产品销量增长、结构优化，高阶球形粉持续增收。公司高阶球形产品销售规模增长、占比提升，带动公司整体业务收入实现较好增长，前三季度销售毛利率同比提升2.23 个百分点至42.16%。同时，公司将继续围绕集成电路封装材料（EMC、LMC、GMC、UF 等）市场需求，对具有更低放射性、更低CUT 点等特性的产品进行开发；围绕更低介电损耗等参数产品持续研发，以满足覆铜板行业产品升级的市场需求；致力于材料的导热性能提升，部分导热材料如氮化物持续优化产品设计，使得性能与成本达到客户的需求；持续提升产品的检验检测能力，并不断加深对关键核心装备的研究。Matters:
The company released the 2024 three-quarter report. In 24Q3, it achieved revenue of 0.25 billion yuan, yoy +27.25%; realized net profit of 0.067 billion yuan, yoy +30.10%; deducted non-net profit of 0.064 billion yuan, yoy +40.07%; achieved revenue of 0.694 billion yuan, yoy +35.79% in the first three quarters of 2024; realized net profit to mother 0.185 billion yuan, yoy +48.10%; deducted from mother Net profit of 0.169 billion yuan, YOY +57.52%.
Ping An's point of view:
Product sales increased, structure optimized, and revenue from high-grade spherical powders continued to increase. The sales scale and share of the company's high-end spherical products increased, driving the company's overall business revenue to achieve good growth. The gross sales margin increased 2.23 percentage points year-on-year to 42.16% in the first three quarters. At the same time, the company will continue to develop products with lower radioactivity and lower CUT points around the market demand for integrated circuit packaging materials (EMC, LMC, GMC, UF, etc.); continue to develop products with lower dielectric loss and other parameters to meet the market demand for product upgrades in the copper clad plate industry; strive to improve the thermal conductivity of materials, and continuously optimize product design for some thermal conductive materials such as nitride, so that performance and cost meet customer needs; continue to improve product inspection and testing capabilities, and continue to deepen research on key core equipment.
A large-scale electronic grade silicon powder project will be completed, and the scale of production capacity will rise steadily. The company's 0.0252 million-ton electronic-grade functional powder material project for integrated circuits is being accelerated. It is planned to be completed and put into operation in the second half of 2024. The main plan is to produce angular silicon, which can be further processed into spherical silicon; at the same time, the ultra-fine spherical powder production line for advanced integrated circuits, which will be invested 0.129 billion yuan to increase the production capacity of ultra-fine spherical powder by 3000 tons. It is expected to be put into operation in 2025, mainly in high-end fields such as high-frequency high-speed copper clad plates and IC carrier boards.
Reasonably control costs, and reduce the cost rate for each period. The company's total expense ratio for the first three quarters of 2024 was 14.03%, down 1.13 percentage points from 15.16% in the same period of 2023; the 24Q1-Q3 sales, management, R&D, and finance expense ratios were 1.15%, 6.35%, 6.25%, and 0.28%, respectively. Compared with 1.53%, 7.53%, 6.81%, and -0.70% in the same period of 2023, the expense ratio for all other periods declined year-on-year.
Investment suggestion: The company is the leading producer of electronic grade silicon powder in China. At the same time, it has large quantities of low-α spherical silicon powder and spherical alumina powder with high barriers for HBM memory chip packaging. Subsequently, a new 0.0252 million ton large-scale electronic-grade functional powder project for integrated circuits and a 3,000-ton ultra-fine spherical powder production line for advanced integrated circuits were built. The gradual release of production capacity will further increase the company's overall scale and share of high-end products and consolidate the company's leading position in this field.
Due to beta repair in the semiconductor industry and alpha resonance on the silicon powder circuit, the company's performance is expected to maintain a good growth trend. It is expected to achieve net profit of 0.256, 0.333, and 0.418 billion yuan (a slight decrease from the original values of 0.261, 0.335, and 0.42 billion yuan. Combined with the data disclosed in the three quarterly reports, the production of square silicon powder was slightly reduced). PE corresponding to the closing price of October 30, 2024 was 38.1, 29.3, and 23.3 times, respectively. The fundamentals of the terminal industry are gradually warming up, the company's production capacity is expected to increase, the share of high-end products will increase, and maintain the “recommended” rating.
Risk warning: 1. Downstream demand may fall short of expectations. If demand growth in terminal industries such as 5G, AI, cloud computing, and consumer electronics slows down, semiconductor fundamentals are difficult to repair, or the upward cycle inflection point is delayed, the growth rate of demand for integrated circuit packaging materials, copper-clad plates, etc. will fall short of expectations, and the company's silicon powder sales and sales prices may not be able to maintain the growth trend.
2. The risk of slowing down the project process. If the company's products being developed and projects under construction are delayed due to factors such as technical bottlenecks or a slowdown in facility construction, it will have a negative impact on the company's performance growth, and the competitiveness of related products may also decline. 3. Risk of fluctuations in raw material prices. 4. Accelerate the release of risks in the industry's production capacity.
