\u3000\u3000 Crystal Clear Electronic Material Co.Ltd(300655) (300655)
Event: on the evening of January 17, the company released the performance forecast for 2021. In 2021, the company expects to realize a net profit attributable to the parent company of 170 ~ 220 million yuan, a year-on-year increase of + 120.92% ~ + 185.90%; It is estimated that the net profit attributable to the parent company after deducting non-profit is 100 ~ 130 million yuan, with a year-on-year increase of + 127.29% ~ + 194.14%. Among them, 2021q4 company is expected to realize a net profit attributable to the parent company of RMB 4.88 ~ 54.88 million, a year-on-year increase of – 68.11% ~ + 258.90%; It is expected to realize a net profit of 6.08 ~ 35.58 million yuan after deduction, with a year-on-year increase of – 54.52% ~ + 166.10%.
Comments:
The production and sales of semiconductors and new energy materials were booming, and the company’s performance increased significantly year-on-year. The company’s main products are semiconductor materials such as photoresist, ultra clean and high-purity reagent and new energy materials such as NMP and lithium battery adhesive. Benefiting from the rapid growth in the demand of China’s semiconductor material industry and the significant increase in the penetration rate of domestic semiconductor products in 2021, coupled with the significant increase in the demand for upstream raw materials brought about by the rapid development of the new energy vehicle industry, the company’s semiconductor materials and new energy material products are booming, thus driving the company’s performance to increase significantly. In addition, during the reporting period, jingzhirui (Suzhou) Microelectronics Technology Co., Ltd., a wholly-owned subsidiary of the company, successfully subscribed 15.713 million shares of Sensong International (2155.hk), which brought about a fair value change income of about 62 million yuan to the company and made a positive contribution to the substantial growth of the company’s performance.
A number of capacity plans have been continuously promoted, and the “semiconductor + new energy” dual track drive growth. At the beginning of December 2021, the company announced that it had successfully purchased a KrF lithography machine and said that the company’s KrF photoresist mass production line was under active construction. KrF lithography machine is one of the important components of the quality and safety inspection platform of the company’s KrF photoresist mass production line. On the one hand, it can speed up the verification and commissioning process of the company’s KrF photoresist products, on the other hand, it also lays a necessary equipment foundation for the construction of subsequent KrF photoresist mass production line. In addition, the company’s research and development of ARF photoresist products is also continuing. In terms of semiconductor material capacity, the company’s 30000 T / a capacity of G5 high-purity sulfuric acid phase I project is expected to start in early 2022. The simple fixed increase application for the construction of 60000t / a capacity of high-purity sulfuric acid phase II project was also approved by the CSRC on January 14. The project is expected to be completed and put into operation in 2023. At the same time, the company also has a production capacity of 1000 tons / year of photoresist intermediates and 1200 tons / year of photoresist in Meishan base, Sichuan. In terms of new energy materials, under the current situation of shortage of NMP supply, the company further invested 300 million yuan to expand 50000 T / a NMP production and recovery capacity on the basis of the original 25000 T / a NMP production and recovery capacity, which is conducive to consolidating the company’s industry position.
Profit forecast, valuation and rating: the company’s performance is in line with expectations. We maintain the company’s profit forecast for 2021-2023. It is expected that the net profit attributable to the parent company in 2021-2023 will be RMB 212 / 319 / 478 million respectively, and the converted EPS will be RMB 0.62/0.94/1.40/share respectively. We continue to be optimistic about the company’s rapid development in the fields of semiconductor and new energy, and maintain the company’s “buy” rating.
Risk tips: product price fluctuation risk, customer verification risk, new capacity construction risk.
