The company is a leading supplier of Changjing equipment in China, and the multi-point layout has achieved rapid development. The company started with sapphire monocrystalline furnaces. Currently, it is mainly engaged in three types of products: semiconductor-grade monocrystalline silicon furnaces, SiC monocrystalline furnaces, and other long-crystal equipment represented by automated crystal pulling control systems. It has developed high-quality customers such as Shanghai Xinsheng, Jinruihong, Shengong Co., Ltd., San'an Optoelectronics, Dongyi Electronics, Crystal Technology and Hisilicon Semiconductors, and has established a leading market position in the field of semiconductor-grade crystal growth equipment. Mass sales of 12-inch semiconductor-grade monocrystalline silicon furnaces and SiC monocrystalline furnaces began in 2019, and overall performance has shown a rapid development trend in recent years.
Semiconductor-grade monocrystalline silicon furnace: The 12-inch semiconductor-grade monocrystalline silicon furnace developed by the company took the lead in localizing large-size silicon wafer semiconductor-grade monocrystalline silicon furnaces. The product can be applied to the leading domestic process and mass production schedule, and some technical indicators have reached the international mainstream advanced level. By the end of 2022, the market share of the company's 12-inch semiconductor-grade monocrystalline silicon furnaces was about 9.01%-15.63%. Downstream customers covered well-known silicon wafer manufacturers such as Shanghai Xinsheng, Jinruihong, Shengong Co., Ltd., and Hejing Technology. As customer production capacity expands and the share of domestic 12-inch semiconductor-grade silicon wafers rises, the company is expected to achieve a double increase in market share and performance.
SiC single crystal furnace: The company has all types of induction and resistance heating PVT SiC single crystal furnaces, LPE SiC single crystal furnaces, etc. The technical parameters of SiC single crystal furnaces can meet or be superior to mainstream foreign manufacturers. By the end of 2022, the company had a market share of 27.47%-29.01% among substrate manufacturers for SiC monocrystalline furnaces at home and abroad, leading the country. In order to meet the needs of downstream substrate manufacturers to expand production and localize special semiconductor equipment, the company is actively expanding production capacity through the IPO fundraising project. After the IPO fundraising project is fully completed, it will add a total production capacity of 1100 SiC monocrystalline furnaces per year, providing sufficient impetus for future business development.
Other crystal growth equipment: The company developed its own automated crystal pulling control system, which can be used in the manufacture of G10 to G12 solar cells. It can improve the degree of system automation and intelligent control, and save labor costs. Large orders have now been signed, and it is expected that it will continue to expand PV customers and open up future space.
Profit forecast: The company's net profit for 2023-2025 is expected to be 0.72/1.21/183 million yuan, or 109.83%/67.16%/50.66% year-on-year, covered for the first time, giving it an “increase in holdings” rating.
Risk warning: Product acceptance causes fluctuations in operating performance, fluctuations in gross margin, and downstream development falling short of expectations