The company is a leading domestic platform company for importing alternative innovative materials for various core “stuck necks” of semiconductor materials
The company started with general consumables for printing and copying, and began entering the semiconductor materials business and semiconductor display materials business in 2012 and 2013. As a leading domestic platform company that imports various core “stuck neck” alternative innovative materials in key racetrack fields, the company focuses on the field of innovative semiconductor materials (three segments: CMP process materials, semiconductor display materials, and advanced semiconductor packaging materials). At present, the company's products have entered many well-known downstream customers, and the share of semiconductor material revenue is increasing year by year.
Continuing to increase research and development of innovative semiconductor materials, the ARF/krf project is expected to establish the company as a leading domestic CMP polishing pad supplier in 24, deeply penetrating the domestic mainstream fab supply chain. We are also actively expanding our product line and expanding to fields such as CMP polishing liquid and cleaning liquid. At present, the company's CMP polishing pads, CMP polishing liquid, and cleaning liquid have all been sold. Furthermore, the company actively lays out other semiconductor material tracks, and is rapidly advancing in the advanced semiconductor packaging materials and ARF/KrF photoresist business, and the autonomy of upstream core raw materials for related products has basically been completed. A variety of temporary bonding adhesives, encapsulating photoresists, and ARF/KrF photoresists each entered different verification stages on the client side, and customer feedback was good. The company's Arf/KrF photoresist industrialization project with an annual output of 300 tons was launched in 23H2 and is expected to be completed in 24Q4, further promoting the company's growth.
The leading position of panel YPI and PSPI in China was established, and TFE-INK obtained purchase orders from domestic head display panel customers in 23Q4
The company is the first domestic company to break the international monopoly of the main materials in the OLED display field. It has become the number one supplier of YPI and PSPI products to some mainstream domestic panel customers, and has established a leading position as a domestic supplier of YPI and PSPI products. The company's panel packaging material TFE-INK obtained purchase orders from leading domestic downstream display panel customers in 23Q4. In addition, the company's semiconductor display material chips such as PFAS Free PSPI (PFAS Free PSPI), black pixel definition layer material (BPDL), and thin film packaging low dielectric material (Low Dk INK) are also being developed and sampled according to the plan. With the expansion of the company's semiconductor display materials categories, the company's related revenue is expected to grow further.
Upstream and downstream products of general printing and copying consumables operate collaboratively to maintain steady operation. The company takes the operation of the entire industry chain as its development idea. The products cover color polymeric toner, carriers, general consumables chips, development rollers, toner cartridges and cartridges, opening up the upstream and downstream of the consumables industry chain, thus supporting the company's dominant position in the field of general consumables for printing and copying. Through continued deepening cooperation with leading e-commerce companies, the company's general consumables business for printing and copying is expected to pick up as the market recovers.
Investment advice
We expect the company's net profit to be 239/4.29/575 million yuan from 2023 to 2025, respectively, and the corresponding PE is 77.60/43.16/32.21 times, maintaining the “buy” rating.
Risk warning
Downstream demand recovery fell short of expectations, market competition intensified, and new product expansion fell short of expectations.