Domestic electroplating solution and cleaning solution leaders are actively expanding new business. For the first time, it is the only domestic enterprise that can meet the requirements of all technical nodes in the 90-14 nanometer copper process for electroplating and cleaning products. At the same time, it is actively entering the field of photoresist and polishing liquid, and is actively planning production capacity at the Shanghai plant and the new Hefei plant. Future performance is expected to grow rapidly. The company is expected to achieve net profit of 145 million yuan, 200 million yuan, 267 million yuan, EPS 0.46, 0.64, and 0.85 yuan in 2023-2025. The current stock price corresponds to PE 75.5, 54.8, and 40.9 times, giving it a “buy” rating for the first time.

The company's electroplating solution, additives and cleaning liquid technology is leading in domestic technology, entering the leading customer supply chain. The company's electroplating solution and additive products have covered 90-14nm technology nodes; the cleaning solution after dry etching has achieved full coverage of technology nodes above 14nm, and 20-14nm electroplating solutions and additives have been sold; the original innovative product silicon nitride etching solution for memory chips has broken foreign monopolies and has been jointly developed and verified with customers; the development of cleaning liquid products for copper polishing has been completed and entered the client. Copper interconnect plating solutions and additives for chip manufacturing, post-etching cleaning solutions, and silicon nitride etching liquid products have been supplied to domestic integrated circuit manufacturers on a large scale.

The company actively planned production capacity and built the second and third growth curves in the field of photoresists and polishing fluids. After completing the renovation and expansion of the Shanghai plant, production capacity reached 19,000 tons/year. The new Hefei plant has a product production capacity of 17,000 tons/year. It is expected to be tested by the end of 2023. The second phase of the project is currently under simultaneous construction. KrF photoresists independently developed by the company continue to pass certification to customers and have been supplied to mainstream domestic wafer manufacturers. ArF photoresists are currently in the client certification stage. In terms of polishing liquid, the mature SiO2 system polishing liquid has now successfully entered the client and sold. Some products of the CeO2 system have been tested online and have good performance, and the company's second and third growth curves are gradually taking shape.

Risk warning: Downstream prosperity is declining, new product development falls short of expectations, and new product promotion falls short of expectations.