The company announced that it will invest 328 million yuan to expand the target production project, with a designed target production capacity of 73,000 pieces per year, corresponding to a compound production growth rate of 91% in the next two years. The company has entered a period of rapid growth of "1 to 10", and the performance growth rate is expected to exceed the output growth rate under the advantage of scale. Give the company 40xPE in 2022, maintain the target price of 21.60 yuan for the coming year, and maintain the company's "buy" rating.
Event: on September 13, 2021, the company announced that it would invest 328 million yuan in the target expansion project and design the target production capacity of 73,000 yuan per year, of which the construction period of the new project in Dezhou base is 12 months, and the construction period of Changping base transformation project is 17 months. the source of funds is its own funds and raising funds.
Capacity growth in the next two years is as high as 91%, and the company has entered a period of rapid growth of "1 to 10". As of 2021H1, the pre-construction of high-purity metal industrialization construction project has reached production, the company has a target production capacity of 20,000 pieces / year. With the launch of this production expansion project, we expect the company to achieve a target production capacity of 51,73,000 in 2023, corresponding to a compound growth rate of 91% in the next two years. Under the background of sufficient orders, the company will enter "1 to 10".
The rapid growth cycle. And the investment intensity of this round of expansion is 0.62 million yuan / block, which is significantly lower than the previous round of expansion investment intensity of 10 million yuan / block, which proves that the expansion after the completion of the initial industrialization of the company has a stronger scale advantage.
The product structure of the target business continues to upgrade, and the performance growth rate is expected to exceed the output growth rate under the advantage of scale. The company passed the verification of a number of 12-inch target products in 2021, and entered the major advanced semiconductor factories in 2020 to achieve batch and stable supply. The company 2021H1 combed more than 30 key large-size targets to carry out key research and development, and steadily realized the transformation to large-size products. The target industry is expected to benefit from the domestic target development opportunities brought about by the transfer of the semiconductor industry chain to China in the future, with a growth rate of more than 10%. The company's target performance is expected to exceed the growth rate of target sales.
The integration of mergers and acquisitions, the transformation of scientific research achievements and market development have shown their effects, and the performance has entered the harvest period. In the first half of 2021, 1) Magnetic plate: sales of rare earth magnetic materials increased significantly compared with the same period last year, and the output of heavy metals and targets in metals such as terbium and dysprosium increased by 1.5 times compared with the same period last year; in addition, the company increased the proportion of high value-added products by adjusting the industrial chain. 2) Optical plate: the company continues to promote the extension of the industrial chain and greatly increases the production scale, while benefiting from the localization substitution policy, infrared plate product revenue and gross profit increase close to 30% compared with the same period last year. 3) Medical plate:
In the first half of the year, the revenue of self-produced orthodontic products increased by 72% compared with the same period last year; at the same time, the company actively laid out the field of digital oral devices, the website platform of the digital center was constantly upgraded and updated, and the number of institutional users increased by about 30% over the same period last year.
Risk factors: the prosperity of the semiconductor industry is not as good as expected, and the release of new production capacity of the company's targets is not as expected.
Investment suggestion: we maintain the company's 2021-2023 homing net profit forecast of 28980,616 million yuan, corresponding to the 2021-2023 EPS forecast of 0.34 pounds 0.55 pounds 0.73 yuan per share. According to the average valuation of comparable companies in the industry, the company will be given 40xPE in 2022, maintain the target price of 21.60 yuan for the coming year, and maintain the company's "buy" rating.
