[Hua Hong Semiconductor (1347.HK)] Wallowee production capacity continues, 8 -inch price increases exceeding expectations -the first quarter performance review (Fu Tianzi) in 2022

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[Hua Hong Semiconductor (1347.HK)] Wallowee production capacity continues, 8 -inch price increases exceeding expectations -the first quarter performance review (Fu Tianzi) in 2022

2022-05-15 06:07:05 17 ℃

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1Q22 Company achieved revenue of 595 million US dollars, an increase of 95%year -on -year, a month -on -month increase of 13%, significantly higher than the previous revenue of 560 million US dollars and a month -on -month increase of 6%. It was mainly due to the 8 -inch ASP increased by 11%month -on -month. From the perspective of the product structure, the income exception is mainly driven by simulation and power management and independent NVM income. The two increased by 24%/50%month -on -month, accounting for 20%/10%of the income. The overall gross profit margin of 1Q22 company is 26.9%, a decrease of 5.6 percentage points from the previous month, and is not as good as the guidance range of 28%-29%, mainly due to the audit adjustment and bonus increase of a government subsidy. The operating profit was US $ 85 million, an increase of 11%month -on -month; the net profit attributable to the mother was $ 103 million, an increase of 211%year -on -year, a year -on -month decrease of 23%, and the corresponding net interest rate was 17%.

The company's production capacity continues to be fully loaded, and ASP has increased significantly

1Q22 Company's 8 -inch production line achieved a revenue of 333 million US dollars, an increase of 33%year -on -year, and an increase of 3%month -on -month. The company's 8 -inch factory space was close to saturation. The 1Q22 capacity utilization rate continued to maintain a high level. The ASP brought by the improvement of product portfolios improved. The company's 12 -inch production line currently produces 65K/m, and the 1Q22 is smoothly available for full production. The capacity utilization rate reaches 104%, and wafer shipments have increased by 20%month -on -month. At the same time, 12 -inch ASP increased by 6%month -on -month. The line realized income of 262 million US dollars, an increase of 27%month -on -month, and the income ratio expanded to 44%. The smooth volume of 12-inch driving its business loss has further narrowed, and the 12-inch operating profit margin increased from -5%of 4Q21 to -1%.

Under the optimization of product portfolios, ASP is expected to further improve, and it is optimistic about the continuous expansion of the company's production capacity for a long time.

Benefiting from the demand for downstream MCUs, IGBT, and super knots, we expect that the capacity utilization rate of 2Q22 will still maintain a high level, but it will be affected by the epidemic; %, We believe that ASP is mainly driven slightly. At the same time, the price increase is conducive to the improvement of the company's profitability. The company guides the 2Q22 company's gross profit margin range of 28%-29%. The company is expected to be expanded to 94.5k/m at the end of 22, and the new expansion capacity is expected to be officially put into production at 4Q22 or early 23 years. At the same time, the company issued an announcement to be listed on the Science and Technology Board of RMB on the 3m22. We believe that the company is expected to launch the construction of the new plant Huahong Nine Factory to further increase the 12 -inch production capacity. In the long run, the company's continuous expansion is expected to open a new round of growth space.

Risk reminder: The capacity of a new 12 -inch capacity is not as good as expected; the valuation of the semiconductor sector is systematically fluctuated.

Release date: 2022-05-13