\u3000\u3 Guocheng Mining Co.Ltd(000688) 037 Kingsemi Co.Ltd(688037) )
Events
In 2021, the company achieved a revenue of 830 million yuan, a year-on-year increase of + 152.0%, a net profit attributable to the parent company of 80 million yuan, a year-on-year increase of + 58.4%, and a deduction of non attributable to the parent company of 60 million yuan, a year-on-year increase of + 395.8%; Among them, Q4’s single quarter revenue was 280 million yuan, a year-on-year increase of + 140.6%, the net profit attributable to the parent was 24 million yuan, a year-on-year increase of + 481.9%, and the non attributable parent was deducted by 18 million yuan, reversing the loss year-on-year.
Brief comment
The performance increased significantly in 2021, with full orders on hand, laying the foundation for the high growth in 2022
① the industry boom continued + new products continued to be promoted, and the performance increased significantly. In 2021, the company’s operating revenue increased by 151.95% year-on-year, the net profit attributable to the parent increased by 58.41% year-on-year, and the net profit excluding non attributable to the parent increased by 395.83% year-on-year, realizing a significant increase. The high performance growth was mainly due to the continuous improvement of the prosperity of the semiconductor industry and the smooth promotion of the company’s new products. The company’s main products, the photoresist process, the gelatinization and development equipment and the single-chip wet equipment, sold 158 and 65 units respectively, with a year-on-year increase of 102.45% and 225.00% respectively.
② high volume of previous products + tight supply chain drive down the gross profit margin and wait for repair. The gross profit margin of the company in 2021 was 38.08%, down 5.52pct year-on-year, mainly due to the following two reasons: first, the sales structure of the company’s products changed, and the proportion of the revenue of the previous products increased, while the previous products are still in the market development period, and the gross profit margin is low; Secondly, the tight supply chain has led to an increase in the cost of parts. In the future, with the improvement of product maturity + technology upgrading and the continuous promotion of domestic substitution of parts, the company’s gross profit margin will return to a steady state.
③ R & D continues to increase, and product competitiveness continues to improve. The company invested 92 million yuan in R & D in 2021, with a year-on-year increase of 103.68%. The company attaches great importance to research and development, continues to increase the size of products, enters the front field, constantly upgrades the technical indicators of front gluing and developing equipment, accelerates the promotion of front chemical cleaning equipment, and builds core competitiveness for long-term development; In terms of supply chain, independent R & D and joint R & D should be carried out simultaneously to continuously promote the localization of key parts.
④ the orders in hand are full, the newly signed orders maintain growth, and the future performance is guaranteed. By the end of 2021, the total contract liabilities of the company were RMB 353 million, an increase of 166.43% over RMB 132 million at the end of 2020, and the company’s inventory was RMB 932 million, an increase of 131.73% over RMB 402 million at the end of 2020. Both reflect the rapid growth of new orders signed by the company. Structurally, the proportion of front gluing, developing and cleaning equipment in the newly signed orders of the company continues to increase, and is expected to reach 50% in the future, laying a good foundation for high performance growth in the future.
The verification of the former products continues to be promoted, and the latter products develop customers outside the mainland
① previous products: continuously promote the verification and continuously open up the market space. The company’s front products include front gluing and developing equipment and spinscrubber cleaning equipment. In the field of front gluing equipment, the company is the only manufacturer in China that can provide high-end photoresist gluing and developing equipment, with outstanding card position advantages. In the previous process, the company has completed the full verification of 28nmoff line process, and the in-line process can realize the online operation with ASML, cannon, Nikon and other mainstream lithography machines. Among them, i-line and KrF have begun to receive orders in batch, and the submerged products have been verified in the experimental line to meet the requirements of mass production. It is expected to complete all verification by the end of this year. The average price of the previous gluing and developing equipment is more than ten million yuan, especially the unit price of the in-line process machine is more than 20 million yuan. After the product verification, it will contribute higher performance growth to the company. In the field of front cleaning equipment, the company’s single-chip cleaning equipment spinscrubber can cover the 28nm process, which has reached the international leading level. In 2021, it won batch repeated orders from many Fab factories in China, such as Semiconductor Manufacturing International Corporation(688981) , Shanghai Huali, Wuhan Xinxin, Xiamen Shilan Jike, Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , Qingdao Xinen, Shanghai Jita, and successfully realized import substitution. In addition, chemical cleaning companies will actively promote the research and development of single-chip cleaning equipment, accounting for 90% of the market share of new semiconductor equipment.
② later products: small-scale fields such as compounds have increased significantly and continue to develop new customers outside the mainland. With the rapid rise of the 4-6-inch compound semiconductor market, the company’s revenue in small-scale fields such as compounds increased by nearly 300% year-on-year in 2021 with its high-quality products and reputation. Clients: the company has established industry popularity. Its clients include TSMC, Jcet Group Co.Ltd(600584) , Tianshui Huatian Technology Co.Ltd(002185) , Tongfu Microelectronics Co.Ltd(002156) , China Wafer Level Csp Co.Ltd(603005) , Hc Semitek Corporation(300323) and other first-line manufacturers, and has maintained long-term and stable cooperative relations. In 2021, it will open up new packaging customers such as rimoonlight, silicon technology and Shenghe crystal micro, and will actively expand markets outside the mainland in the future.
Investment advice
As a domestic high-end investment company, China will fully benefit from the boom + coating industry. From the perspective of the company, on the one hand, based on the original product base, the company continues to actively expand to ARFI machines in gluing development and chemical wet cleaning in cleaning equipment, so as to continuously open up greater market space; On the other hand, the company’s front gluing development and spinscrubber cleaning equipment have made varying degrees of progress among head customers, laying the foundation for its large-scale production. It is estimated that the company’s revenue from 2022 to 2024 will be 1.318 billion yuan, 1.696 billion yuan and 2.206 billion yuan respectively, and the net profit attributable to the parent company will be 150 million yuan, 202 million yuan and 297 million yuan respectively, with a year-on-year increase of 93.6%, 34.9% and 46.8% respectively, and the corresponding PE will be 90.3x, 66.9x and 45.6x respectively, maintaining the “buy” rating.
Risk tips
Continuous tension in the supply chain: some core parts of the company come from overseas suppliers. If the epidemic situation leads to the extension of the delivery time of the supply chain or affects the delivery of products in the future.
Intensified trade frictions: trade frictions between China and the United States may have an adverse impact on the expansion of overseas customers of the company.
New product verification is not as expected: the company still has a number of products verified on the client. If the verification progress is not as expected, it will affect the subsequent repeated orders.
