Events:
The company announced its results for the third quarter of 2022. In the first three quarters, the company achieved operating income of 1.925 billion yuan, an increase of 50.13% over the same period last year; net profit of 163 million yuan, down 13.55% from the same period last year; deducting 186 million yuan of non-net profit, an increase of 130.54% over the same period last year; and basic earnings per share of 0.51 yuan.
Income and orders continue to increase, and the expense rate is steadily falling.
The company's revenue scale continued to grow at a high level in the first three quarters, mainly due to the increase in equipment demand and new orders. The company's total new orders in the first three quarters are 3.621 billion yuan, and Q3 is expected to add at least 1.259 billion yuan. The company's gross profit margin remained stable at around 35%, while its net profit margin fell to 8.73% from 14.42% in the same period last year, mainly due to non-recurrent profits and losses. The company's non-recurrent profit and loss in the first three quarters was 22.97 million yuan, compared with a loss of 7.07 million yuan in the same period last year. The reason for the big year-on-year change was that the company made a loss of 36.72 million yuan on investment income from some financial assets held by the company, compared with a loss of 13.7 million yuan in the same period last year. From the cost side, the expense rate decreased steadily during the period, with the expense rate of 27.38%, 25.23% and 20.75% respectively in the first three quarters of 2020-2022, all of which decreased, mainly due to the continuous increase in income scale.
Fund-raising project is expected to achieve wet cleaning equipment key parts domestic replacement company on June 21 issued a convertible bond plan, to raise no more than 1.1 billion yuan for the construction of the investment project. Among them, the semiconductor equipment module and component manufacturing project is used for the breakthrough of key parts of wet cleaning equipment, and the research and development project of monolithic wet process module / core components aims to develop monolithic wet process modules, monolithic cavities and corrosion resistant and high precision core components of 14nm and below process nodes. The project of Pure North Semiconductor R & D and production Center mainly develops and produces high purity process systems and semiconductor wet equipment and components used in pan-semiconductor field.
Earnings forecast, valuation and rating
We estimate that the company's 2022-24 income will be 29.34max 38.62 / 4.705 billion yuan, the corresponding growth rate will be 40.75%, 31.66%, 21.82%, 3.69max, 4.95 / 629 million yuan, respectively, and the corresponding growth rate will be 30.81%, 34.34%, 26.96%, respectively, and the corresponding PE will be 33x/25x/20x. In view of the fact that the company's wet equipment is in a period of rapid expansion and the steady growth of various business sectors, the company is given 30 times PE in 2023, corresponding to the target price of 46.40 yuan, maintaining a "buy" rating.
Risk tips: supply chain delivery is not as expected, cleaning equipment base progress is not as expected, and so on.