\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 16 Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) )
The company issued a performance express, and achieved a revenue of 5.961 billion yuan in 21 years, with a year-on-year increase of 56%; The net profit was 1.718 billion yuan, a year-on-year increase of 100%; Deduct non net profit of RMB 1.639 billion, with a year-on-year increase of 100%; The basic earnings per share was 1.34 yuan / share, a year-on-year increase of 100%.
Key points supporting rating
Gross profit margin, net profit margin and other profitability increased significantly. The net interest rate of the company reached 28.82%, a significant increase of 6.47 percentage points compared with 22.35% in 2020. For details, please refer to the financial data disclosed in the first three quarters. The gross profit margin in the first three quarters was 38.18%, an increase of 4.44 percentage points compared with 33.74% in the first three quarters of 2020; In the first three quarters, the expense rate of the total three expenses of sales expenses, management expenses and R & D expenses was 10.27%, which was 0.58 percentage point lower than 10.85% of the same caliber in the first three quarters of 2020. The overall increase in profitability is due to the scale effect of orders, the bargaining power brought by the monopoly of products, the company’s excellent production quality management and the refined management of business processes.
Semiconductor silicon wafer growth and processing equipment business is also developing beyond expectations. The broad market space and favorable policies of the semiconductor industry have accelerated the localization process of China’s semiconductor equipment, and the order volume of the company’s semiconductor equipment has increased rapidly. With reference to the unfinished semiconductor equipment contract of RMB 726 million (including tax) at the end of the third quarter of last year, a significant increase of 0.86 times compared with RMB 390 million at the end of 2020. The company’s semiconductor equipment products include long crystal furnace, thinning machine, double-sided grinder, double-sided polishing machine, edge polishing machine, final polishing machine, silicon epitaxial growth equipment, silicon carbide epitaxial growth equipment, etc., of which the company’s 8-inch long crystal equipment and processing equipment have been sold in batch; 12 inch long crystal equipment, rounding, cutting, grinding and polishing equipment have been verified by customers and sold; Silicon carbide epitaxial equipment has been verified and sold by customers.
The platform integrating advanced equipment, advanced materials and parts has achieved remarkable results. Focusing on the development strategy of “advanced materials and advanced equipment”, the company is involved in photovoltaic silicon wafer equipment, semiconductor silicon wafer equipment and SiC substrate equipment, and arranges relevant parts and consumables (semiconductor crucible, valve, magnetic fluid and silicon wafer polishing fluid), as well as the production of third-generation semiconductor SiC substrate. Among them, the undelivered contract amount of photovoltaic equipment at the end of 2021 is estimated to remain at 18-20 billion yuan (including tax), the on hand orders of semiconductor equipment continue to grow, the global supply of semiconductor parts is in short supply, and the demand for SiC substrate benefits from new energy.
Profit forecast and rating
In view of the significant effect of the company’s product platform and profitability improvement, and the current PE valuation returns to a relatively reasonable area, it is predicted that the net profit in 22-23 years will be RMB 2.631/3.610 billion, corresponding to the PE valuation of 29.5/21.5 times, and the company’s rating will be raised from overweight to buy.
Main risks of rating
The uncertainty of international geopolitical friction and the shortage of parts lead to the delay of order delivery.
