Event: The company released its 2023 performance forecast. It is expected to achieve net profit of 4.385 billion yuan to 4.970 billion yuan in 2023, an increase of 50% to 70% over the previous year.
The collaboration of equipment+materials continues to be strengthened, and there are sufficient orders in hand. The company adheres to the two-wheel development strategy of “advanced materials, advanced equipment” and is expected to maintain rapid growth throughout the year. The company's profitability increased markedly. In the first three quarters, the company's gross margin was 42.01%, up 1.92 pct year on year; the net sales margin was 30.77%, up 2.66 pct year on year. By the end of the third quarter of 2023, the company had not completed contracts for crystal growth equipment and intelligent processing equipment totaling RMB 28.75 billion, of which RMB 3.03 billion had not been completed for semiconductor equipment. The company has sufficient orders, laying a solid foundation for the continued rapid growth of the company's performance.
The materials business is advancing at an accelerated pace. ① Diamond wire: The first phase of the company's mass production project was put into operation and mass sales were achieved. At the same time, it promoted the construction of the second phase of the production expansion project and accelerated the development process of tungsten wire. ② Silicon carbide: At present, 8-inch silicon carbide substrates have been sold in batches, and the core misalignment of mass-produced chips has reached the industry-leading level. In November 2023, the company launched the “annual production of 250,000 6-inch sheets and 50,000 8-inch silicon carbide substrates” project.
Multi-line layout of semiconductor equipment. At present, the company has basically achieved full coverage and mass sales of 8-12 inch large silicon wafer devices. At the same time, based on the extension of the industrial chain, the company has developed thinning equipment, epitaxial equipment, LPCVD equipment, ALD equipment, etc. for 8-12 inch wafers and package ends. In the field of silicon carbide, the company's 6-inch silicon carbide epitaxial equipment has achieved mass sales and rapid growth in order volume. It has successfully developed an 8-inch single-piece silicon carbide epitaxial growth device with international advanced standards. The thickness uniformity and doping uniformity of epitaxial films have reached industry-leading levels.
The superconducting magnetic field in monocrystalline furnaces has entered mass production. Based on the demand for higher downstream conversion efficiency, the company successfully developed a fifth-generation monocrystalline furnace based on N-type products, introduced semiconductor superconducting magnetic field technology into the photovoltaic field, completely opened the process window for low-oxygen N-type crystal growth, and improved battery efficiency from the material side. The first mass-produced superconducting magnet for photovoltaic direct pull monocrystalline furnaces has been successfully rolled off the line, marking that it has officially entered the mass production stage. According to the official account of Jingsheng Electro-Electronics on September 10, 2023, the company's subsidiary Huixiang made a new breakthrough in electro-hydraulic semiconductor-grade direct-drawn single-crystal superconducting magnetic field research and development — the 12-inch dry transverse superconducting magnetic field broke through 5000 Gs for the first time, marking that Huixiang Electrohydraulic became the first MCZ superconducting magnet company in China that can stably mass-produce 5000 Gs.
Profit forecast: We expect the company's net profit to be 48.52/62.26/7.295 billion yuan in 2023-2025, maintaining the “increase” rating.
Risk warning: Iterative photovoltaic technology falls short of expectations, new technology research and development falls short of expectations, and market competition increases risks.