\u3000\u3 Guocheng Mining Co.Ltd(000688) 598 Kbc Corporation Ltd(688598) )
Event: on April 8, 2022, the company announced that it had signed a strategic cooperation agreement with Tianke Heda.
Key investment points
Strategic cooperation, deep technical and commercial cooperation with Tianke Heda: Kbc Corporation Ltd(688598) and Tianke Heda signed the strategic cooperation agreement on April 8. The two sides jointly reached a deep strategic partnership on the development and application of [high-purity thermal field materials], [high-purity thermal insulation materials] and [high-purity powder materials] in the third generation semiconductor field. The cooperation period is 5 years and can be renewed after the end. (1) Technical cooperation: both parties jointly research and develop the thermal field materials, thermal insulation materials and powder materials of the third generation semiconductor. Tiankeheda gives guidance to Jinbo in terms of product development direction and technical requirements, and cooperates with Jinbo in product testing and evaluation, so as to meet the needs of tiankeheda for the localization of relevant materials. (2) Business cooperation: Jinbo gives priority to tiankeheda at a price superior to the market; Under the condition of equal cost performance, tiankeheda gives priority to purchasing Jinbo’s thermal field, thermal insulation and powder materials.
The market space of silicon carbide substrate is large. Kbc Corporation Ltd(688598) has made a breakthrough in high-purity thermal field & thermal insulation materials: silicon carbide substrate accounts for 47% of the whole industrial value chain. At present, imported thermal field & thermal insulation accounts for 40% of the substrate cost. After localization, we conservatively estimate that the thermal field value accounts for 15% of the overall investment price of silicon carbide. According to our calculation, in 2025, the market space of silicon carbide thermal field & thermal insulation materials will reach 5.3 billion yuan, with broad market space and high technical barriers. Suppliers who give priority to localization are expected to obtain a high market share. The company’s goal is to achieve localization and cost reduction. At present, the company has achieved within 50ppm in the field of SiC hot field. We expect to send samples to customers in April. The technical route is suitable for the mainstream PVT long crystal route. The core is to find the same technical breakthrough as photovoltaic. The hot field materials at different positions need to meet the different performance, which can not be achieved by isostatic pressing graphite, Carbon fiber can achieve this goal through different weaving structures. At present, both Toyo carbon and Sigri’s strategies are to withdraw from the photovoltaic market and focus on semiconductors, especially SiC. We judge that with the company’s technology accumulation, it is expected to continue the logic of photovoltaic thermal field and realize import substitution in the semiconductor field.
High purity silicon carbide powder is the key raw material for preparing silicon carbide substrate. At present, the company’s silicon carbide powder is in the development and trial production stage: the preparation process of silicon carbide powder: mix high-purity silicon powder and carbon powder, react at a high temperature above 20 Kbc Corporation Ltd(688598) 00 ℃, synthesize silicon carbide particles with specific crystal form and particle size, and then prepare high-purity silicon carbide powder through crushing, screening, cleaning and other processes. The purity, particle size and crystal form of silicon carbide powder have an important impact on the growth quality of silicon carbide substrate, electrical properties, and even the quality of silicon carbide devices. As a by-product of the company’s vapor deposition process, carbon powder has the advantages of high purity and low cost; At present, the company has trial produced high-purity carbon powder and high-purity silicon carbide powder to accelerate localization.
Profit forecast and investment rating: Kbc Corporation Ltd(688598) in the short term, the production capacity of photovoltaic thermal field is released. In the long term, it is a platform enterprise of high-purity materials. We maintain the parent net profit of 708 / 898 / 1168 million yuan from 2022 to 2024, and the current share price corresponds to 25 / 20 / 15 times of PE, maintaining the “buy” rating.
Risk tip: the competition in photovoltaic industry intensifies, and the R & D progress is less than expected
