Event: the company recently issued annual report and quarterly report forecast, revenue of 530 million yuan (yoy70.33%) in 2021; net profit of 118 million yuan (yoy98.78%); at the same time issued 2022Q1 performance forecast, expected profit of 1973.93-23.6871 million yuan (yoy150%-200%), comments are as follows:

Home-made semiconductor dicing machine began to sell in bulk, holding ADT provides performance flexibility. In 2021, the company's localization of semiconductor dicing machine 8230 began to sell in bulk; ADT achieved an income of 216 million yuan in 2021, and from May to December 2021, it was included in the listed company level of 157 million yuan, according to the previously disclosed performance pre-increase announcement, an increase of about 60 million yuan in net profit (of which 42 million yuan is caused by long-term equity investment remeasured at fair value at the merger level, for non-recurrent profits and losses). If you exclude this non-classics, the return net profit will increase by 29% compared with 2020, indicating that the main body of the company (local + ADT) is showing a good situation.

The new production capacity is about to reach production, and 2022 will be the year of domestic semiconductor scribing machine. The Zhengzhou airport base with a capacity planning of 500 units per year is about to reach production in mid-2022, and the old plant is also expanding capacity, which will alleviate the capacity bottleneck in 2021. The high-end cutting equipment 6110 (semi-automatic single-axis cutting dicing machine) for the third generation semiconductor Applied Materials Inc is also making steady progress.

In addition, the localization progress of the core components air spindle continues, which is expected to alleviate the capacity bottleneck and promote cost reduction and efficiency. At the same time, with its excellent characteristics in wafer surface CMP planarization equipment, ultra-thin wafer grinding equipment, automotive painting, optical glass grinding and other fields also have more applications, is expected to further open up the growth space.

Reiterate the investment logic: (1) the global market space of semiconductor wafer dicing machine is about 6 billion, with less than 5% share of domestic ADT, all are occupied by overseas manufacturers such as DISCO, and there is a wide space for domestic substitution; (2) overseas benchmarking: Japanese DISCO focuses on semiconductor cutting, grinding and grinding processes, with revenue of 11.5 billion, supporting the market capitalization of more than 70 billion yuan. (3) Optical Power has three overseas mergers and acquisitions and smooth integration, with both brand, technology and supply chain, and the local model is expected to expand.

Investment advice and rating: the company's net profit for 2022-2024 is expected to be 2.2cm, 32x, 22x and 17x respectively, corresponding to 32x, 22x and 17x, respectively, and continue to be rated as "buy".

Risk hint: new product delivery is not as expected; industry demand is not as expected