CRM(688396) 申万宏源·2024-06-06 01:31Investment Rating - The report initiates coverage with a "Buy" rating for China Resources Microelectronics (华润微) [4][53]. Core Views - China Resources Microelectronics is positioned as a leading IDM semiconductor enterprise in China, focusing on power semiconductors and actively expanding its production capacity in wide bandgap semiconductors [17][30]. - The company has significantly increased its R&D investment, with R&D expenses rising from 450 million yuan in 2018 to 1.154 billion yuan in 2023, reflecting a commitment to innovation and technology leadership [4][27]. - The company aims for substantial revenue growth, projecting revenues of 11.4 billion yuan in 2024, 13.1 billion yuan in 2025, and 15.5 billion yuan in 2026, with a corresponding increase in net profit [6][51]. Summary by Sections Company Overview - China Resources Microelectronics is a high-tech enterprise under China Resources Group, responsible for microelectronics business investment and management, with major shareholders including China Resources Group (66.41%) and the National Integrated Circuit Industry Investment Fund (4.45%) [4][20]. R&D and Product Development - The company emphasizes R&D, with a research expense ratio exceeding 10% in 2023, and has developed leading technologies in trench SBD design, optoelectronic coupling, and BCD process technology [4][27]. - The share of products related to new energy and automotive applications has increased from 35% in 2022 to 39% in 2023, indicating a strategic focus on these growing markets [4][25]. Market Position and Product Offerings - China Resources Microelectronics holds the largest market share in the domestic MOSFET sector and is actively expanding its SiC product line, with a goal of doubling revenue from wide bandgap semiconductors in 2024 [4][38]. - The company has established a comprehensive product line for MOSFETs, covering low, medium, and high voltage ranges from -100V to 1500V [4][35]. Manufacturing Capacity and Future Growth - The company is advancing its 12-inch production line, with plans for significant capacity increases in both Chongqing and Shenzhen, expected to contribute to revenue growth in the coming years [4][47]. - As of 2023, the company has a monthly production capacity of 230,000 wafers for 6-inch and 140,000 wafers for 8-inch lines, with a new 12-inch line in Shenzhen projected to start operations by the end of 2024 [4][46]. Financial Projections - The report forecasts revenues of 11.4 billion yuan in 2024, 13.1 billion yuan in 2025, and 15.5 billion yuan in 2026, with net profits expected to reach 1.24 billion yuan, 1.45 billion yuan, and 1.71 billion yuan respectively [6][51]. - The projected average PB ratio for comparable companies in 2024 is 2.6X, with an estimated market capitalization of 642.1 billion yuan for China Resources Microelectronics, indicating a potential upside of 28% from the current market value [4][53].