\u3000\u3000 Kingsemi Co.Ltd(688037) (688037)
According to the 2021 performance forecast released by the company, it is estimated that the annual operating revenue in 2021 will reach 810-840 million yuan, with a year-on-year increase of 146.28% – 155.40%; It is estimated that the net profit attributable to the parent company in 2021 will be 73.5-80 million yuan, with a year-on-year increase of 50.53% – 63.84%; It is estimated that the annual net profit deducted from non parent company in 2021 will be RMB 60-67.5 million, with a year-on-year increase of 366.02% – 424.27%.
Key points supporting rating
Q4’s revenue and profit are outstanding. According to the data released by the company, taking the median value of the prediction range for comparison, it is expected to achieve an operating revenue of about 278 million yuan in 2021q4, with a year-on-year increase of 137.61% and a month on month increase of 41.84%; 2021q4 is expected to realize a net profit attributable to the parent company of about 24 million yuan, with a year-on-year increase of 471.22% and a month on month increase of 31.30% (turning losses into profits compared with Q3); At the same time, 2021q4 is expected to realize a net profit of about 18 million yuan, turning losses into profits year-on-year, an increase of 9.44% month on month.
The company’s profitability has also improved significantly. In 2021, the deduction of non net interest rate is 7% – 8%, while in 2020, the deduction of non net interest rate is only 4%. Referring to the company’s third quarter financial report, the increase of net interest rate is mainly due to the decrease of expense rate during the period, and the scale effect is obvious.
The amount of front gluing developer and cleaning equipment. The company’s gluing and developing equipment is the leader in the field of compound semiconductor and advanced packaging in the back channel in China. As a mainstream model, the machine has entered many well-known large factories in China, such as TSMC, Jcet Group Co.Ltd(600584) , Tianshui Huatian Technology Co.Ltd(002185) . On the basis of the continuous advantage of the back channel, the company has increased research and development efforts and actively explored the field of front wafer processing. The gluing and developing equipment in the lithography process has been successively won the reputation of Shanghai Huali SMIC Shaoxing, Shanghai Jita, Fujian Jinhua and other customer orders, and the company’s single-chip wet equipment covers many first-class wafer factories in China.
There are enough orders. At the end of the third quarter of 2021, the inventory increased by 111% compared with the end of 2020, and the contract liabilities increased by 118% in the first three quarters. According to the data of China International Tendering network, in January 2022, the company won the bid for two yellow light gluing and developing machines, which is a new milestone for the company’s gluing and developing machines on the 12 inch wafer production line.
Profit forecast
In view of the smooth development of the company in the previous field, sufficient power of follow-up revenue, bright Q4 performance and enhanced profitability, the company raised the net profit from 2021 to 2023 to 80 / 136 / 175 million yuan and maintained the buy rating.
Main risks of rating
Valuation fluctuation risk of semiconductor sector; The downstream demand of parts is affected by non market factors; The risk of R & D progress falling short of expectations or being exceeded.
