Incident description
On August 12, the company announced its 2022 semi-annual report. According to the announcement, the company achieved operating income of 549,4981 million yuan in the first half of 2022, an increase of 25.63% over the same period last year, and achieved net profit attributable to the parent company after deduction of 52.4729 million yuan, an increase of 17.61% over the same period last year.
The epidemic and the rise in raw materials did not hinder performance growth. Core products all made important breakthroughs in the first half of 2022. Facing adverse factors such as the outbreak of the domestic epidemic and the sharp rise in raw materials, the company actively explored and implemented countermeasures in R&D, procurement, production, sales, transportation, etc., and achieved the highest monthly chemical production and delivery results since the company was founded.
In terms of performance, the company achieved operating income of 549 million yuan in the first half of the year, an increase of 25.63% over the same period last year, and achieved net profit attributable to the parent company after deduction of 52.4729 million yuan, an increase of 17.61% over the same period last year.
By sector, copper interconnect electroplating solutions and additives, post-etching cleaning solutions, and silicon nitride etching liquid products for chip manufacturing have been supplied to domestic integrated circuit manufacturers on a large scale, achieving revenue of 162 million yuan, an increase of 88.37% over the previous year, and market share continues to expand; photoresist continues to make major breakthroughs. According to the Shenzhen Stock Exchange Interactive Investor Interactive Platform Company's disclosure on August 12, KrF photoresist has already been ordered by more than 3 customers; chemical-mechanical polishing fluid (CMP) technology has also successfully entered clients and sold a mature SiO2 product system. Some products of the CeO2 system have been tested online on the customer's production line and have good performance.
Equity incentive plans promote core personnel and enterprises to advance together
The company released the “Xinzhengtu (Phase I) Shareholding Plan” and the “New Growth (Phase I) Equity Incentive Plan” on May 18. The purpose is to fully mobilize the enthusiasm and creativity of the company's employees, further strengthen employees' sense of belonging and identity, and enhance the company's cohesion and combat effectiveness.
In terms of the New Growth (Phase I) equity incentive plan, the company plans to award 1.2 million restricted shares to 112 core technical/business personnel working in the company (including subsidiaries), accounting for about 0.38% of the company's total share capital of 313.3814.02 million shares on the day the draft incentive plan was announced (April 27).
Among them, 960 million restricted shares were granted for the first time, accounting for 80.00% of the total number of restricted shares to be granted under the incentive plan; 2400 restricted shares were reserved to be granted, accounting for 20.00% of the total number of restricted shares to be granted under the incentive plan.
Pay attention to independent research and development capabilities and continuously consolidate the competitiveness of enterprises
The company has been consistent over the years, insisting on independent innovation, fully exploiting its own potential, collaborating with the upstream and downstream of the industrial chain, unswerving in its work on key process materials that break through the country's “stuck neck”, and continues to make breakthroughs around the company's core technology products, and strives to build the company into a high-quality supplier of key process materials for integrated circuits in China and the world at large.
In terms of R&D investment, the company invested a total of 52 million yuan in R&D in the first half of 2022, accounting for 9% of the current revenue. It mainly focused on photoresist, silicon nitride and titanium nitride etching solution for integrated circuit manufacturing, cleaning solution after chemical mechanical grinding, and dry etching cleaning solution projects.
In terms of results, the company applied for 16 invention patents in the first half of 2022, including 10 invention patents and 6 utility model patents. By the end of June 2022, the company had applied for 460 patents, including 297 Chinese invention patents (99 have been authorized) and 17 international invention patents (7 have been authorized).
Industrial investment is expected to find new growth points for the company
In the first half of 2022, on the one hand, the company deepened its layout in the grinding fluid materials industry, transferred 100% of Shanghai Huiyan's shares, increased capital in Suzhou Bolinarun, accelerated the integration of industrial resource advantages, overcame the country's “stuck neck” project, and actively sought cooperation upstream. On the other hand, the company actively participated in industrial investment and invested in projects such as Suzhou Anxin Tongying Venture Capital Partnership (limited partnership), Jiangsu Xinchao Wanxin Venture Capital Partnership (limited partnership), Hongwei Venture Capital Fund Center (limited partnership) in Hengqin New Area of Zhuhai City, and Shanghai Chengquan Science and Technology Center (limited partnership). While helping the development of the industry, it has collaborated with the company's main business, continuously expanding and strengthening the company's industrial strength.
Investment advice
The company's net profit from 2022-2024 is expected to be 103, 258 and 386 million yuan respectively, with year-on-year growth rates of -0.8%, 149.6% and 49.8%. The corresponding PE was 110.00, 44.07, and 29.42 times, respectively. The first coverage gave a “buy” rating.
Risk warning
Downstream demand fell short of expectations, delivery fell short of expectations due to the pandemic, and R&D progress fell short of expectations.