\u3000\u3 Guocheng Mining Co.Ltd(000688) 012 Advanced Micro-Fabrication Equipment Inc.China(688012) )
Event: the company disclosed its annual report on March 30, 2022. 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 net profit deducted from non parent company was 324 million yuan, a year-on-year increase of + 129110%.
Key investment points
The demand for semiconductor equipment is strong, and the orders on hand are full, which is the basis of annual growth
In 2021, the company realized an operating revenue of 3.11 billion yuan, a year-on-year increase of + 36.7%. In terms of business, (1) the revenue of etching equipment was 2 billion yuan, a year-on-year increase of + 55.4%. In 2021, 298 / 134 cavities of CCP / ICP etching equipment were delivered, and the output increased by 40% / 235% year-on-year; (2) MOCVD equipment revenue was 500 million yuan, a year-on-year increase of + 1.5%, mainly due to the slowdown in the growth of LED equipment market and the unconfirmed revenue of new MOCVD equipment orders. Since the launch of MOCVD new products for mass production of miniled in June 2021, the company has received orders from customers with more than 100 cavity miniled. With the explosion of demand for miniled and microled in the downstream high-end display, the company’s MOCVD equipment is expected to meet the performance inflection point.
In 2021, the amount of new orders signed by the company reached 4.13 billion yuan, a year-on-year increase of + 91%; Contract liabilities amounted to 1.37 billion yuan, a year-on-year increase of + 132%, with full orders on hand and sufficient growth momentum. The inventory reached 1.76 billion yuan, a year-on-year increase of + 65.6%. The downstream demand was strong. The company prepared a large number of goods to meet the needs of customers in time.
MOCVD’s profitability was significantly improved, and LPCVD, EPI and other new equipment were developed
In 2021, the company’s comprehensive gross profit margin was 43.4%, with a year-on-year increase of + 5.7pct, mainly due to the improvement of MOCVD equipment product structure. In terms of business, the gross profit margin of CVD + 15pct equipment is 33.4%, of which the gross profit margin of CVD + 9pct equipment is 33.4%, of which the gross profit margin of CVD + 15pct equipment is 33.4%. In 2021, the company’s expense ratio was 26.6%, with a year-on-year decrease of – 4.8%; Among them, the sales expense rate and the management expense rate total -1pct. Benefiting from the improvement of product gross profit margin and the enhancement of cost control ability, the company’s net profit margin reached 32.5% in 2021, with a year-on-year increase of + 10.9pct.
In 2021, the company invested 400 million yuan in R & D, accounting for 12.8% of the revenue. While ensuring the leading position of plasma etching equipment and MOCVD equipment, the company is developing LPCVD and EPI equipment (epitaxial growth equipment) and planning to develop ALD and ale equipment.
The construction of factory buildings was accelerated and the rhythm of production capacity was released in an orderly manner
In 2021, the company launched three large-scale construction projects in succession, among which the R & D and production base of Nanchang high tech Zone in Jiangxi Province has been fully capped, and the R & D and production base and headquarters building of Lingang New Film zone in Shanghai are under construction. It is estimated that by 2023, the company’s plant area will expand to more than ten times of the current one, and the release of production capacity will be accelerated to ensure high growth of performance.
Equity incentive binds talents and demonstrates long-term growth confidence
The company plans to issue a total of 11.99 million incentive shares to the company’s core employees on March 2024, and the incentive plan will be issued to restrict the enthusiasm of 4 million employees. The incentive plan not only assesses the performance at the individual level, but also sets goals for the performance at the company level: Based on 2021, the revenue growth rate from 2022 to 2025 shall not be less than 20% / 45% / 70% / 100%. According to the target, the CAGR of the company will reach 19% from 2021 to 2025.
The net profit of the company in 2027 is expected to be 3.4-3.4 times that of the company in 2024, and the net profit of the company in 20207 is expected to be 3.4-3.4 times that of the company in 2027, respectively.
Risk tip: the expansion pace of the wafer factory is not as expected; The progress of plant construction is less than expected; New product development is not as expected; The epidemic has impacted the supply chain.
