Sichuan Injet Electric (300820)2024-12-19 00:38Investment Rating - The report initiates coverage with an "Outperform" rating for the company [4]. Core Views - The company is expected to see rapid growth in RF power supply products for the semiconductor sector starting in 2025E [2][4]. - The company has established itself as a leader in industrial power supply, focusing on power electronics technology applications across various industries, including power control supplies and special power supplies [2][4][21]. Summary by Sections Company Overview - The company has over 20 years of innovation, successfully developing several industry-first products, including the first fully digital single crystal furnace heating DC power supply in China and the first 36-pair multi-crystal silicon reduction furnace power supply globally [2][4][21]. - The company has a strong brand presence in the domestic power control and special industrial power supply equipment market [2][4]. Financial Performance - The company reported revenues of 1.28 billion yuan in 2022 and 1.77 billion yuan in 2023, with year-on-year growth rates of 94.34% and 37.99%, respectively [47]. - The projected revenues for 2024E, 2025E, and 2026E are 2.22 billion yuan, 2.61 billion yuan, and 2.91 billion yuan, reflecting year-on-year growth rates of 25.56%, 17.35%, and 11.84% [4][47]. - The net profit for 2024E, 2025E, and 2026E is expected to be 550 million yuan, 670 million yuan, and 806 million yuan, with growth rates of 27.45%, 21.82%, and 20.36% [4][47]. Market Dynamics - The company’s orders for the first three quarters of 2024 were approximately 1.4 billion yuan, showing a decline primarily due to a significant drop in the photovoltaic sector, which saw orders decrease by over 50% year-on-year [3][32]. - Orders from the semiconductor electronic materials sector increased by over 10% year-on-year, amounting to 328 million yuan [3][32]. - The company aims to expand its overseas market for photovoltaic power supplies and increase sales in semiconductor electronic materials and new energy charging pile businesses [3][32]. Growth Opportunities - The partnership with leading semiconductor equipment companies is expected to accelerate the domestic substitution process for RF power supplies [4][37]. - The company is focusing on expanding its sales scale in semiconductor electronic materials, which is anticipated to grow rapidly [4][50]. Product Segmentation - The company’s revenue from the photovoltaic sector was 974 million yuan in 2023, maintaining a market share of over 70% in the domestic market [27][43]. - The revenue from the semiconductor electronic materials sector has been increasing, with a significant growth rate of 69.35% in 2023 [47][50]. - The company has developed a series of electric vehicle charging equipment, achieving recognition in the industry for quality and innovation [25][29].