广州市发文鼓励光刻胶等产业国产化：广州市人民政府网站发布《广州开发区广州市黄埔区促进集成电路产业发展办法》，文件提到，鼓励发展大硅片、光掩膜、电子气体、光刻胶等高端半导体制造材料，支持清洗设备、光刻机、刻蚀设备、离子注入等设备、关键零部件及工具国产化替代。本次发文进一步支持了国产半导体，公司积极发展集成电路光刻胶产品，将有望受益于国产替代需求。Event: The company released its report for the third quarter of 2023. In the first three quarters of 2023, the company achieved revenue of 395 million yuan, a year-on-year decrease of 6.41%; net profit of 35.22 million yuan, a year-on-year increase of 374.80%.
The release of new products helped restore revenue growth: the company's business resumed positive growth in the third quarter, achieving operating income of 151 million yuan, an increase of 14.22% over the previous year. At the same time, gross margin also increased to 34.91%, a sharp increase of 9.83 percentage points over the same period last year. The driving force for the company's growth this quarter came from the initial release of new products, mainly photovoltaic products and paint products related to new energy vehicles. Judging from the downstream situation, Longji clarified that the impact of the BC battery route on the industry is expected to continue to drive the growth of the company's photovoltaic products such as insulating rubber, while new energy vehicles maintained strong growth in October, which is also expected to continue to drive the recovery of the company's paint business.
The benefits of the new Jiangxi Guangzhen base are expected to be reflected: the company issued an announcement stating that some sections of the new Jiangxi Guangzhen base have passed fire inspection and obtained real estate title certificates. The base plans to invest in projects with an annual output of 50,000 tons of electronic photosensitive materials and supporting materials. Its introduction will help further accelerate the integration and optimization of the company's industrial layout, improve the company's industrial chain, support the company's market expansion, new product development and further product structure optimization, reduce production and operation costs through centralized production, and help to be closer to serving the main downstream market customers of Guangdong, Jiangxi, Fujian and other companies.
Guangzhou issued a document encouraging the localization of photoresist and other industries: the Guangzhou Municipal People's Government website published the “Guangzhou Development Zone, Huangpu District, Guangzhou City, Measures to Promote the Development of the Integrated Circuit Industry”. The document mentioned that it encourages the development of high-end semiconductor manufacturing materials such as large silicon wafers, photomasks, electronic gas, and photoresist, and supports the localization and replacement of cleaning equipment, lithography machines, etching equipment, ion implantation and other equipment, key components and tools. This publication further supports domestic semiconductors. The company is actively developing integrated circuit photoresist products, which will hopefully benefit from domestic replacement demand.
Investment suggestions: The company's product sales growth has been initially verified, and it is estimated that the volume points will appear next year. Therefore, we expect the company's 2023-2025 operating income to be 5.24, 7.88, and 1,039 billion yuan respectively, net profit of 0.44, 1.07, and 179 million yuan respectively, and EPS of 0.23, 0.55, and 0.93 yuan respectively. Maintain a “buy” rating.
Risk warning: The macro environment falls short of expectations, product application falls short of expectations, and market competition intensifies.
