\u3000\u3000 Zhejiang Mtcn Technology Co.Ltd(003026) (003026)
The company is a professional supplier of silicon materials, with strong demand for products, and gives a “buy” rating for the first time
The company has been deeply engaged in the field of silicon single crystal materials for semiconductor discrete devices for ten years, and its products cover 3 ~ 6-inch silicon rods and grinding tablets. At present, the silicon wafer industry and discrete device industry continue to boom with strong demand. The company has strong technical strength, excellent profitability and stable customer resources. At the same time, it actively expands production and has sufficient growth momentum. We expect the company to realize net profit attributable to the parent company of 130 / 170 / 257 million yuan and EPS 1.5 billion yuan respectively from 2021 to 2023 30 / 1.70/2.58 yuan, and the current share price corresponds to pe45 6 / 34.9 / 23.1 times, with “buy” rating for the first time.
Industry Overview: semiconductor silicon wafer has a large market space and strong downstream demand
Silicon wafer market is the largest part of semiconductor material market. According to semi data, the silicon wafer market accounted for 35% of the semiconductor material market in 2020, ranking first in semiconductor materials. According to semi statistics, the global silicon wafer Market in 2020 was US $11.2 billion. According to icmtia statistics, the scale of China’s silicon wafer Market in 2019 was 17.63 billion yuan. In the future, with the increasing demand for 5g, Internet of things, cloud computing and other applications and policy support, the scale of China’s semiconductor silicon wafer market will continue to grow. The silicon wafer industry has high barriers, high concentration and high share of foreign leaders. According to the data of core thought, the Cr5 of silicon wafer will reach 87% in 2020. However, in terms of small silicon wafers, silicon wafers of 6 inches and below are mainly provided by Chinese suppliers.
Leading technology and cost, raising investment and expanding production, and the prospect is promising
The company has a number of core technologies and patents. It optimizes the production process through magnetic field crystal drawing, re feeding direct drawing, diamond wire multi wire cutting, high-precision heavy doping and other technologies, effectively improves the production efficiency, superimposes the regional cost advantages of the company and reduces the production cost. The supplier certification threshold in the silicon wafer industry is high. At present, the company has a wide range of customer groups and has formed long-term and stable cooperative relations with well-known enterprises in the industry such as Suzhou Good-Ark Electronics Co.Ltd(002079) , CETC 46 Institute, Nantong Gaoxin, Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , Shandong Jingdao microelectronics and so on. On December 8, 2020, the IPO of the company raised about 350 million yuan, of which about 240 million yuan was invested in the single crystal silicon wafer project for high-end discrete devices and ultra large scale integrated circuits (the total investment of the project is 615 million yuan). Based on the expansion and reproduction of the existing business, the project is involved in the field of silicon wafer for integrated circuits, which is conducive to giving play to the scale effect and improving the market share. The prospect of the company is promising.
Risk tips: the industry boom is less than expected, the company’s production expansion is less than expected, and the price fluctuation risk of raw materials.
