\u3000\u3 Shengda Resources Co.Ltd(000603) 690 Pnc Process Systems Co.Ltd(603690) )
Event:
The company issued the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 2.084 billion yuan, a year-on-year increase of 49.18%; The net profit attributable to the parent company was 282 million yuan, a year-on-year increase of 8.12%; The net profit attributable to the parent company after deduction was 162 million yuan, with a year-on-year increase of 46.57%. In 2022q1, the operating revenue was 548 million yuan, with a year-on-year increase of 136.98%; The net profit attributable to the parent company was 22 million yuan, a year-on-year decrease of 70.78%; The net profit attributable to the parent company after non deduction was 39 million yuan, a year-on-year increase of 113087%.
Comments:
The semiconductor equipment business sector began to make efforts, and the performance in 2021 was brilliant
In 2021, the company’s performance achieved substantial growth. In terms of industries, the company’s Pan semiconductor field achieved 1.572 billion yuan, a year-on-year increase of 75.90%, accounting for more than 75%; Optoelectronic business achieved a revenue of 303 million yuan, down 3.72% year-on-year; The biological and pharmaceutical business achieved a revenue of 207 million yuan, a year-on-year increase of 10.55%. At the same time, the profitability of the company remained stable. In 2021, the gross profit margin and net profit margin after deduction were 36.19% and 7.78%, while in 22q1, the gross profit margin and net profit margin after deduction were 35.22% and 7.07%.
With the rapid development of semiconductor wet equipment, 631 million yuan of new orders have been added since 2022
Benefiting from the rapid development of the industry, 1.802 billion yuan of new orders were added from January to April 2022, including 631 million yuan of new orders for semiconductor wet equipment. The company’s products cover all wet processes involved in mature processes and advanced processes in China’s production lines, benchmarking with Japan’s leading DNS. At present, the company has obtained equipment orders for the whole line and equipment orders for all processes at the 28nm node of advanced processes on several mature process production lines; In the process below 14nm, orders for four wet equipment were also obtained. In terms of technical reserves, the company continues to invest resources in high-order process equipment such as multi reaction chamber-18 chamber and supercritical cleaning.
Profit forecast and investment suggestions
Considering the high prospect of the industry, we expect the revenue of 22-23 years to be 2.933/3.862 billion yuan (original value: 2.543/2.966 billion yuan), the net profit attributable to the parent company to be 3.62/494 billion yuan (original value: 4.19/478 billion yuan), and the profit forecast for 24 years to be 4.705 billion yuan, the net profit to be 623 million yuan, the EPS to be 1.14/1.55/1.96 yuan / share, and the corresponding PE to be 28 / 20 / 16x respectively. Considering the company’s nearly three-year history of PE (24-94x), combined with the industry average PE 72x, the company was given a PE of 35 times in 22 years, corresponding to the target price of 39.73 yuan, which was raised to the “buy” rating.
Risk tips
The order of high-purity system did not meet the expectation, the progress of cleaning equipment base slowed down, and the downstream demand did not meet the expectation.
