\u3000\u3000 Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) (603078)
Main points:
Key investment points
1. China’s leader in wet electronic chemicals, the introduction of state-owned assets and the improvement of comprehensive strength. Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) was founded in 2001 and has been deeply engaged in wet electronic chemicals for more than 20 years. The company is a professional service provider of wet electronic chemicals with large production scale, complete varieties and complete supporting facilities in China. In November 2021, the company introduced Zibo Xingheng tusong Holding Co., Ltd. through “stock transfer + fixed increase”, and Zibo Finance Bureau became the actual controller of the company. The addition of state-owned assets has greatly improved the company’s credit endorsement and financing ability. At the same time, Shandong Province is China’s traditional chemical industry province. Zibo has many chemical raw material suppliers. The introduction of state-owned assets will help to solve the problem of large price fluctuation of upstream raw materials and improve the company’s profitability.
2. There is a large market space for wet electronic chemicals, and there is a strong demand for domestic substitutes
1) large industry space: in 2020, the global market scale will reach US $5.084 billion, the market scale of China’s wet electronic chemicals will reach 10.062 billion yuan, and the CAGR of wet electronic chemicals will reach 15.36% from 2011 to 2022; 2) Wide application: as a key basic chemical material in the electronic industry, wet electronic chemicals are widely used in flat panel display, semiconductor and photovoltaic Cecep Solar Energy Co.Ltd(000591) fields. The industry pattern is stable. Various favorable policy documents clarify that wet electronic chemicals are a national strategic emerging industry. 3) Large substitution space: the global wet electronic chemical market is mainly controlled by European, American and Japanese enterprises. Compared with foreign wet electronic chemical manufacturers, Chinese manufacturers have room for improvement in production technology, production process and formula technology, but they have certain advantages in localization supporting facilities and services. Especially in high-end markets such as 12 inch wafers and G8 The wet electronic chemicals of high-generation flat panel displays of more than 5 generations are required to reach G5 level, and the localization rate accounts for only about 10%. According to the scale of sales revenue, the leading companies of wet electronic chemicals Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) and Hangzhou Greenda Electronic Materials Co.Ltd(603931) account for only 5.44% and 5.79% of China’s whole wet electronic chemicals market in 2020.
3. The production capacity of the three industrial bases is released, and G1-G5 is fully covered
The company is located in Jiangyin, Jiangsu, Meishan, Sichuan and Zhenjiang, Jiangsu. In 2021, the company’s Sichuan Meishan project and Jiangsu Zhenjiang phase I project officially entered the production stage. Sichuan Meishan 60000 ton wet electronic chemicals project is mainly aimed at flat panel display customers in Southwest China. The production base is close to Chengdu Chongqing electronic industry group, which effectively solves the problem of long-distance transportation cost and ensures the safety of wet electronic chemicals; Jiangsu Zhenjiang phase I 58000 ton project is mainly aimed at customers in the semiconductor field in the Yangtze River Delta and Anhui. The main grade of the product is g4-g5, and the goal is the 12 inch high-end semiconductor market, which helps the company improve its core competitiveness.
Investment advice
The company is a leading enterprise of wet electronic chemicals in China, with broad development space in the future. We estimate that the operating revenue of the company in 2021 / 2022 / 2023 will be 770 million yuan / 1.101 billion yuan / 1.618 billion yuan, and the net profit attributable to the parent company will be 50 million yuan / 131 million yuan / 201 million yuan, corresponding to 98x / 37x / 24x respectively. For the first time, give a “buy” rating
Risk tips
Price fluctuation of upstream raw materials; The production capacity of Sichuan base and Zhenjiang base is lower than expected; The R & D of new products is less than expected; Uncertainty exists in G5 Technology
