\u3000\u3000 Kingsemi Co.Ltd(688037) (688037)
Event: the company issued the announcement on the advance increase of annual performance in 2021. It is estimated that the annual operating revenue in 2021 will reach 810 million yuan to 840 million yuan, with a year-on-year increase of 146.28% to 155.40%; The net profit attributable to the owners of the parent company was 74 million yuan to 80 million yuan, with a year-on-year increase of 50.53% to 63.84%; The net profit attributable to the owners of the parent company after deducting non recurring profits and losses ranged from 60 million yuan to 68 million yuan, with a year-on-year increase of 366.02% to 424.27%.
Q4’s revenue increased significantly month on month, with full orders on hand: the company’s annual revenue and net profit attributable to the parent company increased significantly year-on-year, mainly due to the continuous improvement of the prosperity of the semiconductor industry and the rapid volume of product revenue in the field of integrated circuit front wafer processing. From the perspective of Q4 single quarter, the revenue of Q4 single quarter was 263-293 million yuan, with a year-on-year increase of 125-150% and a month-on-month increase of 34.18-49.49%; The net profit attributable to the parent company was 21 million yuan to 27 million yuan, with a year-on-year increase of 425.00% to 575.00% and a month-on-month increase of 16.67% to 50.00%; The net profit deducted from non parent company was 14 million yuan to 22 million yuan, with a loss of 3 million yuan in the same period last year, an increase of – 12.50% to 37.50% month on month. Q4 performance maintained high growth, and the revenue and net profit attributable to the parent company increased year-on-year and month on month. From the perspective of orders, the company has full orders on hand. According to the summary of investor research, the amount of orders on hand by 2021q3 was 1.331 billion yuan, an increase of 73.44% over the end of 2020. Among them, the amount of new orders signed by Qiandao equipment in the first three quarters was 310 million yuan, an increase of 214 million yuan year-on-year, an increase of 221.50%; The amount of newly signed orders for Houdao equipment in the first three quarters increased by 362 million yuan year-on-year, an increase of 217.52%.
China’s scarce suppliers of gluing and developing equipment: the company mainly has two categories of products, namely gluing and developing equipment and wet equipment. The online operation of gluing and developing equipment and lithography machine is the core equipment in the wafer manufacturing process. According to the industry data provided by VLSl, the global sales of front coating and developing equipment increased from US $1.407 billion in 2013 to US $2.326 billion in 2018, with an average annual compound growth rate of 10.58%. It is expected to reach US $2.476 billion in 2023. At present, most of the market is monopolized by Tokyo electronics, Japan. The company is a scarce supplier of gluing and developing equipment in China. In the front wafer processing of integrated circuits, the company’s gluing and developing equipment has been replaced in small quantities, and has successively obtained orders from customers such as Shanghai Huali, Changjiang storage, Wuhan Xinxin core, SMIC Shaoxing, Xiamen Shilan Jike and Shanghai Jita; After integrated circuit manufacturing, advanced packaging, compound, MEMS, LED chip manufacturing and other links, the company’s products, as the mainstream models of Chinese manufacturers, have been widely used in well-known large factories in China.
The company plans to raise no more than 1 billion yuan for Shanghai Lingang Holdings Co.Ltd(600848) R & D and industrialization projects and the industrialization project of high-end wafer processing equipment in Shenyang. Among them, Shanghai Lingang Holdings Co.Ltd(600848) R & D and industrialization project plans to invest 470 million yuan to raise funds, which is mainly used for R & D and production of high-end semiconductor special equipment such as pre ARF lithography process gluing developer, immersion lithography process gluing developer and single-chip chemical cleaning machine. Shenyang high-end wafer processing equipment industrialization project plans to invest 230 million yuan to raise funds, which are mainly used for front i-line and KrF lithography process gluing and developing machine, front BARC (anti reflection layer) gluing machine and rear advanced packaging bumping preparation process gluing and developing machine. After the project is completed, the company will improve the layout of front gluing and developing equipment, improve production capacity and meet the needs of business growth.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 839 million yuan, 1.264 billion yuan and 1.883 billion yuan respectively, and the net profit attributable to the parent company will be 79 million yuan, 145 million yuan and 230 million yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: downstream demand attenuation risk, market competition risk, product R & D failure to meet the expected risk.
