\u3000\u3 Guocheng Mining Co.Ltd(000688) 019 Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) )
Core view
In 2021, the net profit deducted from non parent company increased by 55%, and 4q21 revenue hit a quarterly high. In 2021, the company’s revenue was 687 million yuan (yoy63%), the net profit attributable to the parent was 125 million yuan (yoy-19%), and the net profit not attributable to the parent was 91 million yuan (yoy55%). Among them, the revenue of 4q21 was 216 million yuan (yoy90%, qoq15%), and the net profit attributable to the parent company was 28 million yuan (yoy-31%, qoq13%), with a quarterly high. From the perspective of profitability, in 2021, the gross profit margin decreased by 0.95pct to 51.08%, and the net profit margin decreased by 18.24pct to 18.22%. The large decrease in net profit margin was mainly due to the income from changes in fair value of RMB 90.37 million in 2020 (21% of income) and only RMB 8.78 million in 2021. In addition to continuing to serve China’s Fab plant and continuing to obtain new orders, the company has also obtained several new global orders for foreign chip companies in Chinese mainland Fab plant.
Breakthroughs have been made in a variety of products and technologies to speed up the independent control of core raw materials. In 2021, the company’s CMP polishing fluid revenue was 594 million yuan (yoy58%), accounting for 87% and the gross profit margin was 55%. The tungsten polishing liquid is introduced smoothly at the client; The polishing liquid based on ceria abrasive has been mass produced in 3dnand advanced process and is gradually increasing; The aluminum polishing solution used for the 28nm technology node HKMG process has been verified by customers and achieved mass production. The revenue of functional wet electronic chemicals of the company is 91 million yuan (yoy92%), accounting for 13% and the gross profit margin is 22%. Among them, the cleaning solution after etching of aluminum process and copper Damascus process realizes mass production; 28nm technology node rear section hard mask copper Damascus process post etching cleaning fluid technology has been stably used on the line of important customers; The cleaning fluid after polishing has been mass produced and applied to the field of 12 inch chip manufacturing. In addition, the company accelerated the independent control of core raw materials through the establishment of joint ventures or self research, and some key raw materials were successfully mass produced.
Seven product platforms have been formed, and the global market share of CMP polishing fluid is about 5%. The company has comprehensively carried out the layout of the full category product line in the CMP polishing liquid sector, aiming to provide a complete one-stop solution; In the functional wet electronic chemicals sector, we focus on high-end product fields such as IC front wafer manufacturing and rear packaging, and are committed to overcoming the difficulties of leading technology nodes. While continuously improving technology and product capabilities vertically, broaden product categories horizontally, and provide customers with more competitive product portfolio and solutions. At present, the company has formed seven product platforms: copper and copper barrier polishing fluid, dielectric material polishing fluid, tungsten polishing fluid, ceria abrasive based polishing fluid, substrate polishing fluid, functional wet electronic chemicals, and new materials and new processes. According to techet’s report, the share of CMP polishing fluid in the global market is about 5%.
Investment suggestion: new products are continuously introduced into customers and the “overweight” rating is maintained
We estimate that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 247 / 341 / 420 million (the value before 20222023 will be RMB 197 / 252 million), with a year-on-year growth rate of 97 / 38 / 23%; EPS is 4.63/6.40/7.89 yuan, and the PE corresponding to the share price on April 14, 2022 is 53 / 38 / 31x respectively. The company’s new product R & D and verification went smoothly and maintained the “overweight” rating.
Risk tip: the demand is less than expected, the product R & D is less than expected, and the customer import is less than expected.
