Event: Shanghai Xinyang released the China News, during the reporting period, the main income reached 300 million yuan, an increase of 8.26% over the same period last year. The net profit was 26 million yuan, down 90.64% from the same period last year. The non-return net profit was 25 million yuan, an increase of 80.52% over the same period last year. At the same time, the company plans to raise 1.5 billion yuan for the construction of photoresist and Hefei high purity chemicals base.
Main points of investment
Q2 quarter deduction non-home net profit improved significantly compared with the same period last year and month-on-month. The mid-report performance dropped sharply in 2019, mainly due to a non-recurrent profit and loss of 305 million yuan in mid-2019. In the Q2 quarter of 2020, the net profit deducted from non-return was 16 million yuan, an increase of 100.43% over the same period last year and 66.08% month-on-month growth. This is mainly due to breakthroughs in the company's electroplating solution, cleaning solution and other high-purity chemicals business in Semiconductor Manufacturing International Corporation and other users.
The strategic intention is gradually clear, and the products are recognized by the industry. At the beginning of listing, the company focused on copper interconnection, electroplating solution, cleaning solution, photoresist and some grinding fluids and other areas. Related business belongs to the business direction with the highest technical barriers in the field of semiconductor materials, most of which are less competitive in China, or no enterprises have made technological breakthroughs. Today, the company's electroplating solution has been volume, cleaning solution began to start, more other products are in the critical point of breakthrough. The company's efforts have also been recognized by giants such as Semiconductor Manufacturing International Corporation, and the quota of strategic placement is larger.
Photoresist business is worth looking forward to. The company's current business in the field of photoresist covers I-line, KrF thick film, ArF dry process and ArF wet photoresist. Judging from the company's team configuration, equipment in place, and R & D progress, we think that the company may be one of the first domestic enterprises to make breakthroughs in the field of KrF and ArF. The company also listed KrF thick film photoresist and ArF dry photoresist as fund-raising projects, demonstrating the company's confidence. At the same time, in order to better promote the research and development of ArF wet photoresist and control the risk, the company has adjusted the core ownership structure, and the risk in the R & D process is mainly borne by the major shareholders. once a breakthrough is achieved, the listed company will re-control the core.
Cut into the field of polishing fluid. The company signed a "strategic cooperation agreement" with Shanghai Huiyan, a major shareholder holding company, to cooperate in the development of polishing fluid business, which belongs to large semiconductor materials. Anji Microelectronics has a certain leading advantage in this field. The business of copper process cleaning liquid and Anji Microelectronics previously developed by the company belongs to misplaced competition, and polishing fluid business is also expected to be misplaced competition.
Profit forecast and investment rating: we expect the company's return net profit from 2020 to 2022 to be 82 million yuan, 125 million yuan and 180 million yuan respectively, and the EPS is 0.28,0.43 and 0.62 yuan respectively. The current share price corresponds to 216X, 142x and 99x respectively, maintaining the "overweight" rating.
Risk hint: the progress of new product research and development is lower than expected; the progress of customer certification is lower than expected.