Wuhan Jingce Electronic Group Co.Ltd(300567) (300567)
Over the years, we have invested heavily in semiconductor equipment and continued to make breakthroughs in new products
In recent years, the company has concentrated excellent resources to deeply cultivate semiconductor equipment, and the film thickness measurement equipment has taken the lead in making a breakthrough. In only one year, the company has achieved a breakthrough in both integrated and independent models. In 2019, 2020 and 2021h1, the revenue of semiconductor equipment jumped from 7 million to 65 million, and then exceeded 65 million in the first half of the year, with strong growth. The company’s layout of OCD equipment and electron beam detection equipment has also been in the customer verification stage, and is expected to develop into the second and third growth points of semiconductor equipment.
The barrier of wafer testing equipment is very high, which is the key to the construction of “go to line a”
Since 2019, China has been facing a growing scientific and technological blockade, especially in the semiconductor field representing high-tech and cutting-edge technology. Independent research and development and the construction of “go to line a” are imperative. Testing equipment involves optics, electricity, materials, machinery and other comprehensive disciplines, with high technical barriers. KLA Tencor of the United States accounts for more than 50% of all kinds of wafer testing equipment. In addition, the market is mainly controlled by applied materials, Tokyo electronics, nano and other Japanese manufacturers. China’s construction of “go to line a” or even pure domestic line, wafer testing equipment is an unavoidable difficulty. The company is one of the few companies to cultivate this sector in China and will undertake the important task of localization. According to semi data, in 2020, the global semiconductor equipment market scale was US $71.1 billion, of which the front channel test equipment market scale accounted for 8.45%, reaching US $6.01 billion, and the rear channel sealing test equipment market scale accounted for 5.4%, reaching US $3.85 billion.
The lithium battery equipment product line continues to expand and gradually enters the harvest period
Based on its own AOI testing and other technical advantages, the company began to enter the lithium battery equipment industry in 2019. Starting from chemical capacity separation equipment, BMS test equipment and pack test equipment, the company has an income of 80 million in 2020. The company continues to expand the upstream and midstream equipment, and the product line coverage is constantly improved. In recent years, with the rapid development of new energy vehicles and electrochemical energy storage, lithium battery enterprises have continued to expand production rapidly, and the company’s orders have entered an accelerated period.
The traditional main industry display panel equipment continues to grow at a high speed, and the leading advantage is becoming more and more obvious
The company’s display panel business maintained a high-speed growth of more than 40% except for the slight growth due to the epidemic last year. On the one hand, the company continues to break through the market share of key customers and continues to improve; On the other hand, it extends to the upstream core parts, and is expected to maintain a high-speed growth trend in the future.
Investment advice
As a scarce testing equipment enterprise in China, the company is the main force in the localization of semiconductor equipment and is expected to take the lead in benefiting from the wave of wafer line construction in China. In addition, the company’s display panel testing equipment and lithium battery equipment are also growing at a high speed. It is estimated that the net profit of the company in the year of 21 / 22 / 23 is 296 million, 599 million and 1.103 billion, and the corresponding P / E is 66x, 32x and 18x. Considering the segment valuation, we give the company a target market value of 32.9 billion yuan in 2022, which is covered for the first time and given a “recommended” rating.
Risk statement
Semiconductor equipment technology R & D is less than expected risk; Risk of over concentration of customers; Industry competition intensifies risk
