\u3000\u3 Guocheng Mining Co.Ltd(000688) 556 Qingdao Gaoce Technology Co.Ltd(688556) )
The competitiveness of photovoltaic chip equipment continues to strengthen and expand the industry’s leading customers again. The company occupies a high market share in the photovoltaic cutting equipment market and is one of the three major photovoltaic cutting equipment suppliers in the world. The other two are Wuxi Shangji Automation Co.Ltd(603185) , Liancheng CNC. The company has continued to expand downstream customers since 2021. In 2021, the company signed PV cutting equipment orders of 159 million yuan, 395 million yuan and 224 million yuan with Jingao, Gaojing and Tonghe respectively, and signed 222 million yuan orders with Jingao this year, fully demonstrating the company’s leading position in the industry.
The company’s chip OEM business is expected to become a new performance growth point. As a chip OEM enterprise, the company’s profit sources include chip OEM fees and the sale of surplus chips. With the in-depth research and development of slicing technology, market-leading cutting equipment and the layout of diamond wire, the company has occupied a leading position in the slicing OEM industry. At present, the company has announced that the OEM order for hand slicing is 35gw. Combined with the calculation of the project implementation progress, we expect to reach the production capacity of 10-15gw in 2022, which is expected to make a positive contribution to the company’s performance in 2022.
Fully benefiting from the heterojunction slicing technology, semiconductor cutting equipment is about to usher in a breakthrough. Slicing is one of the advantages of heterojunction battery and the future development direction of the industry. The thickness of heterojunction silicon wafer is expected to be reduced to 120um in the future. The company has been actively carrying out R & D and technical reserves in slicing, cooperating with industry leaders in R & D, and gradually launched heterojunction n-type large-size 120 μ M cutting equipment is expected to fully benefit from the slicing process in the future. On the other hand, the company’s on-hand orders for semiconductor cutting machines, sapphire slicers and magnetic materials equipment in 2021h1 amounted to about 25.24 million yuan (including tax). In 2021, the sales scale of innovative business areas (semiconductors, sapphire and magnetic materials) increased significantly, and semiconductor cutting equipment is expected to continue to open up the company’s growth space in the future.
Give the company a “buy” rating. In 2021, the company achieved an operating revenue of 1.567 billion yuan, a year-on-year increase of 110%; The net profit attributable to the parent company was 173 million yuan, a year-on-year increase of 193%. In the fourth quarter of 2021, the operating revenue was 594 million yuan, a year-on-year increase of 148%; The net profit attributable to the parent company was 61 million yuan, a year-on-year increase of 255%. Considering that the company’s slicing equipment continues to take orders and the OEM business is expected to contribute to the incremental performance, we raised the company’s profit forecast and expected the company’s net profit of 350 million and 540 million yuan in 202223 (the net profit forecast of 202223 before the increase was 240 million and 360 million yuan). The company’s silicon chip slicing equipment extends to semiconductor equipment, heterojunction and other fields, and is optimistic about the future valuation improvement space of the company.
Risk warning: the company’s cutting equipment order is not as expected; The profitability of the company’s chip OEM business is lower than expected; The business layout of the company’s new products was less than expected.
