\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 16 Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) )
The company released the performance express for 2021: 1) the annual operating revenue was 5.961 billion yuan (a year-on-year increase of 56.44%); The net profit attributable to the parent company was 1.718 billion yuan (a year-on-year increase of 100.23%), close to the central level of performance forecast; 2) From the fourth quarter alone, the revenue was 1.969 billion yuan (mom + 15.55% / yoy + 48.60%); The net profit attributable to the parent company was 607 million yuan (mom + 19.02% / year-on-year 81.74%), and the net profit attributable to the parent company in a single quarter hit a record high.
Photovoltaic equipment + semiconductor equipment + sapphire materials and other consumables business jointly contribute to performance growth. The company is the largest leader in the field of photovoltaic silicon wafer equipment. On the premise of continuously improving the equipment delivery capacity, the order volume, the scale of operating revenue and the growth rate of operating performance have increased significantly year-on-year. In addition, the company’s semiconductor equipment localization process was accelerated, and the business volume of superimposed sapphire materials was large. The business development momentum was good, making a positive contribution to the growth of business performance.
Benefiting from the active expansion of downstream silicon wafer manufacturers, the performance of photovoltaic silicon wafer equipment increased significantly. 1) Contract liabilities: as of 2021q3, the company’s contract liabilities were 3.834 billion yuan, an increase of 91.35% year-on-year; 2) Orders in hand: as of 2021q3, the company has not completed the contract of crystal growth equipment and intelligent processing equipment, totaling 17.76 billion yuan, including 726 million yuan of semiconductor equipment contract. From October to November 2021, the company signed 1.485 billion yuan and 837 million yuan of single crystal furnace equipment with Gaojing and Shuangliang respectively, superimposing the newly signed semiconductor equipment orders (200 million yuan). We expect the overall orders in hand of the company to be more than 20 billion yuan.
Breakthrough progress has been made in fixed code silicon carbide substrate materials and semiconductor equipment. In October 2021, the company issued a fixed increase announcement, raising 5.7 billion yuan, all of which were applied to the silicon carbide substrate wafer production base, the 12 inch integrated circuit large silicon wafer equipment test line project, the production and manufacturing project of 80 semiconductor material polishing machines thinning equipment, etc. According to the reply report in February 2022, 1) an intentional contract has been signed for silicon carbide substrate materials: customer a has formed a purchase intention with the company. From 2022 to 2025, the company will give priority to providing it with a total of no less than 230000 silicon carbide substrates. Customer a will give priority to purchasing the company’s silicon carbide substrate products on the premise of meeting the same technical parameters and prices; 2) Semiconductor equipment orders in hand exceed 200 million: customer B (product: 8-12 inch thinning and polishing equipment), with an order amount of 141 million yuan Zhejiang Mtcn Technology Co.Ltd(003026) (product: 8-inch polishing line), with an order amount of 80 million yuan. New orders will provide new development impetus for the company’s future performance growth.
Investment suggestion: the high prospect of the photovoltaic industry supports the high increase of orders for photovoltaic equipment. In addition, the company’s semiconductor equipment and silicon carbide materials have been recognized by customers one after another. We expect the company’s revenue to be 5.96 (disclosed) / 10.71/13.3 billion yuan from 2021 to 2023, and the net profit attributable to the parent company to be 1.7/25/3.1 billion yuan respectively. The current share price corresponds to 31 and 25 times of PE in 2022 and 20223 respectively, Maintain a “recommended” rating.
Risk warning: downstream demand is less than expected; The progress of the fixed increase project is less than expected.
