Shanghai Wanye Enterprises Co.Ltd(600641) (600641)
Event: on December 22, the company announced that Jiaxin semiconductor, the holding subsidiary of the company, signed a project investment agreement with the people’s Government of Xitang Town, Jiashan County, The project is collectively known as the “annual output of 2450 sets / set of new equipment and 50 sets / set of semiconductor refurbishment equipment project of Jiaxin Semiconductor Equipment Technology Co., Ltd. in the Yangtze River Delta integration demonstration zone (Zhejiang Jiashan)”. The total investment is estimated to be 2 billion yuan, of which Shanghai Wanye Enterprises Co.Ltd(600641) investment will not exceed 800 million yuan.
Jiaxin semiconductor was established, and the layout of the semiconductor core equipment platform company was gradually improved: the company joined hands with Ningbo Xinen to establish Jiaxin semiconductor. The company invested 80% of Jiaxin semiconductor in currency as its largest shareholder, and Ningbo Xinen invested 20% of the shares with the ownership of semiconductor related technology intangible assets as intangible assets. Jiaxin semiconductor’s investment project will form an R & D and manufacturing base with an annual output of 2450 sets of new equipment and 50 sets of semiconductor refurbished equipment in the future, which can provide a variety of integrated circuit core front-end equipment covering etching, film deposition, rapid heat treatment and annealing, cleaning equipment and so on, further consolidating the main business of semiconductor core equipment accessories platform.
After KFA, the platform company began to show signs: the company previously completed the acquisition of compartsystems, the leader of gas transmission system, in conjunction with domestic and foreign investors. Compartsystems products are used for accurate gas transmission systems required for oxidation / diffusion, etching, deposition and other equipment in integrated circuit manufacturing process, It is one of the few companies in the world that can complete all links of precision processing of parts and components in this field. It is the core supplier of global semiconductor equipment leading companies such as applied materials. After completing the acquisition of compartsystems, the leader of gas transmission system, the company once again worked with Ningbo Xinen to improve the platform layout.
American giants monopolize the ion implanter market and maintain the safety of the supply chain. Import substitution is imminent: ion implantation is one of the four core equipment of semiconductor front process, with extremely high barriers to entry, second only to lithography, At present, most of the market is dominated by American giants applied materials and Axcelis (asheri) monopoly. The participants of Chinese ion implanters are mainly kasiton and Zhongkexin. Among them, kasiton is the leader of Chinese ion implanters, and the founding team is the leader in this field. It mainly focuses on low-energy high beam ion implanters and high-energy ion implanters. Its product performance is comparable to that of overseas mainstream models, and has the ability of import substitution.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 1.207 billion yuan, 1.524 billion yuan and 2.107 billion yuan respectively, the net profit attributable to the parent company will be 412 million yuan, 474 million yuan and 628 million yuan respectively, and the EPS will be 0.43 yuan, 0.5 yuan and 0.66 yuan respectively, maintaining the “Buy-A” investment rating.
Risk tip: the global semiconductor boom is lower than expected; Wafer plant capital expenditure is lower than expected; The technology research and development of Chinese equipment companies is less than expected; Risk that the localization progress is less than expected.
