Event: on October 25, the company released its third quarterly report for 2022. In the first three quarters of 2022, the company achieved revenue of 1.338 billion yuan, an increase of 2.21% over the same period last year, a net profit of 109 million yuan, a decrease of 33.92% over the same period last year, and a deduction of 85.29 million yuan in non-net profit, a decrease of 9.48% over the same period last year.
Third-quarter results under pressure, photoresist waiting to be released. The company's revenue in the third quarter was 395 million yuan, which was lower than the same period last year, and short-term performance was under pressure. According to SEMI data, China's photoresist semiconductor market is expected to reach 10 billion yuan in 2025, with a compound growth rate of 35% from 2020 to 2025, significantly higher than that of the world. As a leading manufacturer of photoresist in China, Meishan project will expand the production of photoresist 1200 tons / year and photoresist intermediates 1000 tons / year. The company's I-line photoresist has been supplied to Semiconductor Manufacturing International Corporation and other enterprises, the KrF photoresist production and test line has been basically completed, and the equipment is being installed and debugged. We believe that with the acceleration of domestic substitution process, the photoresist products represented by KrF are expected to be sold successfully.
High-purity reagents break foreign monopolies, and production capacity construction is accelerating. The company's high-purity hydrogen peroxide, sulfuric acid and ammonia all reached the level of SEMI G5, breaking the foreign technology monopoly and becoming the main supplier of several head chip manufacturing enterprises. The company's first phase of 30,000 tons of semiconductor-grade high-purity sulfuric acid production line has been successfully opened to traffic, after trial production and commissioning, the quality ranks first in the world. The company has built the largest semiconductor grade high purity sulfuric acid base in China, and the products have been sold to Hefei Jinghe and other customers. at the same time, the second phase of the 60,000 ton project is under active construction and is expected to be completed in the first half of 2023.
Investment rating and valuation: from 2022 to 2024, it is estimated that the revenue will be 20.38,25.64 and 2.9 billion yuan respectively, and the net profit will be 1.65,2.20 and 300 million yuan respectively, maintaining the "recommended" rating.
Risk tips: the progress of photoresist research and development is not as expected; the prosperity and production expansion of high-purity reagents are not as expected; the downstream demand of lithium battery materials is not as expected.
