\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 16 Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) )
Key elements of the report:
The company released the performance forecast for the first quarter of 2022, and the net profit attributable to the shareholders of the listed company was RMB 400480 million, with a year-on-year increase of 42.1% – 70.5%; The net profit after deducting non recurring profits and losses was 390470 million yuan, with a year-on-year increase of 61.0% – 94.0%.
Key investment points:
22q1 deduction non performance high growth, industry leaders in hand, sufficient orders. In 21 years, the company achieved significant year-on-year growth in revenue and profit, with revenue + 56.4% year-on-year and net profit attributable to parent company + 100.2% year-on-year. The profit growth rate was much higher than that of revenue, which mainly benefited from the continuous improvement of delivery capacity and the full release of profits under the effect of scale. 22q1 achieved high growth in net profit after deduction of non-profit. At present, the company has sufficient orders on hand. As of 21q3, the company has not completed the contract of crystal equipment and intelligent processing equipment of 17.76 billion yuan, superimposed 21q4 Shuangliang Eco-Energy Systems Co.Ltd(600481) , Gaojing Cecep Solar Energy Co.Ltd(000591) newly signed contracts totaling 3.1 billion yuan, and the total orders on hand exceed 20 billion yuan, about 3.6 times of the unfinished equipment contract of 5.87 billion yuan at the end of 20 years. According to our statistics, this year is still a big year for the expansion of silicon wafer production. The expansion plan of silicon wafer production is about 160gw, which exceeds the expansion scale of about 150gw last year. As the leader of photovoltaic single crystal furnace, the company fully benefits from the expansion of production in the industry.
It is proposed to add code semiconductor equipment to create a new growth curve of performance. The company plans to raise no more than 1.42 billion yuan from specific objects for the 12 inch integrated circuit large silicon wafer equipment test line project (750 million yuan), the annual output of 80 sets of semiconductor material polishing and thinning equipment production and manufacturing project (500 million yuan) and supplementary working capital (424.2 million yuan). Among them, the semiconductor polishing and thinning equipment project will form an annual production capacity of 45 thinning equipment and 35 polishing equipment after its completion. The construction period is 24 months, and the annual sales revenue is expected to increase by 623 million yuan. The company has laid out semiconductor equipment technology for many years, and the technical parameters of thinning machine have reached the international advanced level. The technical parameters of double-sided polishing equipment can be compared with German Peter Wolters. It is one of the few companies capable of producing double-sided polishing equipment in China. In terms of customers, the company’s 8-inch semiconductor processing equipment has achieved mass sales, some 12 inch grinding and polishing equipment have passed customer verification and sales, and other processing equipment are also being verified by customers one after another. At present, the company has signed 141 million yuan 8-12 inch thinning and polishing equipment contract with customer B and 80 million yuan 8-inch polishing line contract with Zhejiang Mtcn Technology Co.Ltd(003026) Zhejiang Mtcn Technology Co.Ltd(003026) .
The three major material fields are developing in a relay way and are optimistic about the performance growth of the company. Focusing on the three major materials of silicon, sapphire and silicon carbide, the company actively promotes the business of semiconductor equipment, sapphire and silicon carbide under the technical advantages of photovoltaic equipment, forming a performance relay. The order volume of semiconductor equipment of 22q1 company increased rapidly year-on-year, and the sapphire material business and auxiliary material consumables business also increased year-on-year. In terms of silicon carbide, the company has established a pilot production line of silicon carbide from raw material synthesis, crystal growth, cutting, grinding and polishing, and the 6-inch silicon carbide wafer has been verified by customers; The company has formed a purchase intention with customer A. in 22-25 years, the customer will give priority to purchasing the company’s silicon carbide substrate, with a total of no less than 230000 pieces. The company actively seeks new growth points of performance under the existing technical advantages of photovoltaic silicon materials, and is expected to form a relay of performance of semiconductor equipment, sapphire and silicon carbide materials in the future.
Profit forecast and investment suggestions: we expect the company’s operating revenue from 2021 to 2023 to be 5.96/95.6/13.18 billion yuan respectively, and the net profit attributable to the parent company to be 1.72/24.8/3.5 billion yuan respectively. The P / E ratio corresponding to the closing price on April 15 is 38.4x and 26.6x/18.8x, maintaining the company’s “buy” rating.
Risk factors: the downstream expansion of photovoltaic industry is less than expected, the research and development of semiconductor equipment technology is less than expected, and the expansion of new products is less than expected
