Core views:
The company focuses on clean room system integration services, and has full industry chain links and integrated service capabilities.
The company mainly provides clean room system integration services including project planning and design, procurement, system integration, secondary distribution, operation and maintenance for semiconductors and pan-semiconductors, new displays, life sciences, food and drug health, and other intelligent manufacturing. In 2023, the company signed a new order of 4.95 billion yuan, an increase of 48% (semiconductor orders increased 70%); the total amount of orders in hand was 2.87 billion yuan, an increase of 58%, which will effectively support future revenue growth.
Increased capital expenditure in downstream panel semiconductors and other industries supports the growth of demand, and the industry has broad prospects for development. The scale of downstream industries continues to expand, and demand for superposition technology upgrades is increasing, demand for clean room introduction and upgrading continues to increase, and national strategic emerging industries such as semiconductors, new displays, and biomedicine are developing rapidly, driving future growth demand for clean rooms. According to the company's prospectus, China's clean room market is expected to reach 358.65 billion yuan by '26, with a compound growth rate of 15% from 16-26. BOE announced in November 23 that it plans to build the 8.6th generation AMOLED production line in '24, with a total investment of 63 billion yuan. Assuming that the clean room investment accounts for 10% to 15%, it will generate clean room orders of about 60-90 billion yuan. Increased capital expenditure in downstream panel and other industries will support the growth in demand.
Company advantages: Excellent customer resources, fine control ability and technological innovation ability. The company's customers are all leading high-quality high-tech enterprises at home and abroad. The proportion of the top five customers is constantly decreasing, the number of customers is constantly being enriched, and the concentration is high and the risk is constantly decreasing. Furthermore, the company has summed up a refined management system based on rich project experience. The company has built its core competitiveness through high-quality customer resources and excellent management and control capabilities, and its profit level is also leading in the industry.
Profit forecast and investment advice: With 23 years of rapid order growth, the company is expected to gradually release performance over the next two years. Therefore, we expect the company's net profit to be 2.77/355/ 427 million yuan respectively in 24-26 years, with a compound growth rate of about 25% in the next few years. Considering the company's own growth rate and reference to comparable company valuations, the company will be given a PE valuation of 25 times in 2024, corresponding to a reasonable value of 13.26 yuan/share, covering the first time to give it a “buy” rating.
Risk warning: economic cycle fluctuations; increased industry competition; risk of fluctuations in raw material prices, etc.