\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 66 Konfoong Materials International Co.Ltd(300666) )
China's semiconductor target leader, with high growth in the first quarter, maintained the "buy" rating
The company released its 2021 annual report and the first quarterly report of 2022 on April 26, 2022. In 2021, the company achieved a revenue of 1.594 billion yuan, a year-on-year increase of + 36.64%; The net profit attributable to the parent company was 107 million yuan, a year-on-year increase of - 27.55%; Deduct non net profit of 76 million yuan, a year-on-year increase of + 25.59%; The gross profit margin was 25.56%, with a year-on-year increase of -2.54pcts. In 2021q4, the company achieved a revenue of 470 million yuan in a single quarter, a year-on-year increase of + 46.38% and a month on month increase of + 17.60%; The net profit attributable to the parent company was 11 million yuan, with a year-on-year increase of - 69.44% and a month on month increase of - 67.15%; Deduct non net profit of 07 million yuan, a year-on-year increase of + 471.77% and a month on month decrease of - 74.33%. 2022q1 achieved revenue of 490 million yuan in a single quarter, a year-on-year increase of + 54.29% and a month on month increase of + 4.08%; The net profit attributable to the parent company was 33 million yuan, a year-on-year increase of + 90.15% and a month on month increase of + 194.08%; Deduct non net profit of 42 million yuan, a year-on-year increase of + 94.75% and a month on month increase of + 476.74%. The downstream demand is strong, the company actively expands production, while the semiconductor parts business is growing rapidly and the prospect is promising. We maintain the performance forecast for 20222023 and add the performance forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 248 / 313 / 434 million yuan, corresponding to EPS of 1.07/1.35/1.87 yuan, and the current share price corresponding to PE of 41.0 / 32.5/23.4 times, maintaining the "buy" rating.
With the rapid growth of parts business, the company has expanded its production capacity and sufficient growth momentum
In 2021, the sales of tantalum targets were + 28.02%, ultra-high purity aluminum targets and ultra-high purity titanium targets were + 30.95% and + 35.72% respectively year-on-year. Copper manganese and copper aluminum alloy targets have passed the mass production evaluation of important customers such as TSMC and Huahong Hongli, and successfully began to obtain batch orders. The company continued to invest in the research and development of parts manufacturing process, built three parts production bases in Yuyao, Ningbo, Fengxian, Shanghai and Shenbei, Shenyang, realized mass production of various varieties, large quantities and high-quality parts, filled the capacity gap of China's parts industry, and formed strategic cooperation with China's semiconductor equipment leader Naura Technology Group Co.Ltd(002371) , tuojing technology, Kingsemi Co.Ltd(688037) , Shanghai shengmei, Shanghai microelectronics, Yitang technology and other manufacturers, All kinds of newly developed semiconductor precision parts and components have been widely used in PVD, CVD, etching machine and other semiconductor equipment. In 2021, the revenue of parts business reached 184 million yuan, a year-on-year increase of + 239.96%, and the gross profit margin reached 23.93%. In 2021, RMB 520 million was raised by issuing convertible bonds for the construction of target and component production bases for flat panel display in Huizhou and Wuhan. At the same time, the company plans to increase 1.65 billion yuan to expand the production of semiconductor targets and the construction of R & D center, and the company has sufficient growth momentum.
Risk warning: the production line construction is less than the expected risk; Risk of decline in industry demand; Industry competition intensifies risks.
