Performance comments: in the first quarter of 2022, the company achieved operating income of 790 million yuan, an increase of 47.1% over the same period last year, and realized a net profit of-20 million yuan, with a small loss as a whole.
The burst of demand led to a substantial increase in revenue, and the highlighting of economies of scale led to a decline in the rate of expenses. First quarter of 2022:
1) on the revenue side, the company achieved 790 million yuan in revenue, an increase of 47.1% over the same period last year. 2) from the profit side, the company achieved a net profit of-20 million yuan in the first quarter, with a small loss in the first quarter. Among them, the company's gross profit margin was 21.2%, a sharp increase of 7.7ppm over the same period last year; the net profit margin was-2.1%, down 3.8pp from the same period last year. 3) from the expense point of view, the company's sales expense rate is 2.2%, down 1.0 ppm from the same period last year; the management expense rate is 7.9%, down 0.4 ppm from the same period last year; and the R & D expense rate is 4.9%, down 0.2pp from the same period last year.
Fund-raising projects to expand production capacity, business to actively expand the layout. The company's 300,000 mm wafer project has completed 300,000 wafer / month installation and construction, and the company has also launched a new round of 5 billion yuan refinancing plan in 2021, it is expected that 300 mm wafer production capacity will be expanded to 600000 wafers, in addition, subsidiary Xinao Technology and Okmetic 200mm wafer production capacity will exceed 400,000 wafer / month, SOI wafer production capacity will exceed 50,000 wafer / month. The company is also actively expanding its business layout: participating in the establishment of Guangzhou cutting-edge optical mask construction, realizing the coverage of the optical mask production line of 40-28 nm and above; participating in the capital increase and share expansion of Nanjing Jingsheng, cutting into the upstream semiconductor crystal pulling furnace equipment; and participating in the new round of financing of Xinhua Semiconductor, layout of polysilicon material industry.
300 mm silicon wafer technology continues to break through, and SOI fills the domestic technology gap. In the field of 300 mm large wafers, the company has made great breakthroughs in technology and products: 1) the company successfully passed the technology certification of 14 nm logic 300 mm wafers to achieve batch supply of 300 mm wafers for 14 nm process node applications; 2) successfully developed and verified 300 mm wafers for 19 nm DRAM applications; 3) successfully passed the certification of 300 mm polished wafers for 64-layer and 128-layer 3D NAND applications to achieve mass supply. In addition, the company is also carrying out research and development of 12-inch SOI, which will further fill the gap of this technology in China in the future.
Profit forecast and investment advice: the company is the leader in the domestic wafer industry, with a production capacity of 300000 mm wafers per month, and a new round of production expansion is being actively promoted. In addition, the company is expected to further fill the domestic technology gap in the SOI wafer field. We give the company 22 times PS in 2022, corresponding to a market capitalization of 74.96 billion yuan and a target price of 27.6 yuan, giving a "buy" rating for the first time.
Risk tips: capacity construction is not as expected, downstream demand weakens, raw material prices rise, fair value changes profit and loss fluctuation risk.