Investment Rating - The report sets a target price of HKD 8.80 for the company [1]. Core Viewpoints - The company is positioned as a key supplier of core components in the power transmission and distribution, new energy, and industrial sectors, with a focus on IGBT and IGBT modules [1][3]. - The company has made significant strides in domestic IGBT production, aiming to reduce reliance on foreign suppliers and enhance its market position [3][44]. - The company is expected to benefit from the ongoing development of high-voltage direct current (HVDC) projects and the increasing demand for self-developed IGBT products in various sectors [4][59]. Summary by Sections Company Background - The company was established in 2000 and has evolved into a leading supplier of power electronic devices and systems, focusing on IGBT technology since 2019 [14][15]. - It has become a major supplier for HVDC projects in China, participating in nearly all domestic HVDC projects [2][24]. Business Segments - The company’s products are categorized into power semiconductors and supporting devices, with significant applications in HVDC, flexible DC transmission, and industrial sectors [20][26]. - In 2023, the revenue breakdown was 39.5% from power transmission, 5.4% from electrified transportation, and 48.7% from industrial applications [52]. IGBT Development - The company focuses on developing IGBT products with voltage ratings between 1200V and 1700V, utilizing domestic technology to achieve local substitution [3][44]. - The company has launched several IGBT modules and is expected to introduce third-generation power semiconductors in the first half of 2024 [4][45]. Financial Performance - In 2023, the company reported total revenue of CNY 1.06 billion, with a significant increase in gross margin in the power transmission segment, reaching 48% [52][53]. - The company aims for revenue targets of CNY 1.6 billion and CNY 2 billion for 2024 and 2025, respectively, with expected net profits of CNY 70-80 million in 2024 [4][59]. Market Outlook - The company is well-positioned to benefit from the national grid's planning and the growing demand for self-developed IGBT products in the renewable energy and electric vehicle sectors [4][59]. - The IGBT market is projected to grow significantly, with China being the largest consumer of power semiconductors, accounting for 30%-40% of the global market [34][40].
赛晶科技：IGBT行业新星，国产替代任重道远