Shanghai Wanye Enterprises Co.Ltd(600641) (600641)
1、 Event overview
On December 23, Shanghai Wanye Enterprises Co.Ltd(600641) announced that Jiaxin semiconductor, a holding subsidiary, signed an investment agreement with Xitang government of Jiashan County to build a project with an annual output of 2450 sets of new equipment and 50 sets of refurbished equipment, with a total investment of 2 billion yuan.
2、 Analysis and judgment
Strong alliance, go hand in hand
Jiaxin semiconductor was founded on April 29, 2021. It was founded jointly by Shanghai Wanye Enterprises Co.Ltd(600641) and Ningbo Xinen. Shanghai Wanye Enterprises Co.Ltd(600641) invested 80% in currency as the largest shareholder, while Ningbo Xinen invested 20% in the ownership of technical intangible assets as the second largest shareholder, led by Dr. Zhang Rujing. Dr. Zhang Rujing founded Semiconductor Manufacturing International Corporation(688981) in 2000, Xinsheng semiconductor in 2014 and Qingdao Xinen in 2018. He has many years of technical experience and industrial chain resources. This technology shareholding and strong alliance is expected to open up the technical route from equipment to process and develop customer channels for the company.
Industrial Fund endorsement, coordinated development
The announcement project Wanye invested 800 million yuan, and the remaining investment will be obtained through socialized financing, local government industrial fund financing and other means. Wanye, the parent company, is backed by puke investment and national fund. It is also an important partner of Shanghai semiconductor equipment and materials industry fund. It supports the project construction and the coordinated development of the industrial chain.
The prototype of equipment / parts platform is now available
Kaishitong under Wanye is the leader of ion implantation in China and has the ability of domestic substitution; Its compartsystems is also a global leader in gas subsystem parts of semiconductor equipment. It also announced to expand production and strive to localize equipment parts. The announcement project is a further extension development of Wanye in the field of equipment parts. Jiaxin semiconductor will include 6 subsidiaries and 2 business divisions, covering etcher, RTP, film, single chip / groove cleaning, tail gas treatment, manipulator, etc. According to the company’s announcement, the project will be put into operation at the end of 2023 and reach production in 2025, so as to further improve the company’s comprehensive layout upstream and downstream of the whole industrial chain and realize platform development.
3、 Investment advice
We expect that the company’s revenue in 2021, 22 and 23 will be RMB 1.189/16.52/2.043 billion respectively, corresponding to 26 / 19 / 15 times of the current stock price PS respectively. Considering that the company is a scarce integrated circuit ion implantation equipment supplier in China, the equipment business is in a rapid start-up stage, with strong certainty of domestic substitution and coverage for the first time, it is given a “recommended” rating.
4、 Risk tips:
Product verification is not as expected; Cyclical fluctuations in downstream industries; Market competition intensifies.
