\u3000\u3 Guocheng Mining Co.Ltd(000688) 037 Kingsemi Co.Ltd(688037) )
Event: the company released its annual report for 2021, and achieved a revenue of 829 million yuan in 2021, with a year-on-year increase of 151.95%; The net profit attributable to the parent company was RMB 4.17 billion, a year-on-year increase of 5.8%; Net profit deducted from non parent company was 64 million yuan, with a year-on-year increase of 395.83%.
From the single quarter of Q4, Q4 achieved a revenue of 281 million yuan, an increase of 140.64% year-on-year and 43.41% month on month; The net profit attributable to the parent company was 24 million yuan, a year-on-year increase of 485.71% and a month on month increase of 34.67%; Net profit deducted from non parent company was 18 million yuan, with a year-on-year increase of 755.95% and a month on month increase of 10.00%.
In the 21st year, the revenue increased significantly year-on-year, and the proportion of expenses decreased significantly: the company’s annual revenue and net profit attributable to the parent company increased significantly year-on-year, mainly due to the continuous improvement of the prosperity of the semiconductor industry and the rapid volume of product revenue in the field of integrated circuit front wafer processing. In terms of revenue structure, in 2021, the operating revenue of gluing and developing equipment products in lithography process was 506 million yuan, with a year-on-year increase of 114.40%, accounting for 61% of the revenue; The operating revenue of monolithic wet equipment products was 290 million yuan, a year-on-year increase of 280.56%, accounting for 44% of the revenue. From the perspective of profitability, the gross profit margin of the company in 2021 was 38.08%, with a year-on-year decrease of -4.5pct, and the gross profit margin decreased slightly. The total period expenses accounted for 30.90% of the revenue, with a year-on-year decrease of -10.33pct. The proportion of period expenses in the overall revenue decreased significantly, mainly due to the prominent scale effect. From the perspective of the company’s assets and liabilities, by the end of 2021, the company’s inventory was 932 million yuan, a year-on-year increase of 131.73%, mainly due to the impact of the expansion of the company’s business scale; Contract liabilities amounted to RMB 354 million, with a year-on-year increase of 166.43%, mainly due to the increase of sales funds received in advance.
The front gluing development is progressing smoothly and the prospect is promising: in the gluing development equipment, the front gluing development equipment produced by the company has won many large customer orders, and the downstream customers cover many Chinese manufacturers such as logic, storage, power devices and other special processes. At present, the company’s offline gluing and developing machine has achieved mass sales, i-line gluing and developing machine has passed the verification of some customers and entered the stage of mass production and sales, and KrF gluing and developing machine has passed the acceptance of customers. In terms of lithography machine online, the front coating and development equipment produced by the company can realize online operation with a variety of mainstream lithography machines, such as ASML, cannon, Nikon, etc. In addition, the company plans to raise no more than 1 billion yuan for Shanghai Lingang Holdings Co.Ltd(600848) R & D and industrialization projects and industrialization projects of high-end wafer processing equipment in Shenyang. In addition to increasing investment in front i-line and KrF lithography process gluing and developing machines, the company will also expand front ARF lithography process gluing and developing machines, further improve the layout of front gluing and developing equipment and improve production capacity, Meet business growth needs
The cleaning equipment is growing rapidly and the rear packaging customers are constantly enriched: in terms of cleaning equipment, the company’s front spinscrubber cleaning machine equipment has reached the international advanced level and successfully realized domestic replacement. In 2021, it won Semiconductor Manufacturing International Corporation(688981) , Shanghai Huali, Wuhan Xinxin, Xiamen Shilan Jike, Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , Qingdao Xinen Shanghai Jita and other Chinese Fab manufacturers have repeated orders in batches. In 2021, the company sold 65 single-chip wet equipment, with a year-on-year increase of 225%. In the field of advanced packaging in the back channel, the back channel gluing and developing equipment and single-chip wet equipment produced by the company, as the mainstream models, have been applied in batch to TSMC, Jcet Group Co.Ltd(600584) , Tianshui Huatian Technology Co.Ltd(002185) , Tongfu Microelectronics Co.Ltd(002156) , China Wafer Level Csp Co.Ltd(603005) , SMIC Shaoxing, SMIC Ningbo and other first-line factories in China. At present, they have become the main mass production equipment of clients and have successively developed rimoonlight Silicon products technology, Shenghe crystal micro and other packaging customers.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 1.272 billion yuan, 1.764 billion yuan and 2.408 billion yuan respectively, and the net profit attributable to the parent company will be 151 million yuan, 224 million yuan and 310 million yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: downstream demand attenuation risk, market competition risk, product R & D failure to meet the expected risk.
