Revenue performance soared in 2022, maintaining the “buy” rating

On April 7, 2023, the company released its 2022 annual report. It achieved revenue of 3,050 million yuan in 2022, +46.32% year on year; net profit of 282 million yuan, +0.24% year on year; after deducting non-net profit of 285 million yuan, +76.03% year on year; gross profit margin 35.36%, year-on-year -0.83pcts. Calculated by the calculation of 2022/Q4, revenue was 1,124 million yuan in a single quarter, +40.23% year on year, +39.53% month on month; net profit of the mother was 120 million yuan, +27.96% year on year, +47.29% month on month; after deducting non-net profit of 100 million yuan, +22.27% year on year, +12.93% month on month. Considering the downward impact of the semiconductor cycle, we lowered the 2023-2024 performance forecast and added the 2025 performance forecast. The estimated net profit for 2023-2025 is 4.80 (-0.18) /6.18 (-0.34) /738 million yuan, and the corresponding EPS is 1.49 (-0.07) /1.92 (-0.12) /2.29 yuan. The current stock price corresponds to PE 29.3/22.8/19.1 times. We are optimistic about the company's continuous expansion in the semiconductor field and maintaining the “buy” rating.

Orders reached a new high, new business categories expanded, and the company's growth momentum was sufficient. The company added 4,219 billion yuan of new orders in 2022, +30.62% over the same period last year, including 1.8 billion yuan for semiconductor process equipment, +60.71% year on year. The company expects to add orders of 52-5.7 billion yuan in 2023, with a median value of 5.45 billion yuan, +29.18% over the same period last year, and orders for process equipment of 2-2.5 billion yuan, with a median value of 2.25 billion yuan, +25% year on year. In terms of business: In terms of wet cleaning equipment, the company's wet equipment can currently meet all 28nm wet process requirements, and orders have been placed for all process machines. By the end of 2022, the cumulative number of orders for high-end equipment in the core process segment was close to 20 units, orders for 14 nm and below were delivered, and the first monocrystalline trough cleaning equipment went offline in the second half of 2022. Currently, orders for nearly 60 units of velvet making equipment are being delivered one after another. In terms of furnace tube equipment, several 8-inch furnace tube equipment have been ordered, and the 12-inch tube equipment is about to enter the customer verification stage. In terms of glued imaging equipment, the 8-inch glued imaging equipment has been delivered to the customer for verification, and the 12-inch glued imaging equipment is in the technical evaluation stage. Currently, 80% of the system integration business serves the semiconductor field, and the company has become the largest supplier of high-purity process system support equipment in China. Currently, the support equipment business volume is close to 40% of the total system integration business. In terms of service:

The company has built the first domestic complete component cleaning anode production line in Hefei. By the end of 2022, it had been verified by nearly ten customers and placed orders. At the beginning of 2022, the company's first fully localized 12-inch wafer advanced process bulk gas supply plant in China was completed, achieving a breakthrough in the country's independent construction of bulk gas stations.

Risk warning: the risk of raw material prices rising, customer verification falling short of expectations, and downstream demand falling short of expectations.