\u3000\u3000 Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) (300316)
Events
On January 12, the company released the forecast of 2021 annual report. In 2021, the company realized a net profit attributable to the parent company of RMB 1.58-1.84 billion, a year-on-year increase of 84% – 114%; Deduct non net profit of RMB 1.52-1.77 billion, with a year-on-year increase of 85% – 116%, exceeding market expectations.
Brief comment
It is estimated that the orders on hand exceed 20 billion yuan, and the orders on hand are sufficient
By the end of 2021q3, Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) outstanding contracts for crystal growth equipment and intelligent processing equipment totaled 17.8 billion yuan (including tax). Superimposed on the 1.5 billion orders signed with Gaojing in October and the 1.6 billion yuan orders signed with Shuangliang in November, the orders on hand are expected to exceed 20 billion yuan. The company occupies an absolute leading position in the non Longji market, and its future performance is expected to grow rapidly.
With a fixed increase of 5.7 billion yuan, SiC and semiconductor equipment are added, and SiC extends from the equipment end to the material end
1) silicon carbide substrate wafer production base project: the project investment is 3.36 billion yuan. It is planned to build an annual production capacity of 400000 conductive and semi insulating silicon carbide substrates with an annual output of more than 6 inches in Yinchuan, Ningxia. The company is setting up a pilot production line from raw material synthesis, crystal growth, cutting, grinding and polishing, and has grown 6-inch conductive silicon carbide crystals. Through internal testing, the main performance meets the requirements of industrial grade wafers in the industry, and is undergoing third-party testing and downstream epitaxial verification. At the same time, the company has successfully developed silicon carbide long crystal furnace, polishing machine, epitaxy and other equipment to build a platform company of equipment + materials.
2) semiconductor large silicon wafer equipment test line project: the project investment is 750 million yuan, and it is planned to build a 12 inch semiconductor large silicon wafer equipment pilot line. It helps to carry out the test and verification of semiconductor equipment and processes for customers, build a good customer relationship, and strengthen the first mover advantage of supporting the company’s industrial chain.
3) production and manufacturing project with an annual output of 80 sets of semiconductor material polishing and thinning equipment: the project investment is 500 million yuan. It is planned to build an annual output of 35 sets of semiconductor material thinning equipment and 45 sets of semiconductor material polishing equipment in Shaoxing, Zhejiang Province. By the end of 2021q3, the company’s semiconductor equipment orders in hand were 730 million yuan, and the company is expected to further improve its industrialization supporting capacity in the field of semiconductor wafer equipment.
Profit forecast and investment suggestions
It is estimated that the revenue from 2021 to 2023 will be RMB 6.7 billion / 9.7 billion / 12.6 billion, with a year-on-year increase of 77% / 44% / 30% and an increase of 2% / 8% / 16%; It is estimated that the net profit attributable to the parent company in 21-23 will be RMB 1.7 billion / 24 / 31 billion, with a year-on-year increase of 98% / 42% / 31%. The net profit attributable to the parent company in 2021-23 will be increased by 8% / 15% / 26%, corresponding to 45 / 32 / 24 times of PE. Maintain the “buy” rating.
Risk tips
The expansion of downstream photovoltaic silicon wafer is less than expected, and the localization of semiconductor equipment is less than expected.
