\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 641 Shanghai Wanye Enterprises Co.Ltd(600641) )
Event: on March 30, 2022, the company announced that the second phase of national large fund and Shanghai equipment and materials fund plan to increase the capital of Zhejiang praseodymium core, a joint-stock subsidiary of the company, with a total of RMB 390 million. The company agrees to the capital increase. After the capital increase, the company holds 29.63% of the equity of Zhejiang praseodymium core, which is the largest shareholder of Zhejiang praseodymium core.
Comments:
The large fund took shares in semiconductor equipment parts enterprises for the first time, highlighting the importance of localization of semiconductor equipment parts. In the early stage, the national large fund mainly invested in design, manufacturing, sealing and testing, materials and equipment, and made a large-scale layout of semiconductor equipment parts companies for the first time, highlighting the importance of localization of semiconductor equipment parts. By investing funds in the weak field of domestic substitution, it aims to build an autonomous local semiconductor industry chain ecosystem and reduce the risk of supply interruption caused by Sino US trade friction. At present, the technical capability, process level, product accuracy and reliability of local semiconductor equipment parts enterprises are far behind those of foreign countries, and the overall localization rate is only 10% - 30%. Especially in the field of flow control related to compart, the localization rate is almost zero. In addition to semiconductor equipment, the core parts of semiconductor equipment are also one of the key areas of localization in the future.
Compart is the world's leading supplier of semiconductor equipment parts, and the company is its largest shareholder. After the capital increase, the company holds 29.63% of the equity of Zhejiang praseodymium core, which is the largest shareholder of Zhejiang praseodymium core. Zhejiang praseodymium core directly holds 73.11% equity of praseodymium core holdings, and praseodymium core holdings directly holds 100% equity of compart. The company indirectly becomes the largest shareholder of compart. Compart is one of the suppliers in the field of gas delivery system required by integrated circuit equipment. Its main products include BTP (builttoprint) components, assemblies, seals, gas rod assemblies, gas flow controllers (MFC), weldments, etc. its products are used for accurate gas delivery system required by oxidation / diffusion, etching and deposition equipment in integrated circuit manufacturing process. It is a leader in high-end MFC components in integrated circuit industry, It is one of the few companies in the world that can complete all links of precision machining of parts and components in this field. Since the completion of the acquisition of the company, compart has changed from a foreign-funded enterprise to a Chinese holding enterprise. Relevant products have entered the supply chain of China semiconductor equipment company, and the revenue growth rate continues to rise. According to the company's statistics, Zhejiang praseodymium core achieved an operating revenue of about 920 million yuan and a net profit of about 138 million yuan in 2021. At the same time, taking advantage of the external factors of the current high prosperity of semiconductor equipment, the company signed a contract with Haining to start the compart manufacturing center project in June 2021, with a total investment of about 3 billion yuan. It is expected that the completion of the project will effectively fill the gap in the local relevant industrial chain and accelerate the localization process of China's semiconductor core parts.
Independent research and development and extension mergers and acquisitions help the company transform into an integrated circuit core equipment platform company. In recent years, the company has actively transformed from real estate business to IC core equipment business by means of "external M & A and internal growth". On the basis of the original core product ion implanter, the company has actively arranged a variety of front-end equipment such as etching machine, rapid heat treatment / fire fading, film deposition, single-chip cleaning machine, trough cleaning machine, tail gas treatment and manipulator, supplemented by the mature experience of spare parts leader compart in serving the world's top semiconductor equipment companies, forming the prototype of "1 + n" semiconductor equipment platform company. In addition, as the main LP invested by Shanghai semiconductor equipment and materials fund, the company has invested in Huazhuo precision technology, Shanghai precision testing, Hangzhou Chang Chuan Technology Co.Ltd(300604) , Shanghai Yudu, etc., covering the core parts of lithography machine - Dual worktable, semiconductor front channel testing equipment, rear channel testing machine and other core equipment. The layout of the company's IC core equipment field is becoming more and more diversified and platformized, improving the industrial process chain of IC equipment, Further realize the synergy between upstream and downstream industries and strive to become one of the platforms with the most abundant categories of front-end core equipment in China in the future.
Profit forecast, valuation and rating: the company has formed the rudiment of "1 + n" semiconductor equipment platform company, and its subsidiary Keshitong ion implanter has received large orders, which is expected to continue to increase its volume. In addition, it has set up Jiaxin semiconductor to engage in the development of new equipment and the merger and acquisition of compart, completed the layout of core parts of the equipment, and maintained the net profit attributable to the parent company from 2021 to 2022 at 384 million yuan and 522 million yuan respectively, Optimistic about the performance increment brought by Jiaxin semiconductor and compart to the company, the net profit attributable to the parent company in 2023 was raised to 590 million yuan (up 7.08%), and the PE corresponding to the current market value was 53x, 39x and 35x respectively, maintaining the "buy" rating.
Risk tip: customer import and verification are less than expected, wafer factory expansion is less than expected, and technology research and development is less than expected.
