the company's key market layout direction in the future.

Five semiconductor companies' net profit increased by more than 50% this year

According to Wind statistics, among the 12 semiconductor companies surveyed by institutions, 8 companies disclosed in their third quarter reports that their net profits had achieved positive year-on-year growth, with an average net profit growth rate of 18.62%; among them, the net profit growth of four companies, namely, Zhanrui Micro, SiRuiPu, Shenzhen Technology, and Xinjie Energy, exceeded 50%.

Data source: Wind

There is no doubt that among the 12 semiconductor companies counted above, the company with the largest increase in net profit in the third quarter report is Zhuoshengwei. According to Zhuoshengwei's third quarter report, the company's cumulative revenue in the first three quarters reached 1.972 billion yuan, a year-on-year increase of 100.27%; the net profit attributable to shareholders of listed companies was 718 million yuan, a year-on-year increase of 122.37%; the company's third-quarter performance continued to grow significantly, approaching the upper limit of the forecast. It is disclosed that the company's performance hit a record high, mainly due to the arrival of the peak season for consumer electronics, and the company's sales in the third quarter grew rapidly; at the same time, the company complied with the development trend of 5G and domestic substitution, and market expansion was steadily advancing, thus driving performance to achieve rapid growth.

Among the stocks investigated by institutions, from the perspective of institutional ratings, three companies including Zhuoshengwei, Sunlord Electronics, and Goodix Technology were simultaneously rated as buy or increase by more than 10 institutions. In addition, from the perspective of institutional profit forecasts, a total of 10 semiconductor companies will have a year-on-year increase in net profit in 2020, of which five companies including SiRuiPu, Shenzhen Technology, Zhuoshengwei, Xinlai Materials, and Xinjie Energy have been predicted by institutions to have a net profit growth of more than 50%; in terms of earnings per share, five companies including Goodix Technology, Xinjie Energy, Hongda Electronics, Zhuoshengwei, and SiRuiPu have earnings per share of more than 1 yuan, among which Zhuoshengwei has the most outstanding profitability, with earnings per share reaching 5.14 yuan.

More than 80% of the surveyed "group stocks" saw a sharp rise in share prices

In terms of performance in the secondary market, among the stocks that institutions have been investigating, 10 stocks saw an increase in share prices in October, accounting for more than 80%, with an average increase of about 6% (excluding Xinjie Energy). The companies with the highest share price increases include SiRuiPu, Zhuoshengwei, Sunlord Electronics, and Hongda Electronics, with increases of 15.98%, 14.81%, 13.93%, and 11.24% respectively; only two stocks fell, namely, VeriSilicon, which fell by 7.85%, and Yaguang Technology, which fell by 10.7%.

Data source: Tongdaxin

It is worth mentioning that since Xinjie Energy was investigated by institutions on October 20, it has recently attracted a lot of institutional funds to buy. Public information shows that on October 28, the day when Xinjie Energy was listed, an institutional seat bought a large amount of 247 million yuan, ranking first on the Dragon and Tiger List, far exceeding the second buy of 172 million yuan. The next day, the institutional seat appeared in the Dragon and Tiger List again, with a purchase amount of about 87 million yuan; on November 2, Xinjie Energy broke through and fell below the 5-day moving average, but the institution not only did not sell that day, but increased its position all the way. Data shows that two institutional seats appeared on the Dragon and Tiger List that day, and the net amount of institutional purchases exceeded 100 million yuan, of which the first institutional seat bought a large amount of 87 million yuan.

Researched stocks’ growth in October (excluding New Clean Energy)

Data source: Tongdaxin

In addition to New Clean Energy, Zhuoshengwei's recent performance in the secondary market is also remarkable. Since the institutional survey on October 27, Zhuoshengwei's stock price has risen by 13% in just a few trading days. It is worth noting that the recent popular 10 billion private equity Shanghai Gaoyi Asset Management Partnership (Limited Partnership) was present in Zhuoshengwei's survey. It is understood that Gaoyi Asset recently invested nearly 10 billion to build a position in Hikvision, becoming the fifth largest shareholder of Hikvision and the focus of the capital market. In terms of shareholding details, Gaoyi Linshan No. 1 Yuanwang Fund managed by Feng Liu of Gaoyi Asset holds 231 million shares of Hikvision, accounting for 2.47% of the shares. Judging from the closing price on November 4, the market value of the shares has exceeded 10 billion yuan.