\u3000\u3 Guocheng Mining Co.Ltd(000688) 012 Advanced Micro-Fabrication Equipment Inc.China(688012) )
Core view
Advanced Micro-Fabrication Equipment Inc.China(688012) 2021 achieved an operating revenue of 3.108 billion yuan, with a year-on-year increase of 36.72%; The net profit attributable to the shareholders of the listed company was 1.011 billion yuan, a year-on-year increase of 105.49%; The deduction of non net profit attributable to shareholders of listed companies was 324 million yuan, with a year-on-year increase of 1291.1%; The amount of newly signed orders was 4.13 billion yuan, a year-on-year increase of 90.5%.
Etching equipment has maintained a leading edge and its market share has continued to increase. In 2021, the company produced and shipped 298 cavities of CCP etching equipment, with a year-on-year increase of 40%, and the market share of some key customers has entered the top three or even the top two; 134 cavities of ICP etching equipment were produced and shipped, with a year-on-year increase of 235%, and repeated orders for logic circuits of 5nm and below and 3dnand chip production lines were obtained. In 2021, the company launched the first CCP etching equipment primoad-rie200 and dual reaction table ICP etching equipment primotwin star for 8-inch wafer processing, and the product line was further improved.
The number of newly signed orders of MOVCD increased rapidly. In 2021, MOCVD equipment revenue was 503 million yuan; The gross profit margin reached 33.77%, significantly higher than 18.65% in 2020. In June 2021, the company released the MOVCD device prismonimax for miniled. By the end of the first quarter of 2022, the order volume had exceeded 180 cavities. In addition, the company actively laid out the third-generation semiconductor equipment for power device applications, and launched the development of MOCVD equipment for manufacturing microleds, power devices and other production.
The industrialization construction project was smoothly promoted. In 2021, the company successfully completed the refinancing issue, raised about 8.2 billion yuan and invested in the construction of three bases: the port industrialization base of Zhongwei, the production base of Nanchang Zhongwei Semiconductor Equipment Co., Ltd. and the port headquarters and R & D base of Zhongwei. After the construction of each project is completed and put into use, the production capacity of the company’s semiconductor equipment will be greatly improved and the company’s product R & D capacity will be strengthened.
Investment advice
It is estimated that the company’s revenue from 2022 to 2024 will be RMB 4.496/61.47/7.895 billion respectively, with a year-on-year increase of 44.6% / 36.7% / 28.4%, and the net profit will be RMB 1.062/13.64/1.756 billion respectively, with a year-on-year increase of 5.1% / 28.4% / 28.7%. The current price corresponds to 67 times of PE in 2022. Considering the strong demand in the downstream market and the release of new production capacity, the “buy” rating is given for the first time.
Risk tips
The risk that the R & D of new products is less than expected and the risk of intensified industry competition.
