\u3000\u3 Guocheng Mining Co.Ltd(000688) 516 Wuxi Autowell Technology Co.Ltd(688516) )
Key investment points
Q1 performance in 2022: a year-on-year increase of 110%; Orders on hand reached 4.9 billion yuan, a year-on-year increase of 77%
1) quarterly results: benefiting from the confirmation of production expansion orders of large-size series welding machines, the company achieved a revenue of 630 million yuan, a year-on-year increase of 70%. The net profit attributable to the parent company was 110 million yuan, a year-on-year increase of 109.5%.
2) profitability: the gross profit margin was 38.6% and the net profit margin was 16.2%, with a year-on-year increase of 1.1pct and 0.9pct.
3) orders on hand: by the end of the first quarter of 2022, the company’s orders on hand had reached 4.89 billion yuan, a year-on-year increase of 77%. Among them, the newly signed orders in Q1 of 2022 were 1.44 billion yuan, a year-on-year increase of 85%. The growth rate of new orders signed by the company showed an accelerating trend.
4) R & D Investment: 46 million yuan, up 46.5% year-on-year, accounting for 7.3% of revenue and 0.2pct higher than Q4.
Core highlights of the company’s operation in 2021:
Component equipment: the company’s smbb series welding machine has won orders from Jingke and Huasheng to meet the demand for substantial cost reduction of hjt and TOPCON components.
Battery equipment: topconlpcvd equipment is added to the large order obtained by the company’s sintering and annealing integrated furnace (optical injection).
Silicon wafer equipment: the company’s single crystal furnace has received batch orders from Jingke, Jingao and Yuze, and the construction of n-type single crystal furnace is smooth.
Semiconductor equipment: the bonding machine has received small batch orders from downstream head customers Tongfu Microelectronics Co.Ltd(002156) , Wuxi delixin.
Lithium battery equipment: the lithium battery module / pack production line has obtained a single order of more than 100 million yuan and 130 million orders of honeycomb energy for the first time.
1) short term: benefit from multiple technological changes of slicing + multiple main grids + multiple slices, and accelerate equipment iteration. The company is the leader in 70% market share of series welding machine, which fully benefits. At the same time, the company’s layout of photovoltaic single crystal furnace and its value is 6 times that of series welding machine, opening up the space for performance growth.
2) medium and long term: the company’s platform layout opens the second growth curve of performance. The company’s semiconductor bonding machine equipment is progressing smoothly, has received the first batch of orders, and is expected to relay the large-scale production of photovoltaic equipment in the next 2-3 years. Lithium battery equipment orders accelerated, covering core high-quality customers.
Semiconductor bonding machine: obtained Tongfu Microelectronics Co.Ltd(002156) batch order; Domestic substitution space is broad, and it is expected to rebuild a Wuxi Autowell Technology Co.Ltd(688516)
1) at present, the company has received orders from Tongfu Microelectronics Co.Ltd(002156) Zi and Wuxi delixin aluminum wire bonding machine Tongfu Microelectronics Co.Ltd(002156) is the first batch of trial customers of the company. After more than one year’s test and verification, the company’s products have reached the level of similar foreign equipment in key technical indicators such as production capacity, precision, yield, productivity and stability Tongfu Microelectronics Co.Ltd(002156) as the world’s fifth largest semiconductor packaging and testing plant, the company’s bonding machine has been recognized and won batch orders. It is expected that the company’s bonding machine business is expected to accelerate in the future.
2) market space: according to the data of China’s customs, the import volume of China’s semiconductor bonding machine in 2021 is about US $1.6 billion (about 10 billion yuan), which is more than twice the market space of photovoltaic series welding machine. The company is the first import substitution company in China. If it goes well, it is expected to rebuild a Wuxi Autowell Technology Co.Ltd(688516) .
Investment suggestion: optimistic about the company’s performance in the field of photovoltaic, semiconductor and lithium battery equipment in the next five years
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will reach RMB 560 / 750 / 920 million, with a year-on-year increase of 50% / 34% / 23%, corresponding to 35 / 26 / 21 times of PE. Maintain the “buy” rating.
Risk warning: the downstream expansion of photovoltaic production is less than expected; The development progress of semiconductor equipment is lower than expected.
