The stock price of Fuman Electronics has soared: How long can the chip concept stocks be popular?

In the first half of 2021, the global chip industry is in a state of capacity shortage and rising prices. In addition, under the epidemic, the trend of the semiconductor industry's transfer to China is accelerating. The two are superimposed. The production capacity of China's semiconductor industry chain is very tight, the prosperity is very high, and the performance growth rate is naturally very strong.

According to the data, chip-related A-share companies including Ming Microelectronics, Fuman Electronics, Xinyuan Microelectronics, Tongfu Microelectronics, Changjiang Electronics Technology, and Ziguang Guowei have disclosed their performance forecasts for the first half of 2021, all achieving year-on-year performance. increase.

[Fuman Electronics has a brilliant performance]

Among them, the most dazzling one is Fuman Electronics (300671.SZ). On the evening of July 4, the company disclosed its performance forecast. It is expected to make a profit of 300 million yuan to 330 million yuan in the first half of 2021, a year-on-year increase of 1124.56%- 127.02%. The company said that the expected performance increase is due to the new product results, coupled with strong product-market demand, the company's product sales, gross profit margin, and net profit attributable to shareholders of listed companies during the reporting period have increased significantly compared with the same period last year.

In addition, during the reporting period, it is estimated that the impact of non-recurring gains and losses on net profit is about 9 million yuan, and the impact of the same period last year is about 10.673.8 million yuan.

Looking back at Fuman's electronic financial report, it can be found that the company will usher in an explosion in 2020 and achieve a profitability reversal. There will be a performance explosion in 2021. In 2018 and 2019, the company's net profit attributable to the parent company had negative growth, a decrease of 7.9% and 31.99%, respectively. In 2020, the company's profitability will increase quarter by quarter, and by the end of the year, the net profit attributable to the parent will increase by 172.64% year-on-year. In the first quarter of 2021, the company achieved revenue of 266 million yuan, a year-on-year increase of 164.36%; net profit attributable to the parent was 0.62 billion yuan, a year-on-year increase of 831.5%.

At the time of the profit bursting, the secondary market gave positive feedback on the company's performance, and Fuman Electronics became a "big bull stock" that has seen its stock price soared recently. The stock price of Fuman Electronics has risen by 60.89% in the past week; after excluding the new stocks listed in the last six months, as of the close of June 30, Fuman Electronics ranked first in the market with a monthly increase of 131.96%; the stock price this year The increase reached 318%, further extending the long-term axis, and the stock price of Fuman Electronics has increased by more than 700% since 2020.

[Product price increases successively]

At present, Fuman Electronics' main business is chip design, packaging, and testing. The main products include power management, LED screen control, and driver, MOSFET, MCU, fast charging protocol, RFID, radiofrequency front-end, and various ASICs. These products are used in various terminal electronic products such as individuals, homes, and automobiles.

Since September and October last year, the global semiconductor production capacity shortage has continued. Obtaining sufficient production capacity from wafer fabs and packaging and testing plants has become the new core competitiveness of a chip design company. The advantage of Fuman Electronics is that it has its own packaging and testing plant and only needs to get the fab. When the company accepted the survey in early June, it said, "We have signed an agreement with the fab, and have already given a deposit for annual production capacity in the future, and the other party has a guarantee on how much capacity it will give each month."

Recently, Fuman Electronics revealed that the company's production capacity is in a tight state. In 2020, the company's LED lights, LED control and drive chips, and power management chips accounted for 46.67% and 34.96% of the company's revenue, totaling 81.63%.

It should be noted that the increase in gross profit margin, in addition to new product listing factors, the price increase is also an important driving force. Fuman Electronics recently stated that the company has begun mass production of 12 inches. With the continuous release of production capacity, quarterly performance and profits will continue to hit new highs. In terms of production capacity, the 12-inch production capacity can reach 3000-5000 pieces next year, and the overall production capacity may be doubled in the second quarter of next year. In terms of prices, fabs are constantly increasing prices and orders for this year and next year are full. They will be out of stock until next year, and the company will adjust prices accordingly.

[Plan to purchase office space for 300 million yuan]

At the end of January, Fuman Electronics put out a fixed increase plan of 1.05 billion yuan to raise funds for the "5G radio frequency chip, LED chip and power management chip production and construction project", "R&D center construction project" and supplementary working capital.

Fuman Electronics stated that the company has accumulated many years of experience in the fields of 5G communication and radio frequency chips in recent years, and the 5G communication and smartphone markets are now booming. Combined with the company's strategy of developing new products and finding new business growth points, this financing is necessary and reasonable.

Regarding LED control and drive chips, Fuman Electronics believes that the products raised this time are small pitch/MiniLED control and drive chips, which are a new generation of products based on the company's existing technology and products. Compared with the corresponding products of the previous two fundraising projects, the LED chip controlled by this fundraising investment has a smaller LED lamp bead spacing and is used in the field of higher performance LED display; the power management chip involved in this fundraising project belongs to the company Expansion of existing products.

Regarding the proposed use of 300 million yuan of raised funds (28.57% of the financing) for the purchase of 3000 square meters of office space, Fuman Electronics previously stated that it intends to use the R&D site to replace the existing leased site, and the new R&D center is conducive to concentration Office and talent recruitment will benefit from the industrial cluster effect. As of the end of the first quarter, the company has 439 R&D personnel, and the per capita office area is 10.41 square meters, a sharp increase from 5.27 square meters at the end of 2020.