Benefiting from the strong market demand, Leon Micro has outstanding performance in the first half of the year. On the evening of July 15th, Leon Micro announced that it is expected to achieve a non-net profit of 178 million to 190 million yuan in the first half of 2021, a year-on-year increase of more than two times; compared with the same period of the previous year, an expected increase of 127 million to 139 million Yuan, a year-on-year increase of 166.37%-182.11%.
On the morning of July 16, the reporter learned from Leon Micro that since the third quarter of last year, the company had sufficient orders on hand and its capacity utilization rate reached full capacity. Relevant persons in the company told reporters that the company will take 12-inch silicon wafers and 6-inch gallium arsenide microwave radio frequency chips as its main development directions in the future, and the production capacity of related projects is in a ramp-up period.
The announcement shows that the production capacity of Leon Micro’s Quzhou silicon wafer base has been substantially released, and the comprehensive scale benefits have been highlighted. It is reported that Leon Micro currently has two subsidiaries in Quzhou: Jinruihong Technology and Jinruihong Microelectronics. The former is the company’s IPO project 8-inch semiconductor wafer project, and the latter is a fund-raising project “an annual output of 1.8 million integrated circuits with 12 inches. Silicon”.
In March of this year, Leon Micro raised no more than 5.2 billion yuan through non-public issuance of shares, and the construction of fund-raising projects including an annual output of 1.8 million 12-inch silicon wafers. It is understood that the current project has built a monthly production capacity of 100,000 pieces, and it is expected that all production capacity will be completed by the end of 2021. According to the plan, after the project is fully put into production, it is expected to have an annual production capacity of 1.8 million 12-inch silicon wafers for integrated circuits, and it is expected to achieve annual sales revenue of 1.521 billion yuan. The company said that the current product yield index is very satisfactory.
It is worth mentioning that the company’s “6-inch gallium arsenide microwave radio frequency chip project” has established an annual production capacity of 70,000 chips and is currently under commissioning. The relevant person of the aforementioned company said that the production capacity of the project is in a ramp-up period, and it is expected to achieve full production next year or the following year.
The reporter noted that the price of Leon Micro’s related products has been raised for several rounds in the first half of the year. It is reported that the company’s power semiconductor products carried out the first round of price increases at the beginning of this year, and the second round of price increases in early April; the 6-inch silicon wafer products have undergone price increases in early 2021, and the second round of price increases is currently underway. Relevant persons in the above-mentioned company said that due to demand factors and cost factors, the company’s price adjustments follow the market.
Leon Micro’s main business is semiconductor silicon wafers, semiconductor power devices, and compound semiconductor radio frequency chips. Prior to Leon Micro said, from the perspective of the rapid growth of the demand side and the expansion speed of the supply side, the prospects of semiconductor power devices are promising in the next 3-5 years.
Guolian Securities pointed out that the silicon wafers produced by Leon Micro cover 6-12 inch mainstream products. Downstream customers include SMIC, Huahong Grace, China Resources Microelectronics, Silan Micro and other well-known fabs; in addition, power devices have passed Bosch China, China, and other automotive electronics customers are certified as one of the few domestic companies with automotive regulatory-level qualifications. The overall layout of the upstream and downstream is conducive to the company’s process and quality control from the raw material end, which helps to shorten the R&D verification cycle.
The semiconductor chip industry is booming, and companies in the electronics industry have benefited a lot. Judging from the disclosed half-year performance forecast, the top three performance surges are: Fuman Electronics (300671.SZ) is expected to increase its net profit in the first half of the year by 1124.56%-1247.02% year-on-year, and Ming Microelectronics is expected to increase its net profit in the first half of the year by 832.38%-935.98. %, Jingrui shares (300655.SZ) is expected to increase its net profit in the first half of the year by 456.58%-623.56%.