Key investment points

The semiconductor business is actively expanding. In the field of semiconductor equipment, the company actively lays out research and development of large silicon wafer manufacturing, chip manufacturing, packaging and other equipment. Gradually, breakthroughs have been achieved in the localization of 8-12 inch semiconductor large silicon wafer devices, and related products have achieved mass sales and are widely recognized by downstream customers, leading the market share among domestic semiconductor long crystal equipment. Fully automatic monocrystalline silicon growth furnace products were selected in the “frontrunner” list of national enterprise standards in the field of special equipment for semiconductor devices, and the company's monolithic silicon epitaxial growth equipment won the 15th China Semiconductor Equipment Innovation Product.

Based on the extension of the industrial chain, the company has developed 6-8 inch silicon carbide long crystal equipment, slicing equipment, thinning equipment, polishing equipment and epitaxial equipment, 8-12 inch atmospheric pressure silicon epitaxial equipment, etc. in the field of power semiconductors to achieve domestic replacement of silicon carbide epitaxial equipment, and innovatively launched double-chip silicon carbide epitaxial equipment to greatly increase epitaxial production capacity. In the field of advanced manufacturing processes, the company has developed equipment such as 8-12 inch pressure-reducing silicon epitaxial equipment, LPCVD, and ALD, and has developed a variety of 12-inch wafer thinning equipment for advanced packaging. Relying on the development trends and opportunities of the domestic semiconductor equipment replacement industry, the company will continue to give full play to the core advantages of the company's strong innovation ability, accelerate the layout of core equipment in the semiconductor industry chain, and seize the domestic semiconductor equipment replacement market.

The photovoltaic business remains stable. In the field of photovoltaic equipment, the company's products cover silicon wafers, cells and modules to provide customers with complete photovoltaic solutions. On the silicon wafer manufacturing side, the company's main products include fully automatic crystal growth equipment (monocrystalline silicon growth furnace), crystal processing equipment (ring wire cutting machine, circular diamond wire cutting machine, diamond wire slicer), chip processing equipment (all-in-one glue removal insert cleaning machine), chip sorting and testing equipment, etc.; on the battery side, the company has developed tubular PECVD, LPCVD, diffusion, annealing, single-chamber multi-boat ALD, and dry cleaning; on the component side, the company has developed various battery process equipment including tile welding Multiple processes such as machines, layout machines, automatic frame feeders, glue filling detectors, etc. component equipment production line.

At the same time, with the material production and processing equipment chain as the main line, we provide customers with automation+digitalization+AI big data solutions and promote the improvement of customer production efficiency by realizing digital and intelligent communication between various equipment. In the photovoltaic equipment sector, based on the perspective of industrial chain innovation, the company collaborates with downstream strategic customers to continuously innovate in the fields of product technology and technology, automation and intelligence, and advanced manufacturing models. Differentiated battery equipment successfully achieved export breakthroughs. Innovative silver removal module equipment can greatly reduce silver consumption, thereby greatly reducing module costs and achieving good results in customer mass production tests.

Profit forecasting

We expect the company to achieve revenue of 19/20/22 billion yuan in 2024-2026 and net profit of 3.8/4/4.5 billion yuan respectively. The current stock price corresponds to the company's 2024-2026 PE 10 times 12/11/10 times, respectively, covered for the first time, and gave it a “buy” rating.

Risk warning

Industry fluctuation risk; market competition risk; technology research and development risk; loss of technical personnel; order fulfillment risk.