\u3000\u3000 Gl Tech Co.Ltd(300480) (300480)
Event:
The company issued the announcement on the advance increase of annual performance in 2021. It is estimated that the net profit attributable to the parent company in 2021 will be 120 million yuan to 140 million yuan, with a year-on-year increase of 102.18% – 135.88%; The net profit deducted from non parent company was 75 million yuan to 85 million yuan, with a year-on-year increase of 45.58% – 66.13%.
The company’s annual net profit attributable to the parent company increased significantly year-on-year. The main reasons are as follows: (1) the company’s semiconductor sealing and testing equipment has made important progress, the domestic semiconductor dicing machine 8230 has successfully realized batch sales, and has been recognized by the semiconductor head sealing and testing enterprise for the company’s related products; Israel ADT company has also made remarkable progress in overseas sales, and the construction of global sales network has begun to take shape; (2) Advanced microelectronics equipment (Zhengzhou) Co., Ltd. and its wholly-owned subsidiary ADT company have been included in the consolidated statements of the company since May 2021. It is estimated that the net profit attributable to the parent company is 60 million yuan, of which 42 million yuan is due to the re measurement of long-term equity investment at the consolidation level at fair value, which is an extraordinary profit and loss; (3) In terms of traditional IOT safety production monitoring business, the company has achieved good performance in the market sales of new products such as ammonia escape, NOx online monitoring and carbon content in fly ash. From the single quarter of Q4, the net profit attributable to the parent company is expected to be 40 million yuan to 60 million yuan, with a year-on-year increase of 135.29% to 252.94% and a month-on-month increase of 90.48% to 185.71%. The net profit deducted from non parent company was 24 million yuan to 34 million yuan, with a year-on-year increase of 41.18% to 100.00%, a month on month increase of 26.32% to 78.95%, and a significant increase in Q4 performance.
The merger and acquisition creates the leader of China’s semiconductor dicing machine and continues to benefit from domestic substitution: the dicing machine is a device that uses blades or laser to cut processed objects such as silicon wafers, glass and ceramics with high precision. It is a key equipment for wafer cutting and WLP cutting in semiconductor rear channel sealing and testing. According to the data of China economic information network, Semiconductor dicing machines account for about 15% of the packaging equipment market. According to semi data, the global semiconductor packaging equipment market in 2021 was about US $6.99 billion. If calculated according to the proportion of 15%, the corresponding market size would be US $1.05 billion. The global dicing machine market is mainly monopolized by disco and Tokyo precision, and there is a wide space for domestic substitution. The company has successively acquired British LP (inventor of semiconductor dicing machine), LPB (the world’s leading supplier of semiconductor flower polarized core parts and air floating spindle) and Israeli ADT (the world’s third largest supplier of dicing machine), and successfully owned the technology of semiconductor dicing machine and its core parts. According to the company’s announcement, the company is the only two enterprises in the global industry and the only enterprise in China that can provide not only the whole cutting and dicing machine, but also the core component – Air spindle. According to the announcement, the 8230 products of the company’s semiconductor dicing machine have been successfully sold in batches, and have been recognized by the semiconductor head sealing and testing enterprise for the company’s related products. In addition, the first phase of the company’s semiconductor high-end equipment industry base in Zhengzhou aviation port area is expected to be put into operation in the first quarter of 2022, with an annual output of 500 dicing machines / set. The second phase of the project is under planning and design. With the continuous release of the company’s production capacity, the company’s semiconductor equipment revenue is expected to usher in rapid growth in the future and continue to benefit from the demand for domestic substitutes.
Issuing convertible bonds to expand the production capacity of air spindle and domestic replacement of core parts of fali semiconductor equipment: the company announced on December 27, 2021 that it plans to issue convertible bonds to raise no more than 400 million yuan to build a “ultra precision and high stiffness air spindle R & D and industrialization project” in Zhengzhou airport, with a construction period of 2 years, After fully reaching the production capacity, 5200 air spindles will be added every year. Air spindle is one of the core components of semiconductor equipment. It can be used in many fields, such as semiconductor, automobile painting, optical glass grinding, medical treatment, high-end machine tools, military industry and so on. The company’s supply of air spindle for semiconductor dicing machine is mainly provided by LPB company in the UK, while the dicing machine project applied by the company’s air spindle is mainly located in China, which has the problem of time-space mismatch. Moreover, due to the impact of covid-19 epidemic abroad, the supply chain is unstable, which is difficult to meet the rapid demand of the company in the future. Through the local R & D and industrialization project of air spindle, it can not only improve the production capacity of the company’s air spindle, realize localized production and effectively reduce costs, but also help to ensure the stability of the supply chain of core parts of China’s semiconductor equipment and solve the problem of neck sticking of core parts.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 579 million yuan, 1022 million yuan and 1566 million yuan respectively, and the net profit attributable to the parent company will be 131 million yuan, 226 million yuan and 358 million yuan respectively. We give the company a “Buy-A” investment rating.
Risk tip: downstream demand attenuation risk, market competition risk, product R & D is less than expected, and customer expansion is less than expected.
