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士兰微
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电子元器件行业
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2011-03-09
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10.80
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--
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--
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11.35
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5.09% |
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11.35
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5.09% |
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详细
Silan Microelectronics reported it generated sales of RMB 1519M in 2010, up 58.23%YoY; net profits attributable to the parent group amounted to RMB 256M, up 234%YoY; EPS was RMB 0.59. The company also said it plans to distribute a cashdividend of RMB 0.6 to shareholders for every 10 shares they held in 2010. 2010 performance slightly beat our expectation. Net profits after non-recurring itemscame in at RMB 223M, a 3095% YoY increase. EPS stood at RMB 0.59, slightlyhigher than our estimates and well above market expectations. Earnings fell in 4Q10 due to seasonality. The LED segment experienced weak salesand saw gross margin decline to 43.4%. The IC segment’s gross profit margin slippedto 27%. Sales of electronic component also dropped, but gross margin climbed 4 pptsto 37.1%. We think demand will continue to be soft in 1Q11. Due to last year’s highbase, YoY earnings growth will be slow, but will present an upward sloping trend in2011. The company has a clear development strategy to grow into the largest proprietarybrand semi-conductor manufacturer in China. To achieve this goal, the companyplans to expand its production capacities to 180k pieces / month, from current 125kpieces / month. The move will fuel growth in sales of electronic components andanalog circuits. White chips and high-end LED products are the focus of LED business development. Currently, the LED business is progressing steadily and is expected to makesignificant headways in 2Q11. In addition, 8 MOCVD production machines will go intoproduction in 2Q11, creating a boost for sales. The company disclosed 2011 operating targets, which we believe are relativelyconservative. The company expects revenue to reach RMB 2B in 2011 and to keepcosts under RMB 1.7B. We maintain an OUTPERFORM rating and earnings forecasts. From our estimates,the company will achieve sales of RMB 2178M and RMB 2980M in 2011-2012,indicating YoY growth of 43% and 37% respectively. Net profits are forecasted atRMB 256M, RMB 355M and RMB 493M, and EPS is expected at RMB 0.59, RMB0.82 and RMB 1.14, respectively, for 2010-2012. Considering the company’s stronggrowth potential and the valuations of industry peers, we offer the company a 30x11PE and set our 12-month target price at 25x 12PE.
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