Events:
The company released its third quarterly report for 2022: revenue in the third quarter of 2022 was 328 million yuan, up 19.38% over the same period last year; net profit was 4 million yuan, up 115.10% over the same period last year; and net profit was 41 million yuan, up 36.56% from the same period last year.
Comments:
Revenue is growing steadily and products are advancing smoothly. Revenue in the first three quarters of 2022 was 877 million yuan, an increase of 23.22 percent over the same period last year, and the net profit of deducting non-return was 94 million yuan, an increase of 38.52 percent over the same period last year. The company's chip manufacturing copper interconnection plating solution and additives, post-etching cleaning solution, silicon nitride etching solution has achieved large-scale sales, to achieve a strong domestic substitution. KrF photoresist through the certification of the increasing number of customers, mainstream wafer factories to achieve supply. CMP polishing liquid has been successfully sold in SiO2 system, and the client test performance of CeO2 system is good.
Business is in the shift period, gross profit margin hit bottom and hope to rebound. 2022Q3 gross profit margin is 33.12%, year-on-year-2.03pct. The expenditure rate during the period is 18.98%, compared with the same period last year-18.64pct, and the sales / management / R & D / financial expense rate is 3.50, 7.51, 8.85, 0.88% and 0.88%, respectively, compared with the same period last year. The main reason for the decrease in R & D expenditure is due to the expiration of the implementation of major national science and technology projects and the reduction of related R & D expenditure. With the gradual release of follow-up electroplating solution and additive products, we think the company's gross profit margin is expected to be improved.
Advanced process electroplating solution production and sales, semiconductor materials customer certification continues to break through. The company is committed to electroplating, cleaning, lithography, grinding four major process chemical materials are fully covered, specific product line, electroplating solution and additive products cover 90-14nm, of which 20-14nm products achieve mass production and sales; dry etching cleaning solution 14nm above full coverage; silicon nitride etching solution for memory chips to break the foreign technology monopoly; PCMP has entered the client KrF photoresist continues to pass customer verification, and batch shipments began in June 2022. ArF photoresist is in the client certification stage; CMP grinding fluid has successfully entered the client. In terms of production capacity, the production capacity of the Shanghai plant is 1.9 million tons per year, and the planned capacity of the first phase of the Hefei production base is 17,000 tons per year, which is expected to have mass production capacity in 2023, and the second phase of the Hefei project is under preparation.
Coverage for the first time, giving a "overweight" rating. The company continues to break through a variety of cutting-edge functional wet electronic chemicals and is expected to fully benefit from the domestic substitution process. From 2022 to 2024, the company is expected to achieve revenue of 13.29 million yuan and net profit of 1.48 billion yuan and 2.66 billion yuan, respectively.
Risk hint: the market demand and client verification are not as expected, and the profit forecast is not as expected.