Hubei Dinglong Co.Ltd(300054) (300054)
Event: (1) Hubei Dinglong Co.Ltd(300054) subsidiary Dinghui microelectronics introduced an important investor, CCB trust, which invested 210 million yuan. After the transaction, it held 8% equity of Dinghui microelectronics, and the pre investment valuation of Dinghui microelectronics reached 2.5 billion yuan. (2) The company held the first new product conference and released four new CMP materials such as polishing pad, polishing fluid and nano abrasive particles, as well as polyimide, photosensitive polyimide, packaging ink and other products for OLED display.
Comments: the introduction of CCB trust investment is conducive to deepening the expansion and future development of Hubei Dinglong Co.Ltd(300054) CMP polishing pad and other businesses, broadening the company’s financing channels and enriching the company’s capital strength; The release of new products has further enriched the company’s semiconductor material product line and expanded the company’s advantages in the localization route of high-end semiconductor materials. We are optimistic about the rapid development of the company driven by printing consumables + photoelectric semiconductor materials. In the future, photoelectric semiconductor materials will become the main growth Beijing Dynamic Power Co.Ltd(600405) , driving the company to grow into a platform enterprise of high-end materials.
1. The dominant position of CMP polishing pad business in the Chinese market has been established, with continuous significant growth month on month (2) the polishing pad business revenue of 21q3 company was 89 million yuan, with a month on month increase of 39.21% and a net profit of 0.45%
Billion yuan, an increase of 126.9% month on month; The net profit margin of polishing pad business of 21q1-q3 company was 25.69% / 30.89% / 50.35% respectively. While the revenue increased rapidly, the net profit margin also increased significantly. (3) In July, the company’s monthly sales of CMP polishing pads exceeded 10000 for the first time, of which 12 inch products accounted for more than 80% and became the mainstream of applications. Related products were steadily sold in large quantities on multiple clients. The company has become the first supplier for some customers.
2. The client feedback of polishing liquid and PI slurry is good, which is about to be measured in an orderly manner
(1) CMP cleaning fluid for copper manufacturing process has been tested by many customers and has passed the verification of various test indicators. The customer’s feedback is good and has begun to enter the mass test of client products; the capacity construction of 2000 ton production line for cleaning fluid phase I of Wuhan headquarters is expected to complete the equipment commissioning and start trial operation in the fourth quarter of this year; (2) Softshow YPI products have continuously and stably obtained ton batch orders, laying the foundation for next year’s scale; the client tests of new products PSPI and ink in the pilot stage have given good feedback.
3. The revenue of printing and copying consumables increased year-on-year, and new growth points of various products are expected
(1) In the first three quarters, the company’s printing and copying general consumables segment achieved an operating revenue of 1.455 billion yuan, a year-on-year increase of 20%. The upstream chip business grew significantly, the advantages of color toner and recycled ink cartridge business were stable, and the toner drum market competition was still fierce, but the toner drum business of Chaojun technology had a recovery trend based on the loss in the first half of the year. (2) In terms of toner cartridge products, it is expected that after the competition in the consumables industry has eased, the balance between supply and demand has been restored, and the price has been adjusted back to a reasonable range, the cost advantage of the company’s toner cartridge products will be fully reflected; in terms of ink cartridge products, under the background of vigorously developing the remanufacturing industry, strengthening the recycling of renewable resources and promoting the comprehensive green transformation of economic and social development, recycled ink cartridge products Will usher in sustained market development opportunities.
4. Investment suggestion: we are optimistic that optoelectronic semiconductor materials will become the main growth Beijing Dynamic Power Co.Ltd(600405) of the company in the future, driving the company to grow into a platform enterprise of high-end materials. We maintain the profit forecast for Hubei Dinglong Co.Ltd(300054) : the revenue from 2021 to 2023 is RMB 2.39/33.0/4.25 billion, and the net profit from 21 to 23 is RMB 290/4.5/640 million. At the same time, the target price was maintained at 34.83 yuan / share and the “buy” rating was maintained.
Risk warning: changes in macroeconomic environment; Intensified industrial competition; The progress of the project is not as expected; The development of new business is not as expected.
