Key points of investment
Five action plans for “Double Improvement of Quality Return” were issued to help the company develop the “equipment+materials” business with high quality 1) Focus on the “advanced materials, advanced equipment” strategy to improve the quality of development. The company will become a global manufacturer and service provider of semiconductor equipment and new materials with leading technology and scale.
2) Strengthen R&D technological innovation to lead high-quality development through continuous innovation. Photovoltaic silicon wafer equipment: N-type fifth-generation monocrystalline furnace launched; photovoltaic battery equipment: successfully developed tubular PECVD, LPCVD, diffusion, annealing, single-chamber multi-boat ALD and dry cleaning equipment; silicon carbide equipment: successfully developed 8-inch monolithic silicon carbide epitaxial growth equipment with international advanced standards; silicon carbide substrates: the company's 6 inch and 8 inch mass-produced silicon carbide chip core misalignment can stably achieve TSD <100 units/cm2 and BPD <400 units/cm2, leading the industry.
3) Consolidate governance and improve the level of standardized operation. Consolidate the foundation of corporate governance, standardize the rights and obligations of companies and shareholders, strengthen investor relations management, and improve the corporate governance structure and internal control system.
4) Continuously improve the quality of information disclosure and strengthen communication with investors. Deepen investors' understanding of the company's production and operation, etc., convey the company's investment value, enhance investors' sense of identity, and establish market confidence.
5) Establish the concept of return to investors and effectively return investors. Since 2022, the company has implemented two share repurchases, using a total of 199 million yuan of its own capital, and repurchased 3.93 million shares. Since the year of listing, the company's dividend amount has remained at least 20% of the consolidated net profit, and the cumulative dividend amount has exceeded 1.8 billion yuan.
Pan-semiconductor “equipment+materials” leader, platform-type layout space continues to open 1) Photovoltaic equipment: The company is a leader in photovoltaic monocrystalline furnaces, expanding into the fields of photovoltaic superconducting magnetic field monocrystalline furnaces, battery+module equipment, quartz crucibles (leading the leader), and diamond wire, opening up a second growth curve for the photovoltaic business.
2) Semiconductor equipment: Large silicon wafer equipment - The company has achieved full coverage and sales in 8-12 inch crystal growth, slicing, grinding, thinning, polishing, CVD, etc., and has developed 12-inch epitaxial, LPCVD, and ALD devices based on advanced manufacturing processes. Power semiconductor equipment - The company sells single-chip and double-chip 6-inch silicon carbide epitaxial equipment in batches, and successfully developed an 8-inch single-chip silicon carbide epitaxial device with international advanced standards.
3) Silicon carbide: Technical side: The company has achieved mass production of 8-inch silicon carbide substrates. Client: The company has formed a procurement intention with customer A (company announcement), and will prioritize supplying them with a total of at least 230,000 silicon carbide substrates from 2022 to 2025. Production capacity side: In Shangyu, Zhejiang, the company has started a project of 250,000 6-inch+50,000 8-inch silicon carbide substrates. Equipment side: The company released 6-inch double-chip silicon carbide epitaxial equipment and 8-inch silicon carbide epitaxial growth equipment, leading the industry to accelerate into the 8-inch era.
Investment advice: Optimistic about the company's future performance in the fields of photovoltaics, semiconductors, silicon carbide, and sapphire. The company's net profit for 2023-2025 is estimated to be 47.2/57.8/6.95 billion yuan, an increase of 62%/22%/20% over the previous year, corresponding to PE 10/8/6 times. Maintain a “buy” rating.
Risk warning: The progress of semiconductor equipment research and development has fallen short of expectations; the expansion of downstream photovoltaic production falls short of expectations.