\u3000\u3 Guocheng Mining Co.Ltd(000688) 598 Kbc Corporation Ltd(688598) )
Event description
On April 9, the company announced that based on the R & D and application of high-purity carbon matrix composites used by the company in the semiconductor field, the company and Beijing Tianke Heda Semiconductor Co., Ltd. reached a strategic cooperation intention and signed the strategic cooperation agreement on April 8, 2022 through friendly negotiation. The cooperation period is 5 years from the date of signing the agreement.
Event comments
Combined with Tianke Heda, the market space of the third generation semiconductor materials is broad. Silicon carbide (SIC), as the core of the third generation semiconductor material, is one of the ideal materials for making high temperature, high frequency, high power and high voltage devices. For SiC substrate, only tiankeheda, Tianyue advanced, Sanan Optoelectronics Co.Ltd(600703) , Roshow Technoiogy Co.Ltd(002617) and others in China have mass production capacity. The company has reached in-depth strategic cooperation with Tianke Heda on high-purity thermal field materials, high-purity thermal insulation materials and high-purity powder materials in the field of third-generation semiconductors. In terms of technology, the two sides jointly develop products, and Tianke Heda puts forward quality requirements and cooperates with guidance, testing and evaluation. In terms of business cooperation, the price of the company is better than that of similar products in the market, and Tianke Heda gives priority to purchasing the company’s products. According to yole and wolfspeed data, the SiC substrate market scale in 2020 is about US $280 million, and the top five are overseas manufacturers, accounting for 98%. According to wolfspeed’s prediction, the market scale of SiC substrate is expected to reach US $1.7 billion in 2026, and the compound growth rate from 2022 to 2026 will reach 25%. With the release of China’s SiC substrate capacity, Jinbo will lock customers in advance and share the bonus of SiC substrate localization.
Customers in the semiconductor field have accumulated, and the company’s semiconductor revenue has increased rapidly. In the field of semiconductors, a number of products (crucibles, insulating cylinders, sectors, fasteners, etc.) of the company have passed the certification of Chinese semiconductor manufacturers such as Shandong Youyan semiconductor, Thinkon Semiconductor Jinzhou Corp(688233) ( Thinkon Semiconductor Jinzhou Corp(688233) ), Zhejiang Haina semiconductor, Ningxia Zhongxin wafer semiconductor, Dongguan zhiorange semiconductor, etc. From 2019 to 2021, the company achieved revenue of 2030800 yuan, 6985400 yuan and 24361600 yuan respectively in the semiconductor field, realizing rapid growth.
The capacity of photovoltaic thermal field continues to expand, and the leading position of the industry is stable. At the end of 2021, the company’s thermal field has a capacity of 1600 tons / year and an output of 1706 tons. The product supply is in short supply. At present, the cumulative capacity after the capacity under construction reaches 1950 tons / year. This year, the fixed increase project will add another 1500 tons / year, which continues to widen the gap with the second place. With the continuous expansion of downstream silicon wafer production capacity and the growth of photovoltaic installation demand, the company’s photovoltaic hot field sales will continue to increase. The company expects to realize the net profit attributable to the parent company in the first quarter of 2022 to be 190210 million yuan, with a year-on-year increase of 146% to 172%, and the leading position of the hot field is stable.
Investment advice
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 670 million yuan, 870 million yuan and 1.15 billion yuan respectively, and the corresponding dynamic PE of the company from 2022 to 2024 will be 26.4 20.4 15.4 times respectively. It will be covered for the first time and given the investment rating of “buy”.
Risk tips
The price of thermal field fell more than expected; The new installed capacity of photovoltaic was less than expected.
