Events:
According to the company's semi-annual report for 2022, 22H1 achieved operating income of 1.12 billion yuan, an increase of 21.67% over the same period last year; net profit of 81 million yuan, down 45.92% from the same period last year; non-net profit of 97 million yuan, an increase of 128.12% over the same period last year; and basic earnings per share of 0.26 yuan.
Profitability has increased significantly, and performance has gradually improved quarter-on-quarter.
In the first half of the year, the scale of the company's products gradually increased, the gross profit margin increased greatly compared with the same period last year, and the year-on-year decline in net profit rate was mainly due to the larger amount of 21H1 government subsidies and fair value adjustment, and the larger year-on-year increase in deducting non-net interest rate. 22H1 gross profit margin was 36.09%, an increase of 5.22pct over the same period last year; net profit margin was 7.76%, down 8.38pct from the same period last year. The cost side of the company continued to be stable in the first half of the year. The management expense rate / sales expense rate / financial expense rate / R & D expense rate of 22H1 Company was 9.74% 2.89% 3.84% 5.29% respectively, with year-on-year changes + 0.20/-1.23/-0.53/0pct. In a single quarter, the quarter-on-quarter operation gradually improved. 22Q2 achieved an operating income of 572 million yuan, a decrease of 16.99% over the same period last year, an increase of 4.47% over the same period last year, and a net profit of 59 million yuan, down 21.27% from the same period last year, an increase of 171.60%.
The semiconductor business plate is developing rapidly, and the IC field is progressing smoothly.
Semiconductor sector is the company's current business focus, but also the fastest growing business sector. In the first half of the year, new orders for process equipment totaled 806 million yuan, an increase of 87.44 percent over the same period last year, with revenue of 466 million yuan, an increase of 73.09 percent over the same period last year, and a gross profit margin of 35.11 percent. The users of the company's wet equipment have covered the domestic mainstream wafer manufacturing enterprises, and at the stage of each user, the verification and initial orders are gradually expanded to the repeated orders of the validated process machines. In the field of integrated circuits, the company's mature models are rapidly entering the user production line. In the face of the inevitable trend of users' development towards more advanced processes, the company has successively delivered four sets of equipment with processes below 14nm this year, and the research and development of other process machines with processes below 14nm are also being carried out in a further orderly manner.
Earnings forecast, valuation and rating
We estimate that the company's 2022-24 income will be 29.34max 38.62 / 4.705 billion yuan, the corresponding growth rate will be 40.75%, 31.66%, 21.82%, 3.69max, 4.95 / 629 million yuan, respectively, and the corresponding growth rate will be 30.81%, 34.34%, 26.96%, respectively, and the corresponding PE will be 31x/23x/18x. In view of the rapid expansion of the company's wet equipment and the steady growth of various business sectors, the "buy" rating is maintained.
Risk hint: supply chain delivery is not as expected, cleaning equipment base progress is not as expected, etc.