CCL capacity upgrade completed, product gross margin improvement imminent
The company continues to promote customer guidance in the high-end product line. BT-like copper clad laminates for Mini-LED backlight and direct display have been shipped in bulk and are being verified with customers. High frequency products have also been shipped in bulk, and the research and development of high-speed copper clad laminates and customer introduction are also being carried out at the same time. By adjusting H1 (basic product line), H2 (growth product line) and H3 (seed product line), the company's product structure forms a multi-category and diversified product layout. The company's basic materials product line successfully laid out thick copper products, such as photovoltaic inverters and mobile energy, and established a large number of orders with end customers, laying a solid foundation for demand growth in future market segments. High-speed materials and thermal conductive FR-4 materials have passed the certification of well-known enterprises, and gradually meet the needs of the market, and the product portfolio is more diversified. In addition, the company also cooperates with industry leaders to promote the domestic substitution of raw materials in the field of MiniLED display applications, and has established a stable supply relationship.
CBF film products take the lead in the verification of plain ABF films.
The company carries out the research and development of CBF laminated insulating film related products through joint scientific research institutes. And Shenzhen Advanced Electronic Materials International Innovation Research Institute jointly funded the establishment of a joint venture company to jointly develop CBF laminated insulating film business. The CBF material developed by the company is directly related to the plain ABF film, taking into account the changes in the competition pattern after domestic substitution, compared with the current dominant situation, the profitability of suppliers may decline, but it is expected to maintain the high-profit characteristics of high-end semiconductor materials. At present, the company's products are progressing smoothly, and have entered the downstream IC carrier factory, packaging and testing plant and chip terminal verification process, and have achieved good results in stages.
Benefiting from the urgent demand for domestic replacement, the company's CBF products are expected to quickly infiltrate among domestic customers. This kind of insulating film can be used as key packaging materials in important application scenarios, such as FC-BGA high-density packaging substrate, chip rewiring dielectric layer, chip plastic packaging, chip bonding, chip bump bottom filling and so on. The company's core R & D team is strong, customer verification progress is leading, we expect the company to get a higher market share in the future.
Aluminum-plastic film products are expected to be shipped in 2024.
The company has been actively laying out aluminum-plastic film products since 2017, and has successfully applied it to the 3C field to achieve product sales. at the same time, the company is actively verifying the suitability of the products with the top power battery manufacturers and has obtained preliminary orders. With the smooth progress of the company's aluminum-plastic film expansion project with an annual production capacity of 36 million square meters, the company is expected to start expanding capacity in the field of power battery aluminum-plastic film in 2024, becoming one of the important growth forces of the company in the medium and long term.
We expect the company's net profit from 2023 to 2025 to be 53 million yuan, 134 million yuan and 278 million yuan respectively, corresponding to PE valuations of 87.34,34.59 and 16.68. considering the logic change of the company from CCL supplier to semiconductor key materials, as well as the growth rate in the next few years, we believe that the current time point has a certain investment value.
Risk hint
1. Downstream demand is lower than expected.
2. The progress of capacity release is not as expected.
3. The progress of CBF product verification is not as expected.
4. The intensification of market competition affects the profitability of the company.