鼎龙股份(300054):半导体材料增幅明显 后续成长动力充足

Dinglong Co., Ltd. (300054): The increase in semiconductor materials is obvious, and there is sufficient momentum for subsequent growth

長江證券 ·  04/14  · Researches

Description of the event

On April 10, 2023, Dinglong Co., Ltd. released its 2022 annual report. In 2022, the company achieved revenue of 2,721 million yuan, an increase of 15.52% over the previous year; the net profit returned to the mother was 390 million yuan, an increase of 82.66% over the previous year. 2022Q4 achieved revenue of 766 million yuan, an increase of 8.72% over the previous year; the net profit returned to the mother was 95 million yuan, an increase of 51.37% over the previous year.

Incident comments

Various businesses are developing well, and profitability has improved markedly. In 2022, the company's printing and copying general consumables business achieved revenue of 2,142 billion yuan, an increase of 6.43% over the previous year, and the gross margin increased 3.47 pct to 32.62% year on year, mainly due to the introduction of new products and the decline in raw material costs; the semiconductor materials business achieved revenue of 522 million yuan, an increase of 69.93% over the previous year, and gross margin increased 2.25pct to 65.54% year on year. The company's sales revenue of various materials at different stages in various segments continued to develop rapidly. The sales revenue of CMP polishing pad products increased dramatically year on year, and CMP polishing liquid, cleaning solution products, and flexible display materials YPI and PSPI products began to be released. Taken together, the company's gross margin level increased 4.6 pct to 38.1% year on year in 2022, and the net profit margin level of the parent company increased 5.3 pct to 14.3% year on year. At the same time, the company further increased its R&D investment to reach 318 million yuan in 2022, an increase of 12.26% over the previous year.

Grasp the trend of domestic substitution of semiconductor materials and build a platform-based company. In terms of semiconductor CMP process process materials, the company is the only domestic supplier of CMP polishing pads that fully masters the core R&D and manufacturing technology of the entire polishing pad process. Polishing liquid and polishing pad products continued to be abundant and entered client sales. In 2022, polishing pad revenue increased 51.32% year-on-year to 457 million yuan, and the leading position of domestic polishing pads was established; CMP polishing liquid and cleaning solution products gradually transitioned to large-scale production, achieving revenue of 17.89 million yuan in 2022, and various products are in the critical verification stage. With a rich range of products and the continuous release of production capacity, the company's CMP business is expected to maintain a high growth trend. In terms of semiconductor display materials, the company's flexible display base material YPI product sales have continued to grow and have become the first supplier for some mainstream panel customers. PSPI, as the only domestic supplier in China, began shipping in the third quarter of 2022. In 2022, YPI and PSPI product revenue increased 439% year-on-year to 4728 million yuan: in terms of semiconductor packaging materials, the pilot process route for temporary bonding adhesive and packaging photoresist (PSPI) has been completed. Among them, temporary bonding adhesive products have completed the round delivery of a mainstream domestic product, and the client is close to verifying the final sample from a mainstream domestic product. The photoresist has now been sent samples from a major packaging factory to a client, and the verification work is progressing steadily. The semiconductor materials business is expected to continue to grow in 2023 as the pace of verification of new customers accelerates.

The company has advantages in various aspects such as technology and production capacity. Under the general trend of localization of semiconductor materials, there is broad room for future growth. The company is a domestic semiconductor material leader, released CMP polishing materials, made breakthroughs in YPI and PSPI industrialization, and built a grand blueprint for seven major technology platforms. With the rapid development, certification, mass production and shipment of the company's optoelectronic semiconductor material products, it will maintain a high growth rate in the future. It is estimated that in 2022-2024, the company's EPS will be 0.48 yuan, 0.77 yuan, and 1.03 yuan. The price-earnings ratio levels corresponding to the current stock price are 54.3x, 33.8x, and 25.2x, respectively, maintaining the “buy” rating.

Risk warning

1. Risk of exchange rate fluctuations;

2. The progress of R&D and product verification fell short of expectations.

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