Guodian Nanrui (600406): Established Capital Established Nanrui Lianyan IGBT Industrialization Progress Progress

Guodian Nanrui (600406): Established Capital Established Nanrui Lianyan IGBT Industrialization Progress Progress

Event: Recently, the company announced that it plans to invest in the establishment of NARI Lianyan Power Semiconductor Co., Ltd. with Global Energy Internet Research Institute Co., Ltd., a research unit affiliated to State Grid.

Among them the company takes 5.

59 billion investment, holding a 69% stake.

83%; Joint Research Institute contributes technology at the price of 2.

41 trillion, with a shareholding ratio of 30.

17%.

Promoting the industrialization of IGBT modules is that the company’s IGBT technology is not yet mature. The core technology and industry of IGBTs are controlled by most European and American IDM semiconductor manufacturers, especially in the high-end and high-end areas.

In recent years, about 90% of IGBT chips and modules depend on imports; IGBT modules are completely dependent on imports in applications such as railway traction, smart grids, high-voltage inverters and more than 6500V.

In April 2018, the company completed a private offering of 60 trillion raised funds, of which 16.

$ 4.4 billion “IGBT module industrialization project”.

The project construction period is 42 months. By the end of August 2019, the project has gradually invested in a progress of 1.

44%.

The establishment of a joint venture is expected to accelerate the industrialization of IGBT projects.

The United Research Institute began researching power semiconductors in 2010, and is one of the few units in China that has mastered high-voltage IGBT chip design technology.

In the field of power semiconductor devices, we have independently developed 1200V-4500V series of IGBTs, FRD chips and devices, of which 3300V / 1500A crimp-type and welding-type IGBT devices, master core technologies such as complete set design and preparation, and break through foreign technology monopoly.

By cooperating with the United Research Institute, it will help reduce the company’s risk of IGBT power device technology research and development and mass production of products, guarantee low and medium voltage, and accelerate the development and industrialization of high-voltage IGBT and other power semiconductor chips and modules.

State Grid is ubiquitous in the construction of electric power Internet of Things.

The company has information and communication technology and smart grid technology, and achieves dual full integration in the field of power grid.

In the past 10 years, the accumulation of informatization and intelligence in smart grid construction has led to the company becoming the main force in the construction of ubiquitous electric power IoT. The company has connected and swapped in camps, smart terminals, IoT agents, and integrated energy service management and control systems.It has technical and product advantages.

In early 2019, the company set up a special research team to fully participate in the State Grid Ubiquitous Electricity Internet of Things construction plan and special plan design.

According to the company’s GM’s development plan, in the future, 31 GM’s key development directions will be promoted, including 15 unified construction projects of China Net, 13 GM special pilot projects, and 3 innovation research projects of the company.

The company’s ICT business is expected to continue to grow rapidly.

The company’s ICT business covers grid production management, dispatch management, information security, comprehensive information 厦门夜网 and communication supervision, communication equipment and systems, real-time databases, big data application analysis, and quantum confidential communication.It supports smart grid and ubiquitous electric power IoT construction.Core strength.

From the perspective of the construction plan of the flooding of the State Grid, the information and communications investment is expected to reach more than 300 billion yuan in the next five years. In this field, Guodian NARI and SITC each have their own strengths. The percentage of successful bids in the past is basically the same.80%.

2019 is the first year of flooding and promotion. Since the construction tasks were issued in April, technical verification, piloting, and 5G base station sharing and co-construction, and special bidding in 3 provinces have been launched successively.

We expect that GM’s related investment planning is expected to be launched in 19Q4 in a centralized manner, and construction tasks will be launched simultaneously and quickly. The company’s ICT business is expected to achieve rapid growth in GM’s investment in the future.

Investment recommendation: Buy-A investment rating, 6-month target price of 30.

00 yuan.

We expect the company’s revenue growth from 2019 to 2021 to be 13 respectively.

2%, 22.

2%, 15.

3%, net profit growth rate was 8 respectively.

5%, 25.

0%, 21.

7%, EPS is 0.

98, 1.

22 and 1.

49 yuan.The company is the world’s leading power grid intelligent information leader and the main force in the construction of ubiquitous electric power Internet of Things.

Maintain BUY-A investment rating with 6-month target price of 30.

00 yuan, equivalent to 25 times the dynamic price-earnings ratio in 2020.

Risk reminders: 1) slow progress of joint and cooperation between the two parties; 2) decline in bidding or direct pace of the two networks; 3) intensified competition in the industry;