\u3000\u3 Guocheng Mining Co.Ltd(000688) 630 Circuit Fabology Microelectronics Equipment Co.Ltd(688630) )
Direct writing lithography equipment head enterprise, with rapid growth in performance.
① deeply cultivate direct writing lithography equipment and rank among the first echelon of the industry. Founded in 2015, the company specializes in the R & D and production of direct imaging equipment and direct writing lithography equipment with micro nano direct writing lithography as the technical core. After years of deep cultivation, the company’s direct writing lithography technology has reached the leading level in China and ranked among the first echelon of the industry. The company has been deeply engaged in the field of PCB and pan semiconductor, and has served more than 100 customers, including Shennan Circuits Co.Ltd(002916) , Jianding technology and other industry leading enterprises.
② the company’s main products include PCB and pan semiconductor series. The company’s PCB series products mainly include laser and UV LED direct imaging equipment; Pan semiconductor series products include mask sector making equipment, IC manufacturing direct writing lithography equipment and FPD (flat panel display) direct writing lithography equipment. PCB business is the main revenue source of the company, and pan semiconductor is an emerging business under development. In 2021, the revenue of PCB and pan semiconductor business accounted for 84.32% and 11.30% respectively.
③ the performance grows rapidly and the profitability tends to be stable. From 2017 to 2021, the company’s operating revenue increased from 22 million yuan to 492 million yuan, with a CAGR of 117.05%; The net profit attributable to the parent company increased from -6.8467 million yuan to 106 million yuan. With the continuous deepening of the company’s PCB direct imaging equipment and the rapid development of Pan semiconductor lithography, the company’s high performance growth trend is expected to continue. From 2018 to 2021, the company’s profitability tends to be stable. With the continuous deepening of the company’s various businesses and the increase in the proportion of Pan semiconductor business revenue with higher gross profit margin, the company’s comprehensive gross profit margin is expected to rise steadily.
Industry level: there is a strong demand for direct writing lithography equipment, and domestic substitution is advancing rapidly.
① lithography process is an important process of PCB and pan semiconductor manufacturing. Lithography is a high-precision patterning technology, which is widely used in advanced manufacturing fields such as printed circuit board, semiconductor, display panel, mask sector and so on. In the field of PCB, lithography applications can be divided into direct imaging and traditional exposure processes, which are mainly used for the exposure of inner and outer circuit patterns and solder resist layers in PCB manufacturing; In the field of Pan semiconductor, lithography is applied to IC manufacturing, FPD Manufacturing, advanced packaging and mask sector making. According to whether mask sector is used or not, lithography process is mainly divided into direct writing lithography and mask lithography.
② the demand for PCB direct imaging equipment is strong, and the localization is carried out rapidly. The PCB industry continues to grow. According to prismark data, the output value of the global PCB industry is expected to increase from US $80.449 billion to US $101559 billion from 2021 to 2026, with a CAGR of 4.8%. Under the same output value, the demand of high-end PCB for exposure equipment increased in multiples. With the increase of the proportion of high-end products in the industry, the demand for exposure equipment increased rapidly. Direct imaging equipment is superior to traditional exposure equipment in accuracy, efficiency and yield, and has become the mainstream of the industry. At present, Israeli Orbotech and other overseas enterprises occupy a high market share in the PCB direct imaging equipment market. Chinese enterprises have made rapid progress in technology and have service advantages. Domestic substitution in the industry is carried out rapidly.
③ the demand for Pan semiconductor direct writing lithography is growing steadily, and domestic substitution is gradually promoted. Pan semiconductor direct writing lithography has the advantages of flexible production and easy modification of design. It has good application prospects in mask sector making, IC packaging and low-end pan semiconductor manufacturing, and the market demand is growing steadily. At present, pan semiconductor lithography equipment is dominated by foreign enterprises, and Chinese enterprises are in the stage of technology catch-up. With the independent and controllable promotion of Pan semiconductor industry and the continuous progress of Chinese enterprise technology, the localization rate of Pan semiconductor direct writing lithography industry is expected to gradually increase.
The company has strong technical strength and its market share is expected to continue to improve.
① the strength of the company’s R & D team is strong and the technical level continues to improve. The company’s R & D team is strong, and its core technicians have deep industrial background and technical accumulation in the field of micro nano direct writing. In the field of PCB, the company’s products have reached a high level in terms of minimum line width, alignment accuracy and production efficiency. In the field of Pan semiconductor, the company’s equipment has reached the leading level in China and is rapidly catching up with German Heidelberg and other overseas leading enterprises. With continuous research and development, the company has made rapid progress in technology, and its market share in the field of direct writing lithography is expected to continue to increase.
② continue to plough deeply in PCB field, develop pan semiconductor and open up growth space. In the field of PCB, the company has accumulated a large number of high-quality customers and achieved full coverage of the top 100 PCBs. The company has ranked among the first echelon of PCB direct writing lithography in China and will fully benefit from the development of PCB direct writing lithography market and the promotion of domestic substitution. In the field of Pan semiconductor, the company has made continuous progress in technology and accumulated many high-quality customers such as Visionox Technology Inc(002387) , CHENXIAN optoelectronics, fozhixin, silicon micro, Shengjie electronics, etc. the continuous development of the field of Pan semiconductor will open up the long-term growth space of the company.
Profit forecast: the company continues to cultivate direct writing lithography equipment, has a strong market position in the PCB field, is expected to usher in rapid development, and expand to the pan semiconductor field, which will open up the company’s long-term growth space. It is estimated that the operating revenue of the company from 2022 to 2024 will be 723 million yuan, 1006 million yuan and 1333 million yuan respectively, and the net profit attributable to the parent company will be 153 million yuan, 212 million yuan and 275 million yuan respectively, corresponding to 37.3, 26.8 and 20.7 times of PE respectively. For the first time, give a “overweight” rating.
Risk tip: the risk of fierce competition in the industry; Risks of industrial policy changes; The risk that the company’s technological progress is less than expected; Risk of deterioration of business environment caused by aggravation of covid-19 epidemic; Deviation risk of industry scale measurement.; There is a risk that the information used in the research report is not updated in time.
