\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 46 Jiangsu Nata Opto-Electronic Material Co.Ltd(300346) )
Event 1: on the evening of March 30, the company released its annual report for 2021. In 2021, the company achieved a revenue of 984 million yuan, a year-on-year increase of + 65.46%; The net profit attributable to the parent company was 136 million yuan, a year-on-year increase of + 56.55%. Among them, 2021q4 company achieved an operating revenue of 276 million yuan, a month on month increase of + 3.60% and a year-on-year increase of + 66.37%; The net profit attributable to the parent company was 12 million yuan, with a month on month ratio of – 68.19%, turning losses into profits year-on-year.
Event 2: on the evening of March 30, the company released the performance forecast for the first quarter of 2022. From January to March 2022, the company achieved a revenue of about 70-83 million yuan, with a year-on-year increase of about 64.33% – 94.85%; The net profit attributable to the parent company was about 54-67 million yuan, with a year-on-year increase of about 67.57% – 107.92%.
Event 2: on the evening of March 30, the company issued a plan to issue convertible corporate bonds to unspecified objects. The company plans to raise a total of no more than 900 million yuan for the industrialization of advanced semiconductor precursor products, and continue to expand the production capacity of hydrogen electronic special gas high-purity phosphine, arsane and fluorine-containing electronic special gas nitrogen trifluoride and supplement working capital.
Comments:
The production and sales of main products are booming, and the company’s performance has increased significantly: driven by the shortage of semiconductor industry and the acceleration of localization substitution, the downstream market demand is strong, and the company has achieved a significant increase in revenue. In terms of products, the average selling price of Mo source products of the company increased by 21.30% in 2021, and the operating revenue increased by 38.34% year-on-year; The average selling price of special gas products increased by 6.64%, and the operating revenue increased by 70.25% year-on-year; The operating income of other products increased by 92.10% year-on-year, with the fastest growth rate. Among them, the gross profit margin of Mo source products increased significantly year-on-year, about 10.92pct. In 2021, the market share of the company’s semiconductor materials increased steadily, and the annual sales volume was 5810 tons, with a year-on-year increase of 59.74%. Among them, the sales volume of Mo source products increased by 14.05% and the sales volume of special gas products increased by 59.65% year-on-year. Thanks to the growth of sales volume and gross profit margin of various products of the company, the company achieved a revenue of about RMB 70-83 million from January to March 2022, with a year-on-year increase of about 64.33% – 94.85%; The net profit attributable to the parent company was about 54-67 million yuan, with a year-on-year increase of about 67.57% – 107.92%, and the performance exceeded expectations.
The electronic special gas business has developed rapidly, and the semiconductor photoresist has made steady progress: in 2021, the company will give full play to the advantages of industrial layout, technology and brand, actively explore the market and expand production capacity. In 2019, the company acquired 57.97% equity of feiyuan gas through cash acquisition and capital increase. Feiyuan gas is mainly engaged in the production and sales of electronic special gas products such as nitrogen trifluoride and sulfur hexafluoride. After more than two years of efforts, the company’s fluorine electronic special gas production capacity has expanded from 1000 tons / year in 2020 to 4000 tons / year in 2021, ranking second in China and third in the world. By the end of 2021, the company has an annual production capacity of 6900 tons of special gases and 36.4 tons of Mo source products. In addition, the company’s “development and industrialization of ARF photoresist products” project has built a production line with an annual output of 25 tons, which has laid a foundation for the large-scale mass production of ARF photoresist.
Focusing on the semiconductor materials industry and the semiconductor materials industry, the company plans to gradually expand its production capacity by raising 900 million yuan. In terms of Mo source products and hydrogen electronic special gas, the company closely follows the market demand, further expands production capacity and continuously improves market share; In terms of fluorine electronic special gas, the company advanced into Ulanqab and made full use of local resource endowment and market advantages to continue to promote the construction of nitrogen trifluoride production capacity in the base. In March 2022, the company disclosed the plan to issue convertible corporate bonds to unspecified objects. The total amount of funds to be raised is no more than 900 million yuan. In addition to 250 million yuan to supplement working capital, other funds will be used for the industrialization project of precursor products for advanced semiconductor process with an annual output of 45 tons, the expansion of high-purity phosphine and arsane with an annual output of 140 tons, and the technical transformation project of arsane The annual output of 7200 tons of electronic grade hydrogen trioxide project of ulanqa bunanda Microelectronic Materials Co., Ltd. is planned to invest 70 million yuan, 80 million yuan and 500 million yuan respectively. After the completion of the project, the existing production capacity will be greatly expanded to inject new impetus into the rapid development of the company.
Profit forecast, valuation and rating: the company’s performance in 2021 is slightly lower than previously expected, and the performance in Q1 in 2022 is higher than expected. We still maintain the company’s profit forecast from 2022 to 2023 and the profit forecast of new companies in 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 203 / 257 / 321 million yuan respectively, and the corresponding EPS will be 0.48/0.61/0.76 yuan / share respectively. The current share price will be about 86 times that of PE in 2022. We are optimistic about the long-term development of the company’s three major businesses of semiconductor precursor, electronic specialty gas and semiconductor photoresist under the background of high prosperity in the semiconductor industry, and still maintain the “overweight” rating of the company.
Risk tip: R & D risk, product introduction risk, capacity construction is less than expected, and downstream demand is less than expected.
