\u3000\u3 Guocheng Mining Co.Ltd(000688) 019 Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) )
Key investment points: the income of chemical mechanical polishing fluid products increased rapidly; Continuous R & D investment and breakthroughs in multiple new products; Change of customer strategy and obtain new orders from overseas wafer factories.
Chemical mechanical polishing fluid products have achieved a full category layout and grow rapidly. Functional wet electronic chemicals focus on the field of high-end products. At present, the company has two main businesses: ① chemical mechanical polishing fluid products. The company carries out a full category layout to provide customers with complete one-stop solutions. Copper and copper barrier polishing liquid and dielectric polishing liquid continue to expand market share; Tungsten polishing liquid is introduced smoothly and grows rapidly at the client; The polishing liquid based on ceria Abrasives has also made a breakthrough in customer development and increased rapidly. ② Functional wet electronic chemicals, the company focuses on high-end product fields such as IC front wafer manufacturing and rear packaging. Among them, the post etching cleaning solution for integrated circuits has made a breakthrough in the client, and the dosage has further increased.
Continue to invest in R & D and achieve breakthroughs in multiple product fields. In 2021, the R & D expenditure was 153 million yuan, with a year-on-year increase of 72.23%, accounting for 22.30% of the sales revenue. We continued to increase R & D investment and improve our core competitiveness. The company has successively made breakthroughs in some new products: ① the aluminum polishing solution used in the 28nm technology node HKMG process has made a major breakthrough, which has been verified by customers, broken the overseas monopoly and achieved mass production; ② The polishing liquid products based on ceria Abrasives have made important progress in the field of memory chips, have achieved mass production and sales, and are in the stage of customer demonstration in the field of logic chips; ③ The fine polishing liquid of silicon has made a breakthrough, and the technical performance has reached the same level as that of international mainstream suppliers; ④ A variety of silica sols have passed internal tests in a variety of polishing fluid products of the company, and are actively cooperating with customers in testing and verification; ⑤ Successfully established a functional etchant technology platform for the unique requirements of 12 inch advanced process, and started client verification.
The customer’s strategy has changed and new orders have been obtained from Fab factories in Chinese Mainland by foreign-funded chip enterprises. At present, the company has formed seven product platforms: copper and copper barrier polishing fluid, dielectric material polishing fluid, tungsten polishing fluid, ceria abrasive based polishing fluid, substrate polishing fluid, functional wet electronic chemicals, and new materials and new processes. In the annual report of 2021, the company disclosed that, in addition to continuing to deepen its service to China’s local Fab factories and continue to obtain new orders, the company also received new orders from several leading foreign chip enterprises in Chinese Mainland Fab factories, and won the annual outstanding supplier award from a number of domestic and overseas first-class OEM factories. We believe that this is a major change and breakthrough in the company’s customer strategy based on its seven product platforms. It will have the opportunity and ability to serve more overseas OEM customers, so as to obtain new impetus for further development.
Profit forecast and valuation. We expect the company’s 2022e-2024e revenue to be 1.025 billion yuan, 1.523 billion yuan and 2.125 billion yuan respectively, with a year-on-year increase of 49.27%, 48.61% and 39.50%; The net profit attributable to the parent company was 217 million yuan, 306 million yuan and 409 million yuan respectively, with a year-on-year increase of 73.72%, 41.00% and 33.35%. In combination with the valuation of comparable companies, 70xpe is valued in 2022, with the corresponding target price of 285.8 yuan, maintaining the rating of “better than the market”.
Risk warning: covid-19 pneumonia affects the normal operation of the company, intensifies market competition, and the demand of downstream end customers is lower than expected.
