\u3000\u3 Guocheng Mining Co.Ltd(000688) 268 Guangdong Huate Gas Co.Ltd(688268) )
On March 31, Guangdong Huate Gas Co.Ltd(688268) released the annual report of 2021. The company achieved a revenue of 1.347 billion yuan in 2021, with a year-on-year increase of 34.78%; The net profit attributable to the parent company reached 129 million yuan, a year-on-year increase of 21.46%. Corresponding to the single quarter of 21q4, the company achieved a revenue of 352 million yuan, a year-on-year increase of 11.04% and a month on month increase of 1.15%; The net profit attributable to the parent company reached 26 million yuan, a year-on-year decrease of 18.75% and a month on month decrease of 29.73%.
Special gas + industrial gas + equipment blossomed at multiple points, helping the company’s 2021 performance burst Guangdong Huate Gas Co.Ltd(688268) products cover special gas, industrial gas and related gas equipment and engineering, and provide one-stop comprehensive application solutions for gas. Benefiting from the continuous development of emerging fields such as 5g, big data, Internet of things and new energy, the global semiconductor industry market continues to grow. In 2021, benefiting from the growth of downstream demand and the high outlook of the industry, all product lines of the company achieved rapid growth in revenue. In 2021, the special gas business achieved a revenue of 797 million yuan, a year-on-year increase of 45.31%, and the gross profit margin reached 29.37%, a year-on-year decrease of 1.6pct; The industrial gas business achieved a revenue of 266 million yuan, a year-on-year increase of 24.58%, and the gross profit margin reached 11.21%, a year-on-year decrease of 4.23 PCT; The equipment and engineering business realized a revenue of 269 million yuan, a year-on-year increase of 18.64%, and the gross profit margin reached 18.87%, a year-on-year decrease of 3.75 PCT. The decrease in gross profit margin was mainly due to the increase in operating costs caused by power restriction policies and the sharp rise in raw materials.
Cut into the industrial chain of key customers, and the market share increased rapidly. In 2021, the company improved its industrial chain, signed a supply contract for new material on-site gas production project, and opened the field of electronic bulk gas business. In 2021, the sales of the company’s top five customers were 320 million yuan, with a year-on-year increase of 65.47%, accounting for 23.75% of the operating revenue. The concentration of head customers increased significantly, and the position of key customers was further strengthened. At present, the company has formed strong competitive barriers in special gas product categories, core technology research and development, semiconductor customer coverage of more than 8 inches, warehousing, logistics network and supporting services. The company’s electronic special gas products enter the supply chain system of global leading semiconductor enterprises such as Intel, micron technology, Texas Instruments and Hynix, and are exported to more than 50 countries and regions around the world.
Attach great importance to R & D investment and take the lead in product technology. In 2021, the company invested 47 million in R & D expenses, with a year-on-year increase of 55.43%, and the R & D expense rate reached 3.49%. The company extends from small products to large products, and takes silicon-based products as the starting point to lay out the construction of ethylsilane synthesis project. It is expected to be completed and completed in 2022. AR / F / NE, Kr / NE, AR / NE and Kr / F / NE gas mixtures independently developed by the company were certified by ASML, the world’s largest lithography manufacturer, in 2017 and gigaphotonr in Japan in 2021 respectively. It is the only gas company certified in China. In 2021, the products independently developed by the company, such as high-purity monofluoromethane, high-purity difluoromethane and high-purity ethylene, were successfully introduced into semiconductor customers and passed the certification. After the products were put into the market, they were recognized by the downstream. Under the oligopoly of foreign gas companies in high-end fields such as integrated circuits, the company has successfully achieved more than 80% customer coverage of Chinese integrated circuit manufacturers with more than 8 inches through R & D.
Investment suggestion: we expect that the net profit attributable to the parent company in 22 / 23 / 24 years is expected to reach 183 / 240 / 312 million yuan, corresponding to 35 / 27 / 21 times of PE in 22 / 23 / 24 years. The increase in the number of global wafer factories, the rise of integrated circuits, display panels and other fields, as well as the domestic demand for special gases, promote the continuous growth of the company’s profitability and maintain the “recommended” rating.
Risk warning: the price of raw materials rises; Downstream demand is lower than expected; Market competition intensifies.
