Sunking Technology: The target revenue will increase by 50% in 2024, and the upward inflection point is officially established!

Recently, Sunking Technology released its 2023 performance report. In 2023, the company's sales revenue will be about 1.05 billion yuan, a year-on-year increase of 15%, and the gross profit margin will be 32%, a year-on-year increase of 4 percentage points. Affected by this, the company's profitability has increased against the trend, and the net profit attributable to the parent company is about 31.55 million yuan, a year-on-year increase of 31%. At the performance briefing, the company also said that it would strive to achieve the business target of 50% revenue growth in 2024.

The company's performance inflection point was formally established. Behind the strong earnings growth momentum is a leap forward in the company's development in the fields of ultra-high voltage and power semiconductors.

Another breakthrough in the field of DC transmission

The company provides anode saturation reactors, power capacitors and other device products for power transmission and distribution projects, and its business mainly involves UHVDC transmission and flexible DC transmission projects.

The power grid transmission and distribution business is the company's basic plate and ballast. In 2023, the performance of the power grid transmission and distribution business is very bright. Thanks to the intensive implementation of UHV projects, the company's sales revenue in the field of DC transmission increased by 43% year-on-year to 250 million yuan.

Haitong Securities' research report believes that UHV construction is speeding up, Jinshang-Hubei, Longdong-Shandong, Hami-Chongqing, Ningxia-Hunan DC UHV projects have started, and it is expected to start construction of 5 DC UHV and 2 AC UHV in 2024. Guolian Securities Research Institute pointed out that according to the 14th Five-Year Plan, the mainland will build at least 12 DC UHV, with an estimated total investment of more than 240 billion yuan. The power grid investment plan for the "15th Five-Year Plan" is also expected to be released. According to the 15th Five-Year Plan, it is expected that 3-4 DC UHV lines will be started on average every year, and the industry will continue to prosper. According to the 2025 grid-connected plan, this year and next year will be a stage of rapid growth in industry investment. As a leader in the industry, the company has deeply benefited from the dividends of UHV intensive construction in the past year, and has achieved related orders and delivery growth.

It is worth mentioning that at the beginning of 2024, the company's two flexible DC support capacitors successfully passed the national technical appraisal of new products, preparing for the batch engineering application of such products.

"Flexible straight" refers to the Flexible Direct Current Transmission Technology (VSC-HVDC). On the basis of traditional DC transmission technology, this technology uses high-power IGBT to replace thyristors, and uses pulse-width modulation technology for power conversion and transmission, which has strong advantages in reactive power compensation ability, no need to support power supply, no commutation failure, and flexible power control. It can be said that flexible DC transmission technology is the application of a new generation of power electronics technology in the field of power transmission, and it is the future of power electronics technology, with broad development space. However, the Guohai Securities Research Institute pointed out that in the flexible DC transmission technology, its key flexible converter valve and other key equipment, power electronic devices are highly dependent on imported products, and there are still problems such as core technology being controlled by people and low localization rate, and the development of national production is slow. The progress made by Sunking Technology has accelerated the pace of large-scale domestic substitution of DC support capacitors in the flexible straightening project, and also laid the foundation for the company to further open up the development space of flexible DC transmission business.

The backbone of domestic substitution of high-end power semiconductors

In addition to the rapid growth in the field of power electronics technology, the company's self-developed power semiconductors have also made rapid breakthroughs. In 2023, the company's potential in power semiconductors will be initially realized, and the revenue of self-developed power semiconductor business will be 81.45 million yuan, a year-on-year increase of 105%, doubling!

Guohai Securities pointed out that Sunking Technology is a leading and influential supplier of power electronic devices and system integrators in the industry, as well as an international leading innovative R&D enterprise. According to public information, three subsidiaries of Sunking Technology were selected as the first batch of specialized, special and new small and medium-sized enterprises in Zhejiang Province in 2023, which can show that the company's R&D strength has been officially recognized.

It is worth noting that Sunking Technology has been deeply involved in the field of power semiconductors for many years, and has made a breakthrough in this field in recent years.

From the perspective of the development trajectory of power semiconductors, high power, high frequency (miniaturization) and low power consumption are the direction of technology evolution. At present, power devices mainly include power diodes, bipolar transistors, power MOSFETs and IGBTs. Among them, MOSFETs and IGBTs are the products with the largest proportion among power discrete devices.

In 2020, Sunking Technology officially released the first IGBT product, and the following year, the company's first IGBT production line was completed and put into operation, and the i20 IGBT chip and ED package IGBT module were mass-produced. In 2023, Sunking Technology will launch a number of new products such as 1700V IGBT and FRD chips, ST package IGBT modules, HEEV package SiC modules, EVD package IGBT modules, etc. It is reported that the SiC module is a vehicle-grade product. In addition, Sunking Technology has launched the research and development of multiple series of chips and modules with voltages of 1200V and 1700V, including Si IGBTs and SiC MOSFETs, which are expected to be launched in 2024. This means that the company is not only moving towards higher-end IGBTs, but also cutting into the third-generation semiconductor track.

According to the global mainstream technology level, high-end discrete devices such as SIC MOSFETs and IGBTs are more cutting-edge and high-tech categories among power devices. Due to the higher technical threshold and stronger process complexity of such products, there is still a large gap between the overall industrial technology level of the mainland and the global leading level, which is the core area of domestic substitution of power semiconductors. It is not difficult to see that the company is moving rapidly towards the goal of "world-class domestic power semiconductor manufacturer".

Sunking Technology's semiconductor products have successfully entered the industrialization stage and have been recognized by the downstream. In 2023, the company will achieve batch supply to 38 customer groups, an increase of 36% over the same period last year. "94% of the sales revenue comes from the fields of new energy power generation, energy storage and electric vehicles with high barriers to entry and demanding quality requirements. The management of Sunking Technology said at the performance briefing.

It is worth mentioning that in 2023, in addition to continuously improving the product layout and increasing the product penetration rate, Sunking Technology will also continue to expand its production capacity. At the performance briefing, the management of Sunking Technology disclosed that in 2024, the company will accelerate the expansion of production capacity and strive to complete the completion of the third IGBT module and the first silicon carbide module packaging and testing production line. After the completion of the production line, it is conducive to the company's more efficient internal collaboration and production research and development, and accelerate the rapid launch of new products and new processes. In the future, the company is expected to accelerate towards a new stage of large-scale industrialization of high-end power semiconductors.

The 2023 performance report marks the establishment of the inflection point of Sunking Technology's performance. Behind the performance is the company's continuous development and innovation in the field of direct power transmission and power semiconductors. As the company gradually establishes a leading position in the industry, it is likely to achieve even more impressive performance growth in the future.