Shanghai Wanye Enterprises Co.Ltd(600641) (600641)
Event: December 23, 2021, The company announced that Jiaxin Semiconductor Equipment Technology Co., Ltd. (hereinafter referred to as “Jiaxin semiconductor”), the holding subsidiary of the company, has signed a project investment agreement with the people’s Government of Xitang Town, Jiashan County. The project is collectively known as the “Yangtze River Delta integration demonstration zone” (Zhejiang Jiashan) Jiaxin Semiconductor Equipment Technology Co., Ltd. has an annual output of 2450 sets of new equipment and 50 sets of semiconductor refurbishment equipment, which will include 6 subsidiaries and 2 business divisions. In the future, the project company will mainly be engaged in the development of 8-inch and 12-inch semiconductor new equipment, such as etching machine, rapid heat treatment, film deposition, single chip cleaning machine, trough cleaning machine, tail gas treatment, manipulator and so on For production and equipment renovation, the total investment of the project is 2 billion yuan, of which the company’s investment will not exceed 800 million yuan.
Comments: the company established Jiaxin semiconductor to realize the leap from ion implanter to semiconductor equipment platform. At present, the company’s main semiconductor equipment product is the ion implanter of its subsidiary kaishitong. The first low-energy high beam ion implanter has been verified and confirmed in a large 12 inch wafer factory in China. One low-energy high beam heavy metal ion implanter and one low-energy high beam ultra-low temperature ion implanter have been delivered to customers, The high-energy ion implanter equipment is assembled according to the customer delivery plan. It has signed an order for one low-energy large beam ultra-low temperature ion implanter and one high-energy ion implanter with another 12 inch wafer factory in China, breaking the monopoly of foreign equipment manufacturers. It is not only a leading enterprise of ion implanters in China, but also a strategic supplier of China’s leading Wafer Factory Semiconductor Manufacturing International Corporation(688981) , The ion implanter has entered the mass production period.
According to the statistics of Huajing Industry Research Institute, in 2020, the sales of ion implanters accounted for about 3% of the sales of semiconductor front channel equipment, which is relatively small compared with 26.9% of thin film deposition machines, 23.9% of etching machines and 6.7% of cleaning equipment. On April 29, 2021, the company established a subsidiary, Jiaxin semiconductor, with a shareholding ratio of 80%, which is the largest shareholder, and Ningbo Xinen has a shareholding ratio of 20%, which is the second largest shareholder. In the future, Jiaxin semiconductor will be engaged in the development of new equipment such as film deposition machine, etching machine, cleaning equipment and rapid heat treatment, which can greatly expand the company’s growth space in the field of semiconductor equipment in the future, and complete the leap from “1-ion implanter” to “n-platform: etching machine, thin film deposition machine, cleaning equipment, ion implanter and rapid annealing”, The prototype of platform semiconductor equipment company has emerged.
Epitaxial endogenesis helps the company transform the field of IC core equipment, with increasingly diversified layout and platform. In recent years, the company has actively transformed from real estate business to IC core equipment business by means of “external M & A and internal growth”. In addition to the core product ion implanter, In December 2020, the company led domestic and foreign investors to complete the investment in compartsystems, the world’s leading supplier of precision components and flow control solutions in the field of integrated circuit gas delivery system (CS) is the core supplier of Applied Materials and other overseas giants. Its operating revenue is expected to reach 1 billion yuan in 2021 and will continue to maintain strong growth in 2022. In addition, as the main LP invested by Shanghai semi conductor equipment materials fund, the company has invested in Huazhuo precision technology, Shanghai Precision measurement, Hangzhou Chang Chuan Technology Co.Ltd(300604) , Shanghai Yudu, etc. cover the core parts of lithography machine – Double worktable, semiconductor front channel testing equipment, rear channel testing machine and other core equipment. The layout of the company’s IC core equipment field is becoming more and more diversified and platform.
Profit forecast, valuation and rating: the company is actively transforming the field of IC core equipment, and its subsidiary Kaston ion implanter has made a major breakthrough, which is expected to continue to increase its volume. In addition, it has set up Jiaxin semiconductor to engage in the development of new equipment and M & A compart to complete the layout of equipment core parts. We continue to be optimistic about the company’s epitaxial and endogenous growth prospects, The net profit attributable to the parent company from 2021 to 2023 is maintained at RMB 384 million, RMB 522 million and RMB 551 million respectively, and the PE corresponding to the current market value is 82x, 60x and 57x respectively, maintaining the “buy” rating.
Risk tip: customer import and verification are less than expected, wafer factory expansion is less than expected, and technology R & D is less than expected.
