\u3000\u3 Guocheng Mining Co.Ltd(000688) 012 Advanced Micro-Fabrication Equipment Inc.China(688012) )
Event: the company issued the 2021 annual report. In 2021, the company realized an operating revenue of 3.108 billion yuan, a year-on-year increase of 36.72%; The net profit attributable to the parent company was 1.011 billion yuan, a year-on-year increase of 105.49%; The non net profit deducted was 324 million yuan, a year-on-year increase of 129110%.
The company continues to cultivate the key equipment field of integrated circuits and expand the application of Pan semiconductor key equipment field. Etching and MOCVD equipment have made great breakthroughs and progress in product R & D and market layout. We are optimistic that under the background of actively promoting the localization of semiconductor equipment in China, the company will continue to give full play to the competitive advantages of technology and products and promote the continuous growth of business.
The newly signed orders continued to land, the revenue is expected to be further improved, the product structure is optimized, and the gross profit margin increased significantly year-on-year. In 2021, the revenue of etching equipment was 2.004 billion yuan, an increase of about 55.44% over 2020, and the gross profit margin reached 44.32%; Due to the downstream market and the unrecognized revenue of the newly signed miniledmocvd equipment scale orders this year, the revenue of MOCVD equipment in 2021 was 503 million yuan, an increase of about 1.53% over 2020, but the gross profit margin of MOCVD equipment reached 33.77%, a significant increase from 18.65% in 2020. The amount of new orders signed by the company in 2021 was 4.13 billion yuan, an increase of about 1.96 billion yuan over 2020, a year-on-year increase of about 90.5%.
The revenue of etching equipment business increased significantly, and repeated orders highlighted the competitiveness of the company’s products. In 2021, the company’s CCP etching equipment products maintained a competitive advantage. Primoad RIE, primosscadrie, primohd RIE and other products were applied in batch to the integrated circuit processing and manufacturing production lines of front-line customers outside China, and the market share of some customers has entered the top three. In 2021, the company produced and shipped 298 cavities of CCP etching equipment, with a year-on-year increase of 40%. In addition, in terms of advanced logic circuits, the company continued to upgrade hardware performance and successfully obtained repeated orders for logic circuit production lines of 5 nm and below. In terms of storage circuits, the company’s etching equipment is widely used in 64 layer and 128 layer 3dnand production lines. With the rapid increase of the capacity of 3dnand chip manufacturing plant, the repeated orders of these products have increased steadily. At the same time, the company actively laid out the application of dynamic memory and began process development and verification. The company actively cooperates with mainstream customers to define the main functions and technical indicators of the next generation CCP etcher, and is developing more advanced CCP etcher products. The company’s ICP etching equipment also made a breakthrough in the client in 2021. It has passed the Process Certification of many customers and obtained repeated orders. In 2021, the company delivered more than 130 ICP etchers, with a year-on-year increase of more than 230%.
The second growth curve of MOCVD sets sail and actively layout the third generation semiconductor application equipment. In 2021, the company’s blue light lighting prismoa7 and deep UV LED epitaxial prismohit3 products continued to serve customers; The company officially released the MOCVD device prismonimax for mass production of high-performance miniled in June 2021. The equipment is specially designed for high output and has the advantages of high wavelength uniformity and high yield. In addition, the equipment can process 164 4-inch or 72 6-inch epitaxial wafers at the same time. It has received batch orders from many leading customers in China, totaling more than 100 cavities. The company is working with more customers to conduct equipment evaluation and expand market promotion. Prismonimax equipment expands the company’s MOCVD equipment product line and provides competitive miniled mass production solutions for global LED chip manufacturers. At the same time, the company is also developing special MOCVD equipment for microled applications. The company has also actively laid out the third generation semiconductor equipment market for power device applications and developed MOCVD equipment for mass production applications of Gan power devices. At present, it has been delivered to leading customers at home and abroad for production verification. In addition, the company has started the development of epitaxial production equipment for silicon carbide power devices, which will further enrich the company’s product line.
The projects invested with raised funds continued to make progress, and the industrialization construction was smoothly promoted. In order to expand the scale of assets, enhance the strength of the company and continue to expand and strengthen its main business, the company completed the issuance of shares to specific objects in 2021. The number of shares issued to specific objects this time is 80229335, the issuance price is 102.29 yuan / share, and the total amount of funds raised in this issuance is 820665867715 yuan. The structural capping of the medium and micro port industrialization base project has been completed; The production base project of Nanchang Zhongwei Semiconductor Equipment Co., Ltd. has completed the construction of main roads in the plant, and all main single buildings have been capped; The project of China micro port headquarters and R & D base is undergoing preparations such as temporary equipment construction and machinery mobilization and assembly before construction.
Equity incentive demonstrates confidence and provides mechanism guarantee for the sustainable and healthy development of the company. The company issued the draft of equity incentive in March 2022. The total number of incentive objects was 1104, accounting for 99.37% of the total number of employees of the company. 4 million restricted shares were granted to the incentive objects, accounting for about 0.649% of the total share capital of the company at the time of announcement of the draft incentive plan. The grant price of restricted shares is 50 yuan per share, that is, after meeting the grant conditions and attribution conditions, the incentive object can purchase the company’s A-share common shares issued by the company to the incentive object at the price of 50 yuan per share.
Investment suggestion: due to the steady progress of the company’s R & D and new product launch, we originally expected the net profit of 21-23 to be RMB 617 / 787 / 989 million, which was raised to RMB 1.124/14.13/1.75 billion in 22-24 years, so as to maintain the “buy” rating of the company.
Risk tip: the expansion of new applications and products is not as expected; Risk of deterioration of competitive environment; The supplier’s production expansion was less than expected.
