\u3000\u3 Shengda Resources Co.Ltd(000603) 690 Pnc Process Systems Co.Ltd(603690) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022.
The volume of semiconductor wet equipment increased rapidly, and the company’s revenue continued to grow at a high speed
In 2021, the company achieved a revenue of RMB 2.084 billion, with a year-on-year increase of 49.18%, which is basically in line with our expectations. It is mainly due to the high prosperity of the semiconductor industry. The company’s semiconductor sector business, especially the cleaning equipment, has sufficient orders, and the shipment volume has increased significantly. In terms of products: ① the revenue of semiconductor equipment is RMB 701 million, with a year-on-year increase of 222.06%. The performance is extremely excellent. The main reason is that the company’s wet equipment continues to receive repeated orders at existing users, And continue to develop new users. The annual orders reached 1.12 billion yuan, with a year-on-year increase of 111.32%. The delivery of wet equipment increased significantly in 2021. ② The high-purity process integration system achieved an operating revenue of 1.078 billion yuan, a year-on-year increase of 24.86%, continuing the rapid growth trend; ③ The operating revenue of optical sensors and optical devices was 303 million yuan, a year-on-year decrease of 3.72%, and the performance was relatively stable. In 2022q1, the company achieved an operating revenue of 548 million yuan, a year-on-year increase of 136.98%. Under the adverse impact of the Shanghai epidemic, it still grew rapidly, which is better than our expectation. From January to April 2022, the company added 1.802 billion yuan of orders, including 631 million yuan of new orders for semiconductor wet equipment. With the support of sufficient orders, the revenue in 2022 is expected to continue its rapid growth trend.
The gross profit margin of wet equipment has entered the climbing stage, and the non recurring profit and loss affects the net profit margin of the company
In 2021, the company realized a net profit attributable to the parent company of RMB 282 million, with a year-on-year increase of 8.12%, slightly lower than the growth rate of the revenue end. In 2021, the company’s net sales interest rate was 13.64%, with a year-on-year decrease of -5.02pct, and the profitability decreased. ① At the gross profit end, the overall gross profit margin of the company was 36.19% in 2021, with a year-on-year increase of -0.60pct. The gross profit margins of high-purity process integration system, semiconductor equipment, optical sensors and optical devices were 34.71%, 32.48% and 50.43% respectively, with a year-on-year increase of + 2.95pct, + 2.63pct and -4.92pct respectively. The decline in the overall gross profit margin was mainly due to the decline in the proportion of revenue from optical sensors and optical devices, and the gross profit margin of wet cleaning equipment was in the climbing stage. ② On the expense side, the company’s expense rate during 2021 was 23.82%, with a year-on-year rate of -2.23pct, of which the sales, management (including R & D) and financial expense rates were -0.35pct, -0.19pct and -1.69pct respectively, mainly due to the scale effect. ③ In 2021, the company’s non recurring profit and loss was 120 million yuan, with a year-on-year increase of – 20.24%, mainly due to less changes in fair value. In 2021, the company’s net profit deducted from non parent company increased by 46.57% year-on-year, close to the revenue growth rate, and the real profit level was stable. In 2022q1, the company realized a net profit attributable to its parent company of 22 million yuan, a year-on-year decrease of 70.78%, mainly due to the indirect holding of Will Semiconductor Co.Ltd.Shanghai(603501) current fair value change of 23 million yuan by the company. Excluding this part of influence, the net profit deducted from non attributable to its parent company in 2022q1 was 39 million yuan, a year-on-year increase of 1131%, and the real profit level improved significantly.
Wet process equipment covers 14mn process technology, and domestic substitution opens up growth space
The technical route deployed by the company’s wet process equipment: provide trough equipment and single chip microcomputer equipment to cover all wet processes involved in mature and advanced processes of China’s production line. In addition, the wet process equipment provided by the company can also be applied to advanced processes, mainly storage (DRAM, 3D flash) and advanced logic products. It also covers some special processes, such as wafer process, compound semiconductor, metal stripping process, etc. The company obtained equipment orders for all processes at the 28nm node of the advanced process, and also obtained orders for processes below 14nm. Driven by domestic substitution, it is expected to achieve rapid development in the medium and long term.
Profit forecast and investment rating: considering the impact of the epidemic, we expect the net profit attributable to the parent company from 2022 to 2024 to be 402 (previous value 483) million yuan, 574 (previous value 716) million yuan and 764 million yuan respectively. The current stock price corresponds to 25, 17 and 13 times of dynamic PE respectively, maintaining the “buy” rating.
Risk tip: the R & D of new products is less than expected, and the breakthrough of order customers is less than expected
