At the 2021q4 performance presentation, lamresearch showed that driven by the accelerated digital transformation of the global economy and daily life, the demand for wafer manufacturing equipment continued to increase, achieved record revenue and EPS in calendar years 2021, and achieved record performance in all segments. At the same time, the company stressed that the shortage of supply chain in the quarter of March was intensifying, Orders on hand have increased for the fifth consecutive quarter.
Core content of the meeting
The industry demand is high, and all business lines will reach a record level in 2021. In 2021, the company’s revenue was US $16.5 billion, with a year-on-year increase of 39%; EPS hit a record high of US $32.46, with a year-on-year increase of 59%, including record revenue from system product sales and CSBG customer support business. In terms of system product sales, the business revenue of NAND, DRAM and foundry / logic increased by double digits in 2021. At the same time, the expenditure of foundry / logic was higher than that of memory, and Lam gained more market share of etching and deposition. In terms of CSBG customer support business, the number of installed cavities of the company increased by about 13% over the calendar year 2021, reaching about 75000 units, while the revenue of single cavity increased by nearly 24% year-on-year, close to twice the increase of the number of cavities.
The supply chain shortage intensified, and some expected revenue in December quarter was blocked. Due to the delivery delay of some key parts manufacturers in December, the company’s revenue in December quarter was $4.23 billion, slightly lower than that in September quarter. Memory systems accounted for 58% of the system revenue in December quarter, down from 64% in the previous quarter, which was mainly driven by the 1z and 1-alpha node investment of DRAM, which accounted for 23%. Investments in NAND, foundry, logic and other fields account for 35%, 31% and 11% of the company’s system revenue. At the same time, the company emphasizes that the supply chain shortage is exacerbated due to the shortage of logistics and transportation, talent employment, chips and components, and the delayed revenue in the quarter of March 22 will continue to increase.
The market expansion of new products is progressing well. In 2021, the company’s vantex dielectric etching system became the fastest-growing new etching product in history. It is expected that vantex shipments will continue to grow by 2022, and the total revenue will double year-on-year. Vectordt for back deposition has achieved the recording of 3dnand devices with more than 200 layers among all customers, further proving the company’s leading position in 3D miniaturization. The company has achieved several important leading advantages through selective etching, materials and surface treatment solutions, including the application of GAA, foundry / logic customers and the first selective etching in DRAM. The growing demand for angstrom grade accuracy is driving the company’s more adoption of selective edge solutions, which will double the revenue of selective etching in 2022.
Investment advice
Due to the superposition of factors such as industrial transfer, equipment localization and high industry outlook, the recommended combination of semiconductor equipment sector continues to be strongly recommended: shengmei Shanghai, Wuhan Jingce Electronic Group Co.Ltd(300567) , Advanced Micro-Fabrication Equipment Inc.China(688012) , Naura Technology Group Co.Ltd(002371) , Shanghai Wanye Enterprises Co.Ltd(600641) , Kingsemi Co.Ltd(688037) , Hangzhou Chang Chuan Technology Co.Ltd(300604) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) , etc.
Main risks of rating
The uncertainty of geopolitical friction; Uncertainty of parts supply chain security.
