\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 66 Konfoong Materials International Co.Ltd(300666) )
In 2021, the revenue increased by more than 35%, and the deduction increased by 26%. The company issued the 2021 annual report:
1) for the whole year of 2021, the revenue reached 1.594 billion yuan (32% for tantalum target, 17% for aluminum target, 13% for titanium target and 12% for parts and components), with a year-on-year increase of + 37%; The net profit attributable to the parent company was 107 million yuan, a year-on-year increase of – 28%, and the net profit not attributable to the parent company was 76 million yuan, a year-on-year increase of + 26%; The gross profit margin was 25.56%, year-on-year -2.54pct, and the net profit margin was 6.23%, year-on-year -6.04pct. During the reporting period, the company increased R & D investment, with R & D expenses of 98 million yuan, a year-on-year increase of + 33%, and R & D expense rate of 6.16%. The total amount of non recurring profit and loss items is 30 million yuan, including 41 million yuan of government subsidies and 10 million yuan of other non operating expenses.
2) 21q4: revenue of 470 million yuan, up + 46% year on year and + 18% month on month; The net profit attributable to the parent company was 11 million yuan, with a year-on-year increase of – 69% and a month on month increase of – 69%; Deduction of net profit not attributable to parent company was 07 million yuan, up + 472% year on year and – 76% month on month; The gross profit margin was 22.27%, with a year-on-year increase of + 2.72 PCT and a month on month increase of -3.81 PCT; The net interest rate was 2.23%, year-on-year -8.66pct and month on month -6.63pct.
Q1 deduction increased by 95% year-on-year and 500% month on month. At the same time, the company released the performance report for the first quarter of 2022, realizing a revenue of 490 million yuan, a year-on-year increase of + 54% and a month on month increase of + 4%; The net profit attributable to the parent company was 33 million yuan, with a year-on-year increase of + 90% and a month on month increase of + 200%; Deduct the net profit not attributable to the parent company of 42 million yuan, with a year-on-year increase of + 95% and a month on month increase of + 500%; The gross profit margin was 29.96%, year-on-year + 0.04pct, month on month + 7.69pct; The net interest rate was 5.99%, with a year-on-year increase of + 1.08pct and a month on month increase of + 3.76pct.
In 2021, the whole line of target products will continue to be advanced, and the growth rate of each target is bright. Semiconductor targets are the leader in the mainland, covering a variety of mainstream targets of aluminum, titanium, tantalum and copper. The most advanced products have entered the advanced node of 5nm. In 2021, all targets have developed steadily. According to the products:
1) ultra high purity tantalum target: the revenue was 518 million yuan, with a year-on-year increase of + 28%, and the gross profit margin was 22.99%, with a year-on-year increase of -2.30pct. More models passed the evaluation of world-class customers, and TSMC, Hynix, Semiconductor Manufacturing International Corporation(688981) and other large customers increased their procurement.
2) ultra high purity aluminum target: the revenue is 277 million yuan, with a year-on-year increase of + 31%, and the gross profit margin is 37.46%, with a year-on-year increase of + 0.58pct. The advantages of raw material localization appear, the global market share is further expanded, and the gross profit margin is improved.
3) ultra high purity titanium target: the revenue is 214 million yuan, with a year-on-year increase of + 36%, and the gross profit margin is 39.54%, with a year-on-year increase of -2.47 PCT. The upstream raw materials are localized, and the global market share is further expanded. At the same time, 300mm ultra-high purity titanium target has achieved mass production and delivery in the international famous IDM memory chip head factory.
4) ultra high purity copper and copper alloy targets: more models of ultra-high purity copper and copper manganese alloy passed the evaluation, and the purchase volume continued to increase. Copper aluminum alloy targets passed the evaluation of TSMC and Huahong Hongli, and received batch orders; HCM copper target has received batch orders from world-class foundry.
5) actively promote production expansion projects and grasp the opportunity of domestic substitution. On December 2021, the fixed increase plan was issued and 70000 semiconductor target production capacity was raised and invested; The convertible bond project was released on December 2020 to show the expansion of target materials and machine parts. On September 2021, the convertible bond was listed and traded on the Shenzhen Stock Exchange. The revenue of mainland China accounted for 34% in 2020 and increased to 43% in 2021. In the future, with the completion and operation of production expansion projects, the company will continue to enjoy domestic alternative dividends. The global semiconductor target market is US $1.5 billion + and is monopolized by overseas oligarchs. Cr4 is as high as 80%. The market share of the company is about 10%, and the growth space is still broad.
Semiconductor parts have more than ten times the growth space. In 2021, the company’s product volume is rapid and the growth is gratifying. In 2021, the revenue of parts and components was 184 million yuan, a year-on-year increase of 240%, entering the stage of accelerated volume, with a gross profit margin of 23.93%, a year-on-year increase of + 10.43pct, and the profitability was improved due to large-scale operation. The products include PVD / CVD / etching machine and other parts, which have been replaced by domestic products in many OEM factories, forming strategic cooperation with Naura Technology Group Co.Ltd(002371) , tuojing technology, Kingsemi Co.Ltd(688037) and other equipment factories. It has been five years since the layout of parts and components. At present, three major production bases have been built in Yuyao, Ningbo, Fengxian, Shanghai and Shenbei, Shenyang, realizing the mass production of parts and components with multiple varieties, large quantities and high quality, and filling the gap of parts and components in the mainland. In 2022, the global semiconductor parts market is close to US $30 billion, the market is monopolized by the United States and Japan, the localization rate in the mainland is very low, and the friction between China and the United States catalyzes the strong willingness of customers to replace. The company will effectively support the demand in the mainland.
Investment suggestion: the company is the absolute leader of target materials in mainland China. The superposition of parts and components opens up more than ten times the growth space, which is expected to fully benefit from the development of global semiconductor industry and domestic substitution opportunities. At the same time, it has both scarcity and growth. It is estimated that the operating revenue of the company in 2022, 2023 and 2024 will be 24 / 35 / 5 billion yuan respectively, the net profit will be 220 / 3.6/540 million yuan, and the corresponding PE valuation will be 47 / 29 / 19 times, maintaining the “buy” rating.
Risk warning events: the progress of parts business is less than expected, the progress of self-made raw materials upstream of the target is less than expected, the progress of target production expansion is less than expected, the risk of price rise of metal raw materials, the risk of high overseas proportion of the company’s business, the risk of deviation in industry scale calculation, and the risk of lagging behind the information based on
