Silan Micro's compound annual growth rate of more than 30% in the next three years

Silan Micro (600460) 2010-2012 consolidated earnings per share forecast value of 0.27 yuan, 0.41 yuan and 0.46 yuan, corresponding to dynamic price-earnings ratio of 55, 36 and 32 times; currently there are 9 analysts tracking, 1 analyst It is recommended to “strong buy”, 7 analysts recommend “buy” rating, and 1 analyst gives “wait and see” rating with a combined rating of 2.00.

The annual report exceeded expectations. In 2009, the company achieved operating income of 959 million yuan, an increase of 2.89%, belonging to the parent company's owner income of 76.625 million yuan, an increase of 465%, corresponding to EPS 0.19 yuan, performance exceeded expectations. Non-recurring profit and loss accounts in the 2009 statement have a greater impact on performance. Analysts believe that due to the improvement of the market environment and changes in the company's internal conditions, the impact of non-recurring gains and losses on the company will be weakened, and the company's performance this year will reflect the business results more fully.

The profitability of each product line has been restored. In 2009, the company's profitability was fully recovered. The comprehensive gross profit ratio for the year reached 28.13%, which was the best level since 2000. Among them, the operating income of power devices increased by about 15%, and the gross profit margin of 26.62% was a record high. LED chips increased by 15% and gross margin rebounded to 40.5%. The benefits of integrated circuit products benefited from a significant decline in product structure optimization across the industry, with a gross margin of 24% and better than the industry's 9% overall level.

Jiangnan Securities said that the company has entered the expansion period, with a compound growth rate of more than 30% in the next three years. Entering into 2010, the new development opportunities will enable the company to expand its capacity for its integrated circuits and LED chip manufacturing, especially for the advantageous field - full color LED chip manufacturing, plans to adopt a private placement method to raise about 600 million funds to further increase production capacity. And extended to the downstream industry chain.

Capacity expansion coincides with the power of the power products and LED business. The semiconductor industry is expected to usher in a new growth period after the recession in 2009. In particular, the growth of downstream electronic products and the pursuit of energy efficiency conversion efficiency will increase the demand for power products, and economic recovery, sports events and other factors will lead the outdoor display. The screen entered a new round of growth. Therefore, under the new environment, the company's various product lines have ushered in more market opportunities. At present, the lack of production capacity has become a bottleneck for performance growth, and it has also prompted the company to increase capital expenditures. The company's core competitiveness is the unification of design capabilities and scale advantages under the IDM model, so capacity expansion is one of the important drivers of the company's future performance growth.

The private placement will accelerate the shareholders' income, and the technology accumulation will enhance the internal strength. The company's additional issuance project is an important measure to consolidate the current market leading position in the field of LED outdoor display chips. Once the project is completed, its production capacity will be doubled compared with the current one, and it will help the company to expand into the downstream packaging field and realize the increase of added value of products. The project will accelerate the shareholder's income. The company's enhancement of design capabilities is conducive to the competitiveness of the IDM model, and the company will enter a period of rapid growth.

Jiangnan Securities said that the company has entered a period of rapid growth: LED business will become the engine of future growth, and integrated circuit related business is expected to maintain healthy growth. The growth of this year's results is relatively certain. The private placement projects and R&D investment will enhance the company's scale and internal strength and maintain the Buy rating.

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