\u3000\u3 Shengda Resources Co.Ltd(000603) 306 Hmt(Xiamen)New Technical Materials Co.Ltd(603306) )
The leader in the field of airbag, based on tob, marches into TOC and opens up room for growth. The company is a leading enterprise in China’s automotive passive safety industry. Founded in 2002, its products cover automotive airbag, airbag cloth, seat belt, etc. in the first three quarters of 2021, the company achieved an operating revenue of 812 million yuan, a year-on-year increase of 32.16%. The company has strong R & D strength and first-class airbag technology, level and cost performance in the world. As a secondary supplier in the automotive industry, the company’s downstream direct customers are Ningbo Joyson Electronic Corp(600699) , Jinzhou Jinheng, Autoliv and other airbag giants. The end users cover mainstream automobile brands. The company is promoting cost reduction and efficiency increase through factory intelligent transformation, In addition, based on the tob field, the company has made efforts to the TOC field and launched Intelligent Airbag clothing and head airbag products for the elderly. The market prospect is good and adds momentum to the growth of the company. Benefiting from the continuous improvement of automobile passive safety demand, the value of single vehicle airbag is still rising. As a leading enterprise in the industry, the company is expected to seize the market opportunity and continue to grow.
Semiconductor photoresist is the key field of semiconductor industry, and there is a wide space for domestic substitution. According to semi and SIA data, in 2020, the global semiconductor photoresist market scale is about 1.9 billion US dollars, including g-line / i-line and KrF photoresist market of about 900 million US dollars and ARF photoresist market of about 800 million US dollars. According to cision data, the National Semiconductor photoresist market scale will reach 2.48 billion yuan in 2020. Semiconductor photoresist has various types and high technical barriers. It is a neck link in semiconductor materials, and the localization rate is low. The global semiconductor photoresist is mainly monopolized by Japanese JSR, shinyue chemical, Tokyo Yinghua, Fujifilm and DuPont. Among them, only JSR and Tokyo Yinghua can supply the most high-end EUV photoresist in batch. Major enterprises in China’s semiconductor photoresist field include Beijing Kehua, Xuzhou Bokang, Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) , Jiangsu Nata Opto-Electronic Material Co.Ltd(300346) , Crystal Clear Electronic Material Co.Ltd(300655) , Phichem Corporation(300398) , etc. among them, Beijing Kehua KrF adhesive has achieved stable batch supply, and Jiangsu Nata Opto-Electronic Material Co.Ltd(300346) ARF adhesive has passed the National 02 special acceptance. On the whole, there is still a large gap between China’s photoresist and overseas technology, and there is a wide space for domestic substitution.
Invest in Xuzhou Bokang to build the second growth pole of lithography materials, and the release of production capacity promotes the growth of performance. In 2021, the company laid out the lithographic materials business sector in the form of industrial fund. The subsidiary Dongyang Kaiyang holds about 26% of the shares of Xuzhou Bokang and is the second largest shareholder of Xuzhou Bokang. Founded in 2010, Xuzhou Bokang has been deeply engaged in the field of photoresist materials for more than ten years. It has realized an independent and controllable supply chain from the localization of monomer, photoresist special resin, photoresist and end product photoresist. At present, it has developed about 80% of the types of KrF and ARF photoresist monomers in use in the world. It is a rare vertical integration enterprise in the field of semiconductor photoresist in China. Recently, the new production line of Xuzhou Bokang Pizhou has been put into operation gradually. According to the announcement of the company, the estimated output value of the 1100t lithographic material production capacity of the new plant is 1-1.2 billion yuan for photoresist monomer, 400500 million yuan for photoresist, 200300 million yuan for other lithographic materials and 150200 million yuan for pharmaceutical intermediates. The net profit of Xuzhou Bokang from 2021 to 2023 will not be less than 115 million yuan, 176 million yuan and 245 million yuan. In addition, the company and Xuzhou Bokang set up Dongyang Xinhua in a joint venture. It plans to expand the photoresist production capacity and categories, with abundant growth momentum.
Profit forecast and investment rating: the prosperity of automobile passive safety industry has bottomed out and warmed up, the company’s capacity utilization has improved + product categories have been widened, and the main industry has a solid growth foundation. In addition, the company’s new factory capacity release is expected to continue to increase the company’s profits by investing in Xuzhou Bokang’s entry into the field of semiconductor lithography materials, We estimate that the company’s revenue from 2021 to 2023 will be 1.045/11.97/1.339 billion yuan respectively, the net profit attributable to the parent company will be 2.47/3.32/450 billion yuan respectively, and the EPS will be 0.81/1.08/1.47 yuan / share respectively. The current share price corresponding to PE will be 44 / 33 / 24 times respectively. It will be covered for the first time and given a “buy” rating.
Risk warning: the downstream demand is less than expected, the photoresist import and verification progress is less than expected, the upstream supply chain is unstable, the competition pattern is deteriorating, and the performance commitment is less than expected.
