Next Thursday (April 6), a company listed on the Science and Technology Innovation Board, “Jingsheng Co., Ltd.” will ask for a quote.

Jingsheng Co., Ltd. (688478): The company is a semiconductor-specific equipment supplier, mainly engaged in R&D, production and sales of crystal growth equipment. The company achieved revenue of 122 million yuan/195 million yuan/222 million yuan/222 million yuan respectively in 2020, YOY was 433.03%/59.34%/13.89% in that order, and the three-year compound annual revenue growth rate was 113.07%; achieved net profit of 30 million yuan/47 million yuan/35 million yuan. YOY was 367.70%/57.65%/-26.47% in that order, turning a loss into a profit in 2020. The company expects net profit for January-March 2023 to be about 1 million to 5 million yuan, an increase of about 122.16% to 210.78% over the same period last year.

Investment highlights: 1. The company is a leading domestic manufacturer of 12-inch semiconductor-grade monocrystalline silicon furnaces, and has reached good cooperation with major downstream suppliers such as Shanghai Silicon Industry and Liangwei. Demand for monocrystalline silicon crystal growth equipment is mainly driven by the downstream silicon wafer industry. Currently, 12-inch silicon is the mainstream product in the silicon wafer market. Domestic companies that have industrialized 12-inch silicon wafers include Shanghai Silicon Industry (Shanghai Xinsheng), TCL Zhonghuan (Zhonghuan Co., Ltd.), and Li Angwei (Jin Ruihong). The company is one of the earliest domestic enterprises to develop 12-inch semiconductor-grade monocrystalline silicon furnaces. Up to now, the localization rate in this field is 30%, and the company's market share has reached 9.01%-15.63%, making it one of the main domestic suppliers in this field.

The company has reached stable cooperation with Shanghai Silicon Industry, a leading manufacturer of silicon wafers in China, and Liangwei, a leading manufacturer, on 12-inch devices. The above two customers have also taken a stake in the company out of confidence in the company's development. Among them, since 2015, the company has cooperated closely with Shanghai Silicon Industry. In 2015, the company became the exclusive domestic supplier of Shanghai Xinsheng semiconductor-grade monocrystalline silicon furnace, a subsidiary of Shanghai Silicon Industry. In 2018, the company successfully achieved a nationalization breakthrough in the production of 12-inch semiconductor-grade monocrystalline silicon furnaces. 2. The company is one of the main domestic suppliers of silicon carbide monocrystalline furnaces and is the core supplier of San'an Optoelectronics. Major domestic silicon carbide crystal growth equipment manufacturers include the company and Beifang Huachuang. According to public information estimates from major domestic silicon carbide manufacturers, the company expects the market share to be about 27.47%-29.01%, second only to Beifang Huachuang. The company is the main supplier of San'an photoelectric silicon carbide monocrystalline furnaces, accounting for 80% of the procurement of San'an photoelectric silicon carbide monocrystalline furnaces. Currently, Sanan photoelectric silicon carbide diodes have achieved stable supply in various application segments. Industrial grade silicon carbide products have been sent to customers for verification. Vehicle grade products are being tested with many car companies. Its current production capacity of silicon carbide substrates is 720,000 pieces/year, and its 16 billion expansion projects can reach production capacity of 360,000 pieces/year after production. Furthermore, the company has completed the sale and verification of Tianyue Advanced's first set of products.

Comparison with listed companies in the same industry: The company's main products are semiconductor crystal growth equipment; based on product similarity, Jingsheng Electromechanical and Beifang Huachuang were selected as comparable listed companies. Looking at the comparable companies mentioned above, the average revenue size (TTM) of the industry is 11.477 billion yuan, the comparable PE-TTM (arithmetic average) is 48.03X, and the gross sales margin is 41.38%; in comparison, the company's revenue scale and gross sales margin are lower than the industry average.

Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.