\u3000\u3000 Novoray Corporation(688300) (688300)
Main points:
The company has been focusing on the filling sub circuit for 38 years and its performance has increased rapidly
The predecessor of the company, Donghai silicon powder factory, was established in 1984, focusing on the R & D, production and sales of silicon powder for nearly 38 years. The silicon powder filler produced by the company is widely used in semiconductor and new energy vehicle related businesses such as epoxy plastic packaging material (EMC) and underfill material for chip packaging, copper clad laminate (CCL), thermal interface material (TIM), electronic packaging material, etc. at the same time, it can also be used in adhesives for environment-friendly and energy-saving buildings, honeycomb ceramic carriers, UHV electrical insulation products Emerging fields such as 3D printing materials and dental materials. Customers mainly include Shengyi Technology Co.Ltd(600183) , Nanya New Material Technology Co.Ltd(688519) , Jiantao group and other world leaders in copper clad laminates, as well as well-known enterprises of epoxy plastic sealing materials such as Sumitomo Electric, Hitachi Huacheng and Panasonic electric. The company has made intensive efforts in the field of silicon powder, continuously dug the moat, broke the monopoly of foreign high-end products, and its performance has continued to grow at a high speed. The compound growth rate of net profit attributable to the parent company in 15-20 years has reached 43.5%.
Domestic substitution + high prosperity in downstream and huge market space for spherical silicon powder under the support of double logic
The company’s silicon powder products can be mainly divided into angular silicon powder and spherical silicon powder. Among them, spherical silicon powder has better thermal conductivity and electromagnetic performance, and ASP is far superior to angular silicon powder. At present, China’s spherical silicon powder still depends on foreign imports, with a huge gap between supply and demand. According to the data released by China powder technology network, electrochemical Co., Ltd., Japan Longsen company and Japan Nippon Steel Co., Ltd. together account for 70% of the global market share of spherical silicon powder. Only China and Huafei electronics can mass produce spherical silicon powder, and its price has certain advantages over overseas competitors. At the same time, with the generation upgrading of server chips, the materials of supporting CCL will also be upgraded. The spherical silicon powder filler produced by the company has lower transmission loss and heat dissipation performance than traditional angular silicon powder, and the demand may be further increased in the future.
Actively expand production, maintain the leading position and continue to expand the leading edge
In 2019, it raised 108 million yuan to build a silicon powder production base project, adding 7200 tons of spherical silicon powder production capacity; In 2020, the project of electronic grade new functional materials will be implemented, mainly producing spherical aluminum oxide powder, submicron spherical silicon powder and liquid filler, with a design capacity of 9500 tons / year; In August 2021, the company plans to raise 300 million yuan to build a spherical powder production line with an annual output of 15000 tons for high-end chip packaging, 133.6% higher than that in 2020.
Investment advice
We expect the net profit attributable to the parent company to be 177, 243 and 317 million yuan from 2021 to 2023, with the corresponding P / E ratio of 45.79, 33.50 and 25.64 times. The company is given a “buy” rating for the first time.
Risk tips
The production capacity is less than expected and the downstream demand is less than expected.
