\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 16 Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) )
Key investment points
2021: performance growth of 100%; The company’s semiconductor equipment orders are expected to exceed 3 billion yuan in 2022
1) performance in 2021: the revenue reached 5.99 billion yuan, with a year-on-year increase of 56%. The net profit attributable to the parent company was 1.71 billion yuan, a year-on-year increase of 99.5%. In 2022, the company plans to strive to achieve the goal of revenue exceeding 10 billion.
2) profitability: the gross profit margin was 39.7%, with a year-on-year increase of 3.1pct, which mainly benefited from the continuous optimization of the company’s cost side. The net interest rate was 29%, with a year-on-year increase of 6.6pct, and the expense rate continued to be optimized during the period.
3) orders on hand: 20.085 billion yuan (including tax), an increase of 242% year-on-year. Among them, the on hand orders of semiconductor equipment were 1.068 billion yuan (including tax), a year-on-year increase of 174%. With the verification and sales of the company’s semiconductor equipment in downstream customers in the past few years, the company aims to achieve a new order of more than 3 billion yuan (including tax) for semiconductor equipment and services in 2022, which will become an important growth point of the company’s orders.
4) inventory: 6.05 billion yuan, an increase of 135% year-on-year. Among them, the issued goods accounted for 76% of the inventory (corresponding to 4.6 billion yuan).
5) R & D Investment: RMB 350 million, with a year-on-year increase of 56, accounting for 5.9% of revenue.
The core highlights of the company’s business in 2021: photovoltaic / semiconductor equipment and Sapphire / silicon carbide materials
1) photovoltaic equipment: benefiting from large-scale technology iteration, the company’s photovoltaic equipment order reached a record high. At present, the single w profit of the head silicon wafer factory is still close to about 10 cents. We expect that the trend of silicon wafer production expansion will continue in 2022, and the company’s photovoltaic equipment orders are expected to remain stable.
2) semiconductor equipment: the company’s first 12 inch hard axis Czochralski silicon single crystal furnace has successfully grown 12 inch single crystal silicon rods; In the field of 12 inch silicon wafer equipment, we have successively developed thinning equipment, double polishing equipment and final polishing equipment. The performance of the equipment has reached the international advanced level and has passed the customer verification stage.
3) silicon carbide materials: form a purchase intention with customer a, and give priority to providing them with no less than 230000 silicon carbide substrates from 2022 to 2025. The company has established a pilot production line of raw material synthesis + long crystal + cutting, grinding and polishing, and completed the development of 6-8-inch thermal field and equipment.
4) sapphire material: the world’s leading 700kg sapphire crystal has been successfully grown.
Q1 in 2022: performance increased by 57% year-on-year; Orders on hand reached 22.2 billion yuan and continued to increase
1) performance of the first quarterly report: the revenue was 1.95 billion yuan, a year-on-year increase of 114%. The net profit attributable to the parent company was 440 million yuan, a year-on-year increase of 57%.
2) profitability: the gross profit margin is 39.9%, with a year-on-year decrease of 3.6pct; The net interest rate was 23.6%, up 2.2pct year-on-year.
3) orders on hand: 22.237 billion yuan (including tax), a year-on-year increase of 113%. Among them, the on hand orders of semiconductor equipment were 1.343 billion yuan (including tax), a year-on-year increase of 140%.
Investment suggestion: optimistic about the company’s future performance in the fields of photovoltaic, semiconductor, sapphire and silicon carbide. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.78/35.4/4.44 billion, with a year-on-year increase of 62% / 27% / 26%, corresponding to 20 / 18 / 14 times of PE. Maintain the “buy” rating.
Risk tip: the R & D Progress of semiconductor equipment is lower than expected; The downstream expansion of photovoltaic production was less than expected.
