Event: the company released its annual report on April 28, 2021. During the reporting period, the company realized operating income of 273 million yuan, an increase of 22.07% over the same period last year, and a net profit of 87 million yuan belonging to shareholders of listed companies, an increase of 29.64% over the same period last year.
Comments:
Downstream demand continues to release, semiconductor wafer market remains high. According to statistics, global semiconductor wafer sales increased from US $7.209 billion to US $11.15 billion from 2016 to 2019, with an average annual compound growth rate of about 16%. With the rapid development of new industries such as 5G, new energy vehicles and the Internet of things, the functions of consumer electronic products such as smartphones, tablet computers and automotive electronics are increasingly rich and their applications continue to expand. It is expected that the demand of the semiconductor industry will continue to grow in the next few years, and the strong demand in the downstream market will lead to the continuous expansion of the sales scale of the semiconductor wafer market.
Silicon material industry chain is complete to meet the needs of market development. There are more domestic 3-6 inch silicon production enterprises than large size silicon wafer enterprises, and some of them are only wafer processors, so they need to purchase single crystal silicon rods for wafer processing and production. In the future, with the development trend of semiconductor discrete devices towards miniaturization, power and integration, it puts forward higher requirements for the technical and functional requirements of silicon wafers. The company also has the technology and production capacity of silicon rods and silicon wafers. And to be able to supply silicon materials on a large scale, the industry chain has significant advantages in integration, wide customer coverage and close cooperation, and the market share is expected to increase in the future.
Production capacity continues to be released and performance growth is eye-catching. During the reporting period, the company achieved operating income of 272 million yuan, an increase of 22.07% over the same period last year; the net profit belonging to shareholders of listed companies was 87 million yuan, an increase of 29.64% over the same period last year, mainly because the management of the company seized the opportunity of expanding production and procurement demand in downstream wafer factories to ensure resumption of production and continuous release of production capacity while doing a good job in epidemic prevention and control. At the same time, the sales order volume was sufficient, and the sales volume increased steadily.
Expansion + R & D investment will be available in the future. The company actively expands the production capacity of existing products, on the basis of meeting the relationship between supply and demand, increases the R & D investment in semiconductor monocrystalline silicon polishing wafers, actively distributes the large-size silicon wafer market, and continues to enhance the company's innovation capability and core competitiveness. reduce import dependence in related product application fields, seize the opportunity of semiconductor localization acceleration, and accelerate the company's development in the field of semiconductor silicon materials.
Profit forecast: the company's revenue from 2021 to 2023 is expected to be RMB 490 million, and its net profit is RMB 1.7pm, which is covered for the first time and given a "recommended" rating.
Risk hints: (1) the risk of market expansion; (2) the risk of periodic fluctuations in the industry; (3) the unrealizability of profit forecasts and the inapplicability of valuation methods.