\u3000\u30003 An Hui Wenergy Company Limited(000543) 00054)
Hubei Dinglong Co.Ltd(300054) issued the 2021 annual report. The annual revenue of the company was 2.356 billion yuan, yoy + 29.67%, and the net profit attributable to the parent company was 214 million yuan, turning losses into profits, and the non net profit attributable to the parent company was 207 million yuan. In the fourth quarter alone, the revenue was 705 million yuan, yoy + 25.2%, QoQ + 27.0%, and the net profit attributable to the parent company was 63 million yuan, yoy + 115.7%, QoQ + 6.3%. The annual revenue of polishing pad was 302 million yuan, with a significant year-on-year increase of 284%, of which more than 80% were 12 inch products, with a net profit of 110 million yuan and a net profit margin of 36.3%. In addition, the company released the performance forecast for the first quarter. It is expected to achieve a revenue of 560580 million yuan in 2022q1, yoy + 7.7-11.6%, net profit attributable to the parent company of 65-75 million yuan, yoy + 73.2-99.8%, median month on month increase of 11.2%, non net profit attributable to the parent company of 60-70 million yuan, yoy + 14.43-33.5%, and median month on month increase of 14.1%.
The layout of CMP materials has been continuously improved and continued to grow in large quantities. In terms of CMP polishing pads, Dinglong has achieved full process and full node coverage. In 2021, Dinglong has become a primary supplier for some customers and achieved large-scale profits. It has a significant leading advantage. In the future, with the expansion of customer capacity and the increase of the company’s share, the polishing pads are expected to continue to be in large quantities. The company has made substantial breakthroughs in the field of CMP polishing fluid. The oxide layer polishing fluid products have obtained small orders, and the al process polishing fluid has entered the ton purchase stage of customers. In addition, the company has realized the independent preparation of core raw material grinding particles, breaking the overseas monopoly and improving its profitability. In terms of cleaning fluid, the company has obtained small orders for CMP cleaning fluid in Cu process.
Soft materials are ready to go, opening another growth curve. In 2021, Dinglong YPI completed customer verification and achieved nearly 10 million revenue. In 2022, with the increase of the production rate of downstream AMOLED plants, the company’s YPI may further increase its volume. In addition, the company expects that in 2025, the market scale of PSPI in China is expected to reach 3.5 billion yuan and tfe-ink is close to 1 billion yuan. At present, the industry is monopolized by overseas. The pilot test of Dinglong PSPI and tfe-ink products has been completed and the customer verification is good. The soft display layout is gradually opening another growth pole for the company.
Continue to invest heavily in R & D and improve core competitiveness. In 2021, R & D investment was RMB 284 million, accounting for 12.1% of revenue. In recent three years, R & D investment was RMB 640 million, accounting for 12.0% of revenue in three years. By the end of 2021, the number of R & D personnel of the company has reached 830 (650 in 2020), accounting for 25.6% of employees. The company has always attached importance to the layout of new products and the research and development of upstream core materials, so as to consolidate its market position and maintain a high profit level.
Xiantao Industrial Park was invested to expand production, providing strong support for the layout of Pan semiconductor materials. The company plans to invest a total of 750-1 billion yuan to build the industrialization of polishing materials for integrated circuit CMP and the industrialization of key materials for photoelectric semiconductor flexible display in two phases, including the annual output of 20000 tons of CMP polishing fluid (constructed in two phases), 10000 tons of CMP cleaning fluid, 1000 tons of PSPI, 600 tons of ink, grinding particles for the third generation of semiconductors, CMP high-purity grinding particles Other key materials industrialization projects for photoelectric semiconductor flexible display. It is estimated that the net profit of the parent company will be maintained at 202434 billion yuan and 202424 billion yuan respectively, and the net profit of 202424/2.62 billion yuan will be maintained at 202434 billion yuan and 202424/2.72 billion yuan respectively.
Risk warning: the progress of new product R & D and customer introduction is less than expected, and the downstream demand is less than expected