The “Double Improvement of Quality and Return” action plan highlights long-term development determination and maintains the announcement of the “Buy” rating company to issue the “Action Plan to Promote the Double Improvement of Quality and Return”. The announcement states that in the future, the company will:
(1) Focus on the development of the main business and comprehensively build an international level electronic materials enterprise consortium; (2) adhere to independent research and development and master core technology; (3) focus on shareholder returns and share enterprise development results; (4) consolidate corporate governance to achieve high-quality development; (5) focus on the quality of information disclosure to effectively convey corporate value. At the performance level, considering that short-term semiconductors are at the bottom of the cycle and the increase in the company's new product development, etc., we have lowered the company's performance. We expect net profit to be 0.17/1.02/115 million yuan (previous value was 0.40/1.67/195 million yuan) in 2023-2025, corresponding EPS was 0.02/0.10/0.12 yuan (previous value was 0.04/0.17/0.20 yuan), and PE corresponding to the current stock price is 464.3/78.0/69.0 times. We continue to be optimistic about the company's high-purity chemicals and photoresists Long-term growth space, maintaining a “buy” rating.
Semiconductor materials and new energy materials are developing simultaneously, and the core competitiveness continues to improve. The company has formed four major business lines of high-purity chemicals, semiconductor photoresists, lithium battery materials, industrial chemicals and energy, and will continue to improve its core competitiveness in the future. In terms of high-purity chemicals, the company is one of the few companies in the world that also master the three technologies of semiconductor-grade high-purity hydrogen peroxide, high-purity sulfuric acid, and high-purity ammonia. In terms of photoresists, the company has hundreds of models of products such as UV broad-spectrum series, g-line series, i-line series, and KrF series. Among them, some varieties of KrF high-end photoresists have been mass-produced; R&D and innovation of ArF high-end photoresist products continues to advance.
In terms of lithium battery materials, the company's main products include lithium battery binders such as NMP and cmCli. The company's NMP products are the only products in China that have passed the certification of South Korea's Samsung Group SDI, ranking first in the overall ranking of Samsung suppliers for five consecutive years; cmCli adhesives have been successfully mass-produced, achieving China's zero breakthrough in this field, breaking the pattern where the high-end market is monopolized by foreign companies. In terms of industrial chemicals and energy, as the company continues to improve technology, part of the production capacity of industrial chemicals will gradually be converted to high-purity chemical production capacity.
Focus on shareholder returns and share the results of enterprise development
The company attaches great importance to investor returns. Since its listing, the company has accumulated cash dividends (including cash repurchases) of more than 190 million yuan. In addition to cash dividends, the company also shares the company's development results with investors through capital reserves to increase share capital.
Risk warning: downstream demand falls short of expectations; capacity release falls short of expectations; customer acquisition falls short of expectations.