发行可转债推动电子材料产能扩充，回购股份彰显长期发展信心。Brief performance review
The company disclosed the 2024 three-quarter report on October 31, 2024. 3Q24 achieved revenue of 3.501 billion yuan, +45.23% year-on-year; net profit to mother of 0.332 billion yuan, +22.58% year-on-year. 3Q24 achieved revenue of 1.649 billion yuan in a single quarter, +54.63% year over year; realized net profit of 0.227 billion yuan, +87.72% year over year, and realized net profit to mother after deduction of 0.195 billion yuan, +55.63% year over year.
The company has sufficient orders in hand, and the share of non-equipment orders has increased rapidly. According to the company's announcement, the number of new contracts signed in the non-equipment business (parts and modules, gas and advanced materials, MRO business) increased by 83% year-on-year, indicating major changes in the company's product and order structure, short revenue recognition for non-equipment businesses, and accelerated repayment of company orders. In addition, the company's net operating cash flow for the third quarter was 0.24 billion yuan, +107% year over year. Accounts receivable increased 25% year over year, and revenue increased 45% year over year. The increase in accounts receivable was lower than the increase in revenue, which also showed a significant increase in the company's repayment strength. Overall, the company's sales layout in domestic and foreign markets has continued to be optimized in recent years, and the non-equipment business has developed rapidly, accounting for more than 38% of new contracts.
The issuance of convertible bonds promotes the expansion of electronic material production capacity, and the repurchase of shares shows confidence in long-term development.
12M23 held a board meeting to review and approve the plan to issue convertible corporate bonds to unspecified targets. The total capital raised should not exceed 1.102 billion yuan (inclusive). The funds raised will be used to invest in projects such as expanding production of advanced electronic materials and biomedical core equipment and materials.
The company completed the repurchase on July 12, 2024. The repurchase of 1,615,286 shares of the company's shares, accounting for 0.56% of the total share capital, and the payment amount was RMB 49,99.33. The repurchased shares will all be used for employee stock ownership plans or share incentives at an appropriate time within 3 years after the repurchase is completed. Share buybacks are used for equity incentives, binding the company's core employees to show confidence in long-term development.
The company has sufficient on-hand orders. Relying on Capex's business to expand the Opex business, we expect the company to achieve net profit of 0.519/0.746/1.077 billion yuan in 24-26 years, respectively, +29%/44% compared with the previous EPS, 1.83, 2.63, and 3.80 yuan respectively, corresponding to the current PE of 19, 13, and 9 times, respectively, to maintain a “buy” rating.
Risk warning
The risk of raw material supply; the risk of product technology upgrades and iterations; the risk of downstream demand falling short of expectations; the risk of production capacity not being absorbed as expected; and the risk of lifting the ban on restricted stocks.
