\u3000\u30 Zhongyan Technology Co.Ltd(003001) 79 Sf Diamond Co.Ltd(300179) )
Core view
The company plans to increase capital to acquire Tianxuan semiconductor company, and holds a total of 53.2% equity of the company after completion
The company plans to increase the capital of Tianxuan semiconductor by 92.25 million yuan and 7.75 million yuan respectively in cash with Gongqing City Xingda. After the capital increase is completed, the company will directly hold 46.1% equity of Tianxuan semiconductor; At the same time, the company indirectly holds 7% equity of Tianxuan semiconductor through Ningbo Sifang Hongda. After the capital increase is completed, the company is expected to hold 53.2% equity of Tianxuan semiconductor in total, which is included in the consolidation scope.
Tianxuan Semiconductor Co., Ltd. specializes in the development of MPCVD equipment and MPCVD diamond growth process, batch preparation of high-quality and large-size ultra pure CVD diamonds, and carries out industrial applications in high-end advanced manufacturing and consumption fields such as semiconductors and power devices, jewelry, precision tools, optical windows, chip heat sinks and so on;
As one of the companies with the most advanced CVD legal person diamond technology reserve, the largest production expansion and the highest product quality in China, the company effectively realizes the company’s business coverage in the CVD diamond field and improves the company’s core competitiveness through the acquisition of consolidated Tianxuan semiconductor, which is expected to benefit from cultivating the strong demand of the diamond industry and realize rapid development.
Cultivating diamond raw stones: the compound growth rate of demand will be 35% by 2025; The company has CVD core technology and will be in large quantities
Low penetration and high growth of the industry: in 2021, the output penetration rate of cultivated diamonds is about 7%, and the output penetration rate is 5%; The compound growth rate of India’s imports of cultivated diamond raw stones from 2019 to 2021 was 107%, and the year-on-year growth rate of Q1 in 2022 was 105%. There is great room for growth in the future; Low price, real diamonds, environmental protection and new consumption jointly promote the rise of demand for cultivated diamonds. It is expected that by 2025, the global demand for cultivated diamond raw stones will increase from 14.3 billion to 31.3 billion, with a compound growth rate of 35%;
The company independently mastered CVD equipment manufacturing and diamond production technology, actively expanded and cultivated diamonds through cooperation with colleges and universities, and long-term layout of high-end industrial diamond fields such as third-generation semiconductors. At present, Tianxuan semiconductor plans to produce about 100 MPCVD units, and is expected to greatly expand production and cultivate diamonds in the future. According to the official report of Tianxuan semiconductor, the company has stably produced colorless CVD cultivated diamonds, which have been identified as E / F color grade by professionals.
The “import substitution + key customer strategy” of petroleum composite sheet, and the superhard cutting tools grow rapidly with the high-end manufacturing
In 2021, the company achieved a revenue of 420 million yuan, a year-on-year increase of 31%, and the net profit attributable to the parent company was 90 million yuan, a year-on-year increase of 22%; The company’s main resource exploitation / engineering construction superhard composite (mainly used for oil drilling) accounts for 56% of the revenue and 61% of the gross profit margin; The income of superhard cutting tools accounts for 38% and the gross profit margin is 38%;
With the recovery of the oil service market, the superhard composite sheet of the company is gradually in large volume, seizing the share of imported products through the Chinese market, deeply binding large customers in the foreign market, and the business is expected to reach a new high; The company’s superhard tool business benefited from import substitution + alloy substitution + category expansion + opening up new customers and new markets, which grew rapidly with the demand of high-end manufacturing.
Investment suggestion: cultivate diamond + industrial diamond leader, Ordnance Group intelligent ammunition leader, dual drive of military and civilian products. It is estimated that the net profit attributable to the parent company will be 150 / 2.3 / 290 million from 2022 to 2024, with a year-on-year increase of 65%, 51% and 27%, a compound growth rate of 47%, and PE of 40 / 26 / 21 times, maintaining the rating of “overweight”.
Risk tip: the risk of changing the competition pattern of cultivating diamonds.
