军用电子元器件大本营，平台化发展前景光明

Zhenhua Science & Technology（000733） Equity Research·Company Research·Military Electronics 1 / 37 东吴证券（香港） 请务必阅读正文之后的免责声明部分 [Table_Main] Zhenhua enjoys promising prospect with broad layout in military electronics Buy (Initiation) Forecast & Valuation 2021A 2022E 2023E 2024E Revenue (RMB mn) 5,656 7,569 9,379 11,250 Growth (YoY %) 43% 34% 24% 20% Net profit (RMB mn) 1,491 2,426 3,014 3,623 Growth (YoY %) 146% 63% 24% 20% EPS (RMB) 2.88 4.68 5.82 6.99 P/E (X) 42.49 26.12 21.02 17.49 Investment Thesis ◼ China Zhenhua Science & Technology (CZST), leader in the military electronics industry, will very likely benefit from rapidly growing demand of military equipment during the period of the 14th Five-Year Plan. CZST maintains stable earnings due to its diversified product lines with extensive downstream applications. CZST’s traditional businesses, including Chip capacitor, inductor and resistor, contributed to the majority of its revenue. The semiconductor, integrated circuit and module power businesses, which see rapid growth and great market potentials, will become the main driving force for CZST. The company successfully reversed its losses in new energy business in 2021 and began to gain profits. ◼ CZST developed the high-end semiconductor businesses in advance as a new growth engine. CZST accelerates the R&D of high-end products such as high-performance Si-based IGBT chips, solid relays, RF transformers, cam rotary switches and etc. CZST achieved key technology breakthrough in design and manufacture of high-voltage and large-current IGBT chips. CZST entered military IGBT business through equity participation of Semi-Future in 2018. It has 34 IGBT products by the end of 2021. CZST’s IGBT products is comparable in performance to those of Infineon, implying that import substitution of 6th generation of IGBT products is totally achievable. In April 2022, CZST increased its investment to Aurora with cash Rmb18mn to strengthen independent R&D capabilities and promote MOSFET chips’ development. With high-end equipment and core technology blocked by developed countries, high value-added and high-performance products will very likely become the new growth enginee of CZST. ◼ CZST announced Rmb2.5bn investment in high-end semiconductor capacity expansion and intelligent production. In April 2022, CZST raised Rmb2.5bn through non-public offering to invest in capacity expansion project of power semiconductor device (Rmb790mn), intelligent manufacturing capacity improvement project of hybrid integrated circuit (Rmb720mn), production project of new resistor-capacitor unit (Rmb140mn), intelligent production project of relay and control units (Rmb380mn), research and industrialization project of switch and CDU (Rmb288mn) and replenishment of working capital (Rmb200mn). These projects are likely to help CZST gain more market share in high-end semiconductor sector and improve its operational efficiency and profitability. ◼ Earning Forecast & Rat