\u3000\u3 Guocheng Mining Co.Ltd(000688) 596 Shanghai Gentech Co.Ltd(688596) )
Event: the company issued the announcement of 2021 annual performance express. In 2021, the operating revenue was 1.828 billion yuan, an increase of 64.86% over the same period of last year; The net profit attributable to the owners of the parent company was 176 million yuan, an increase of 41.37% over the same period of last year; The deduction of non net profit attributable to the owner of the parent company was 146 million yuan, an increase of 95.92% over the same period of last year. The company achieved a certain increase in performance in 2021, which is mainly due to the upward prosperity of semiconductor, photovoltaic Cecep Solar Energy Co.Ltd(000591) and biomedicine industries in 2021. The company seized the market opportunities and strengthened market development and product R & D. the newly signed orders increased significantly compared with the same period of last year, the steady development of business performance and the growth of sales revenue.
\u3000\u30001. R & D and design of deep ploughing process medium supply system to establish market position with comprehensive three-dimensional business model
As the forerunner of China’s process medium supply system, deeply plough the design and development of process medium system Shanghai Gentech Co.Ltd(688596) has been deeply cultivated in the process medium supply system for more than ten years, developed together with China’s process medium supply system industry, and participated in the formulation of a series of national and industrial process standards.
After years of deep cultivation and independent research and development, six core technologies have been formed. After long-term R & D investment, the company has formed six core technologies, including micro pollution control of medium supply system, fluid system design and simulation, life safety guarantee and process monitoring, synthesis, separation and purification of high-purity materials, material composition analysis and trace detection, and regeneration and recycling of key process materials.
The proportion of the company’s Pan semiconductor business has always been at a high level. In 2021q3, IC accounts for the largest proportion in the revenue industry, followed by Cecep Solar Energy Co.Ltd(000591) photovoltaic, and biomedicine and flat panel display perform better, but the overall business scale of flat panel and biomedicine will not exceed that of chip and photovoltaic. The proportion of the company’s revenue in the third quarter was about 86% for the process medium supply system, 11% for gas and 3% for others.
\u3000\u30002. Full chain product service + technical level = high customer stickiness
The company has a high level of process standards, which can meet the purity, control and safety requirements of high-value markets such as integrated circuits. In terms of purity control, the company’s equipment can better meet the process standards of integrated circuit customers, far exceeding the national standards.
The company is deeply bound with high-quality customers and goes hand in hand. The company has accumulated strong customer resources in the fields of Pan semiconductor, optical fiber communication and pharmaceutical manufacturing, including Semiconductor Manufacturing International Corporation(688981) , Changjiang storage, BOE, Sanan Optoelectronics Co.Ltd(600703) , Hengtong Optic-Electric Co.Ltd(600487) , Jiangsu Hengrui Medicine Co.Ltd(600276) , SK Hynix, Texas Instruments and other high-quality customers at home and abroad.
\u3000\u30003. The downstream application market blooms at multiple points, and the military expansion of integrated circuit production helps to open the second round of growth curve
The market demand for terminal applications is strong. In recent years, the main application fields of the company’s business, integrated circuit, photovoltaic and pharmaceutical manufacturing industries, have experienced steady growth, and even have a large growth space in the future.
Following the market opportunity, Zhengfan Co., Ltd. invested in the construction of electronic special gas and industrial gas projects. The company announced that the wholly-owned subsidiary Shanghai Laifeng and Hong Kong Zhengfan will jointly invest US $20 million to set up a new subsidiary Zhengfan Weifang in Weifang, Shandong Province to invest in the construction of electronic special gas and industrial gas projects. The total investment of the project is expected to be about 300 million yuan. The electronic special gas and industrial gas project mainly constructs industrial gas plants with a production capacity of 500 tons / day.
Investment suggestion: the company has strong customer order demand and effective cost operation control. It is estimated that the net profit of the company in 2021 / 2022 / 2023 will be 176 / 267 / 399 million yuan, maintaining the “buy” rating of the company.
Risk tip: the performance express is the preliminary accounting data, which has not been audited. The annual report data shall prevail. The sales volume of downstream products is less than expected, the capacity construction is less than expected, and the price fluctuation risk of raw materials
