\u3000\u3 Guocheng Mining Co.Ltd(000688) 126 National Silicon Industry Group Co.Ltd(688126) )
Key investment points
In 2021, the net profit attributable to the parent company was 146 million yuan, with a year-on-year increase of 67.81%.
In 2021, the company achieved a total operating revenue of 2.467 billion yuan, a year-on-year increase of 36.19%; The net profit attributable to the parent company was 146 million yuan, a year-on-year increase of 67.81%; The net profit attributable to the parent company after deducting non profits was -132 million yuan, with a year-on-year decrease of 149 million yuan. Non recurring gains and losses are mainly 291 million yuan of government subsidies; The substantial increase in performance is mainly due to the strong demand in the semiconductor market, the continuous rise of the company’s production capacity, the substantial increase in production and sales, and the gradual emergence of scale effect.
The production capacity of 300mm silicon wafer is effectively released to further consolidate the leading position of domestic products.
In 2021, the company completed the production line construction of 300000 pieces / month of 300mm semiconductor silicon wafer, becoming the largest semiconductor silicon wafer company in China to produce 300mm semiconductor silicon wafer positive products in mass and realize the full coverage of logic, storage, image sensor (CIS) and other applications. During the reporting period, the company sold 1.7516 million 300 mm semiconductor silicon wafers, a year-on-year increase of 93.63%; The operating revenue was 688 million yuan, a year-on-year increase of 117.94%; The gross profit margin was – 6.17%, with a year-on-year increase of 28.65pct. At the same time, the company has started the construction of 300mm silicon wafer production capacity of 300000 pieces / month, and the construction period is two years. After the completion of the project, the total production capacity of 300mm silicon wafer will reach Shanghai Pudong Development Bank Co.Ltd(600000) pieces / month. In addition, the company’s silicon wafer production capacity of 200mm and below was further improved and the product structure was optimized. At the end of the reporting period, the total production capacity of polishing and epitaxial wafers of 200mm and below exceeded 400000 pieces / month; The total capacity of SOI silicon wafers of 200mm and below exceeds 50000 pieces / month.
300mm semiconductor silicon wafers with 14nm process realize batch supply, customer certification and shipment speed up.
In 2021, the company’s R & D expenditure was 126 million yuan, accounting for 5.1% of the operating revenue. The “02 special project” technology development and industrialization of 300mm silicon wafer for 20-14nm integrated circuits undertaken by the Ministry of science and technology of the company passed the acceptance; The project of research and development and industrialization of 300mm defect free silicon wafer has made major technological breakthroughs. The company successfully passed the technical certification of 300mm semiconductor silicon wafer for 14nm logic products, and realized the batch supply of 300mm semiconductor silicon wafer for 14nm process node application; Successfully developed and verified 300mm semiconductor silicon wafer for 19nm DRAM, and made breakthrough progress; Successfully passed the certification of 300mm polishing wafer for 64 layer and 128 layer 3dnand applications and realized mass supply. At the same time, the company’s 300mm silicon wafer certification cycle began to show a trend of shortening, which is conducive to accelerating the rapid introduction and volume of the company’s products in downstream customers.
Profit forecast and valuation
The company is the leader of semiconductor silicon wafer in China. The production capacity of 12 inch silicon wafer is leading in the country, and the product certification is progressing smoothly. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 214 million, RMB 298 million and RMB 426 million respectively, the corresponding EPS will be RMB 0.08, RMB 0.11 and RMB 0.16/share respectively, and the corresponding PE will be 279, 200 and 140 times respectively.
Risk tip: market competition intensifies and customer certification is less than expected.
