\u3000\u3 Guocheng Mining Co.Ltd(000688) 012 Advanced Micro-Fabrication Equipment Inc.China(688012) )
The company issued the 2021 annual report. In 2021, the company’s operating revenue was 3.1 billion yuan, an increase of 37%; The net profit attributable to the parent company was 1 billion yuan, an increase of 105%; Deduct the net profit not attributable to the parent company of 300 million yuan, a significant increase year-on-year; Excluding share based payment, the net profit not attributable to the parent company was deducted by 500 million yuan, a year-on-year increase of 267%. The cost of equity incentive is about 200 million, the change in fair value is 460 million (before tax), and the subsidy is 350 million (before tax). In terms of revenue structure, the etching revenue was 2 billion yuan, an increase of 55% and the gross profit margin was 44%; MOCVD revenue was 500 million yuan, an increase of 1%, and the gross profit margin was 34% (a year-on-year increase of 15pct).
Strong demand, contract liabilities continued to grow. The company signed 4.1 billion yuan of new orders in 2021, a year-on-year increase of 91%. At the end of the reporting period, the company’s contractual liabilities were 1.37 billion yuan, an increase of 53% over the end of 21q3. The company’s inventory was 1.76 billion yuan, including about 850 million yuan of goods issued (a year-on-year increase of 72%). Contract liabilities reflect orders in hand, and goods issued reflect future revenue recognition.
The growth of ICP volume is strong, and the inflection point of MOCVD business is coming.
(1) the company delivered 298 cavity CCPs in 2021, with an increase in output of 40%, and obtained logical repeat orders of 5nm and below, which are widely used in 3dnand on 128 floors. The company is developing a new generation of key etching applications covering 128nm and above and extremely high aspect ratio etching equipment.
(2) the company delivered 134 chamber ICP in 2021, with an increase of 235% in output and received orders from multiple Chinese customers. The company’s next-generation ICP aims to meet the logic of 5nm and below, 1x nano DRAM and 3dnand etching requirements above 128 layers.
(3) the company’s Unimax equipment for miniled ordered more than 100 cavities in 2021, and zhaochi incremental ordered 52 cavities in February 2022. In addition, the company has developed Gan power device MOCVD, which is in the stage of delivery and customer verification.
(4) the company has made phased progress in tungsten filled CVD, docking verification with customers, and is further developing CVD and ALD.
On March 10, the company increased the capital of Shanghai Ruili by 108 million yuan, and the shareholding ratio increased from 20% to 29%. Shanghai Ruili’s main products are optical film thickness measurement equipment and optical defect detection equipment, as well as silicon wafer thickness and warpage measurement equipment. Its optical measurement equipment tfx3000 has been applied to 28nm production line and is being verified in 14nm production line; It is applied to 64 layer 3dnand and is being verified to 96 layer 3dnand.
Continue to invest in R & D. The company invested 728 million yuan in R & D, an increase of 14%, and the R & D investment accounted for about 23% of the revenue. Among them, the R & D cost was 595 million yuan, an increase of 6%. The company has 415 R & D personnel, accounting for 40% of the total employees. New products developed by the company include new generation CCP, new generation ICP, power ganmocvd and CVD to quickly open the product line.
Semiconductor etching equipment leader, build a flagship platform enterprise. The company has successfully built a technical team with creativity and core competitiveness. The company’s MOCVD continues to upgrade and ushers in the miniled inflection point. CCP products cover front-line customers at home and abroad. ICP products are rapidly iterated and measured in large quantities, and new product lines such as deposition are arranged to build a flagship enterprise of semiconductor equipment, and promote platform construction through epitaxial investment in Shenyang tuojing and Ruili instruments.
Semiconductor etching equipment leader, build a flagship platform enterprise. The company has successfully built a technical team with creativity and core competitiveness, and successfully opened up commercial space. The company’s MOCVD continues to upgrade, and its CCP products cover front-line customers outside China. ICP products are rapidly iterated and measured in large quantities. It continues to layout new product lines of semiconductor equipment, build a flagship enterprise of semiconductor equipment, and promote platform construction through epitaxial investment in Shenyang tuojing, Ruili instrument, Shandong Tianyue and other companies. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.105/13.24/1.545 billion, maintaining the “buy” rating.
Risk tip: downstream demand is less than expected.
