ASMI showed at the 2021q4 performance presentation that the company’s sales revenue and orders in 21q4 hit a record high again. The sales revenue in the whole year of 21 reached 1.73 billion euros, a year-on-year increase of 34%, and maintained a double-digit growth rate for five consecutive years, including 1.408 billion euros of equipment sales, a year-on-year increase of 38%, mainly due to the strong growth of ALD product line, and EPI also showed strong growth.
Sales revenue and orders hit a record high in the fourth quarter. The revenue of 21q4 was 491 million euros, which was at the upper limit of the range of 470500 million euros in the previous revenue guidance, with a month on month increase of 11% and a year-on-year increase of 40%, although 21q4 still faced a difficult situation in the supply chain. By business division, the sales of 21q4 equipment increased by 43% year-on-year, of which the sales led by ALD reached a record high. The new orders of 21q4 reached 645 million euros, a year-on-year increase of 70%, and the orders on hand reached 811 million euros at the end of the year, an increase of 150% compared with the same period of the previous year.
In recent years, it is one of the few enterprises that have changed the pattern of global wafer manufacturing process equipment industry. The net sales volume in 21 years was slightly higher than 1.7 billion euros, with a year-on-year increase of 34%. Among them, the equipment sales increased by 38% at constant exchange rate, mainly due to the strong growth of ALD product line, which continues to account for more than 1 / 2 of the company’s equipment revenue, and EPI also showed strong growth. ASMI is positioned as a high-end film deposition equipment. It obtains competitive advantages in ALD, EPI, furnace tube and other market segments and enjoys growth beyond the industry, breaking the competitive pattern of the original global wafer manufacturing process equipment industry.
ALD and EPI continue to promote the application of new products and processes. The company’s ALD business growth in 2021 is very strong. I believe it can maintain a leading market share. At the same time, it also increases investment in R & D for ALD’s next-generation process nodes and makes a strong breakthrough. One of the applications discussed on investor day is aldgap technology, which seamlessly fills the gap with high aspect ratio. With the evolution of 3dnand to advanced structure, aldgap is becoming an important application demand. It is expected to be sold for the first time in 2022, and some applications can enter mass production at the end of 22 or early 23. At the same time, by the end of 2022, a small batch of GAA applications of ALD may be put into operation, and many next-generation technologies will be launched in the future. The growth of EPI in 2021 is also very strong, thanks to the increased demand of advanced CMOS market and the market recovery in the fields of simulation and power management. An important achievement in 2021 is that the company’s interfacees tool won a second customer using GAA process in the field of advanced CMOS. The company also launched a new interfaceesa tool, which mainly solves the application of 12 inch EPI process in manufacturing such as simulation and power management, which is expected to become another strong driving force for EPI sales from 2022. For PECVD and vertical furnace, the company’s strategy is to invest selectively. A400duo, an 8-inch (200mm) high capacity vertical furnace launched in 2019, has made very successful progress in 2021 and won several new customers in China.
Maintain ALD’s global leading position and continuously improve the market share of EPI and other products. Benefiting from the application of advanced process GAA process and the demand for ultra aspect ratio thin film deposition technology of memory devices, the market of monolithic ALD equipment will increase from US $1.5 billion in 2020 to US $3.1-3.7 billion in 2025, and the market of EPI equipment will also increase from US $800 million in 2020 to US $1.5-1.8 billion in 2025, Among them, the switching of advanced process FinFET structure to GAA process can increase the market space of monolithic ALD and EPI by US $1.2 billion. In 2020, the global market share of the company’s single-chip ALD will be about 55%, the target will exceed 55% in 2025, the market share of EPI will be 15% in 2020, and the target will reach more than 30% in 2025.
The supply chain remained tight in the first half of the year, and the annual income distribution is expected to be low before and high after. Looking forward to the first half of 2022, the supply chain situation is expected to remain tight. At the level of comparable exchange rate, the revenue of 22q1 is expected to be 500530 million euros, with a year-on-year increase of 27% – 35%, while the revenue of 22q2 will further grow steadily. Based on the visibility of current orders, it is expected that the revenue in the second half of 2022 will be higher than that in the first half of the year.
Investment advice
Recommended semiconductor equipment sector, recommended combination: shengmei Shanghai, Wuhan Jingce Electronic Group Co.Ltd(300567) , Advanced Micro-Fabrication Equipment Inc.China(688012) , Naura Technology Group Co.Ltd(002371) , Shanghai Wanye Enterprises Co.Ltd(600641) , Kingsemi Co.Ltd(688037) , Hangzhou Chang Chuan Technology Co.Ltd(300604) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) ;
Recommended semiconductor parts and components, recommended combination: Shanghai Wanye Enterprises Co.Ltd(600641) , Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) , Kunshan Kinglai Hygienic Materials Co.Ltd(300260) , Thinkon Semiconductor Jinzhou Corp(688233) , Konfoong Materials International Co.Ltd(300666) .
Main risks of rating
The uncertainty of geopolitical friction; Uncertainty of parts supply chain security.
