Main points of investment
Expert management and R & D drive are the characteristics of Xinyang: the company's founders Wang Fuxiang and Sun Jiangyan are senior experts in the electronic materials industry, and the company's managing director, Fang Shunong, is a postdoctoral student in Applied Chemistry, Department of Engineering, University of Tokyo. Wang Buan, executive deputy general manager and chief engineer of the company, is a doctor of microelectronics manufacturing in Hong Kong University of Science and Technology. At the end of the year, the corporate governance structure gradually changed from the original founder team to the operation and management mode dominated by the professional manager team.
The development of closed test chemicals is stable, and the quantity of wafer chemicals starts rapidly. At present, electronic chemicals mainly focus on electronic cleaning and electronic plating, and the business demand of closed test electronic cleaning and electronic plating chemicals is stable. With the progress of wafer process customer certification, wafer cleaning and electroplating chemicals are growing rapidly, which is an important profit growth point in the future. In addition, the company also has a reserve of advanced packaging electronic chemicals, which is currently small in volume, but has a large market capacity, which is worthy of attention.
There is a certain expectation difference in the company's photoresist business. According to downstream applications, photoresist can be divided into PCB, LCD and integrated circuit manufacturing, packaging photoresist, etc., from the market volume, LCD photoresist is the most suitable entry point, but from the market demand, integrated circuit manufacturing photoresist is the most urgent. Bo Yan Electronics, which is a shareholder of the company, is mainly engaged in LCD photoresist, which is in the rapid start-up stage. At the same time, the successful experience of Bo Yan Electronics provides a reference for Xinyang, the company and Bo Yan Electronics also have a certain business coordination, the company is currently promoting the research and development of ArF dry, KrF thick film photoresist, we believe that the company is the most likely to take the lead in making a breakthrough.
The company's electronic equipment business is worth looking forward to. The chemical equipment for the surface treatment of lead pins is the company's traditional equipment business. in March 16, the company established Xinyang Silicon dense, which is engaged in the development of wafer-level wet process electroplating equipment, cleaning / degumming machine and acid supply system. The market capacity of related business is large, and business progress should be paid more attention to.
Profit forecast and investment rating: we expect revenue of 642 million yuan, 788 million yuan and 919 million yuan respectively, net profit of 222 million yuan, 91 million yuan and 101 million yuan, EPS of 0.76 yuan, 0.31 yuan and 0.35 yuan respectively, and current share price corresponding to PE of 70X, 172x and 155x respectively. Taking into account the process of localization of semiconductor supporting materials and the progress of the company's photoresist chemicals, it was covered for the first time and was given a "hold-up" rating.
Risk hint: the market capacity of photoresist for integrated circuit manufacturing is limited, and the market development of crystal chemical business is slower than expected.
