Shengmei Shanghai (688082)
According to WeChat official account of Sheng Mei semiconductor equipment, two orders of 12 cavity single chip cleaning equipment for UltraCSAPSV were announced from the main international semiconductor manufacturer in the US. The two devices are expected to be installed in the American factory of the customer for its advanced process. The first saps order is an evaluation equipment, which is used to further verify the cleaning performance of the equipment and finally determine the specific configuration of the equipment. It is planned to be delivered in the first quarter of 2022. The second saps order is a mass production equipment for its mass production line, which is scheduled to be delivered in the second quarter of 2022.
Key points supporting rating
The company adheres to the SAPS cleaning technology with more than 10 years of technological differentiation and innovation achievements, and has been applied in advanced processes by international front-line customers. Shengmei’s proprietary spatial alternating phase shift (SAPS) wafer cleaning technology adopts the alternating phase change of megasonic wave in the gap between megasonic wave generator and wafer. Different from the fixed megasonic wave generator used in previous generations of megasonic wafer cleaning equipment, SAPS technology can move or tilt the generator when the wafer rotates, so that the megasonic wave energy can be evenly transmitted to the wafer (even if the wafer is warped). Saps technology was first verified on DRAM devices, and then successively applied to Chinese front-line customers such as 3dnand, power devices and sensors. This time, two saps equipment orders for advanced processes from American front-line customers show that saps technology also has good application prospects in logic circuit customers and even advanced processes.
The marketing strategy has been successful and the customer globalization strategy has been implemented. Since October, the company has successively obtained orders from international front-line customers, including the demo order of saps equipment from a major global semiconductor manufacturer. It is expected that Q1 will be assembled in China in 2022; The demo order of ultra ecpmap copper plating equipment from a mainstream semiconductor manufacturer in Asia is expected to be delivered in early 2022; Two orders for ultracpr wet degumming equipment from one of the world’s leading IDM chip manufacturers were obtained. The success of the company’s overseas market promotion strategy lies in that the original differentiation technology is first verified at several key clients in Asia, and then promoted to world-class manufacturers. The successful verification and application development of the two megasonic equipment will bring more cooperation opportunities with this customer and other major customers in the United States.
Scarce technology differentiation, product platform and customer globalization. The company’s long-term revenue target is that 50% of its sales will come from outside the Chinese mainland and 50% from the Chinese mainland market. At present, the company’s overseas income accounts for less than 10%, and according to SEMI data, as of 2021Q3, the demand for overseas semiconductor equipment market outside Chinese mainland accounts for about 73% of the global semiconductor equipment market, and is in the 70%-80% range for a long time. The company is expected to rely on the advanced international advanced technology of SAPS, TEBO, TAHOE, copper plating, vertical furnace, etc., which are differentiated and innovated. Continue to break through and expand international front-line customers and their market share, lead the internationalization of local semiconductor equipment enterprises and move towards the first echelon of international brands.
Valuation
It is estimated that the company’s revenue from 2021 to 2023 will be RMB 1.558/25.22/3.633 billion respectively, and the net profit will be RMB 265/4.20/585 million, maintaining the buy rating.
Main risks of rating
The uncertainty of international geopolitical friction and the uncertainty of customer verification cycle.
