Main points of investment
The company is the domestic leading enterprise of ultra-high purity metal targets for integrated circuits, with a continuous increase in target production capacity in the future, from 20,000 in 2021 to 73000 in 2025, and the structure continues to be optimized. the proportion of copper, cobalt, nickel and other targets with high technical barriers and strong profitability improperly enhances the company's coverage of the upper and middle links of the target industry chain to break through metal purification technology. The core business is ultra-high purity metal targets for integrated circuits, which is in a leading position in China, has realized the vertical integration of copper series targets and cobalt targets, and has maintained a stable batch supply in the downstream of important chips. By the end of 2021, the company has a target production capacity of 20,000 pieces. In the future, with the production expansion project of 100 million gold targets, the company will achieve target production capacity of 73000 pieces per year by the end of 2025, with a CAGR of 33.28%.
In addition to the target materials, the company is mainly located in the four major sectors of "electromagnetic optical medicine" to speed up the structural transformation to high-end superior products.
Magnetic plate: the company focuses on developing the industry of rare earth metals, alloys and targets for magnetic materials, and has entered the high-end rare earth magnetic materials market and sintered NdFeB industry; optical plate: the company's sales of infrared germanium single crystal products exceed 10 tons, with a global market share of about 25%. At the same time, the layout of new areas of semiconductor optoelectronic materials Medical plate: digital orthodontic products have successfully opened up the market, and high-performance Ni-Ti biomedical materials have been sold in batches, and have successfully become one of the domestic first-line fixed orthodontic device manufacturers and service providers; the company's products continue to transform to high-end and superior products. The proportion of copper series targets and cobalt targets is gradually increasing, and it will focus on the continuous promotion of 12-inch high-end target products in the future; at the same time, it will actively extend the industrial chain in the field of magnetic materials and high-end rare earth magnetic materials, so as to speed up the construction of the whole industry layout.
Profit forecast and valuation
In 2022-2024, we expect the company to achieve total operating income of 16.53 billion yuan, net profit of 4.08 million, EPS of 0.48, 0.69, and a "buy" rating for the first time covering for the first time in 34-24-17.
Risk hint
The prosperity of the semiconductor industry is not as good as expected, the price of metals fluctuates sharply, and the production capacity of targets is not as expected.
