Event: on December 10, the company issued an announcement to adjust the financing method, terminated the 2021 A-share convertible bond offering project, and made public the 2022 non-public A-share offering plan.
With a substantial increase in the amount of financing, focusing on the new Qidong semiconductor equipment industrialization phase II project, taking into account the capital market environment, the company's actual situation, development planning and other factors, the company plans to adjust the financing method, terminate the public offering of A-share convertible bond investment projects, and adjust the financing method to non-public offering shares. After the financing adjustment, the funds raised in this non-public offering will not exceed (including) 1.8 billion yuan, which is much higher than the previous convertible bond project (not more than (including) 1.1 billion yuan). The implementation of the project specifically includes: 1) single-chip wet process module, core parts research and development and industrialization project: the total investment is 670 million yuan, and the fund to be raised is 400 million yuan, all of which are expected to achieve an average annual sales income of 720 million yuan after delivery. 2) to the pure northern semiconductor R & D and production center project: the total investment is 330 million yuan, and the fund to be raised is 160 million yuan, all of which are expected to achieve an average annual sales income of 480 million yuan after delivery. 3) the second phase of Qidong semiconductor equipment industrialization base project: the total investment is 800 million yuan, and the fund to be raised is 700 million yuan, which is mainly used for R & D and mass production of integrated circuit equipment such as furnace tube and glue development equipment, photovoltaic cashmere cleaning equipment and other pan-semiconductor process equipment, all of which are expected to achieve an average annual sales income of 1.21 billion yuan after delivery. 4) replenish working capital or repay debts: it is proposed to use the raised funds of 540 million yuan. Compared with the previous convertible bond projects, in addition to the increase in the investment amount of some projects, the second phase of Qidong Semiconductor equipment industrialization Base is not only a new fund-raising project, but also the largest investment project.
Horizontal: help furnace tube, glue development equipment industrialization, further enrich the product line in the semiconductor field, the company firmly cleaning equipment industry leading position at the same time, horizontal expansion of furnace tube, glue development equipment, etc., is expected to further improve the semiconductor equipment product line. 1) Furnace tube equipment: the global market size of furnace tube equipment in 2021 is about 2.8 billion US dollars, which is basically monopolized by overseas leaders such as TEL, Kokusai and ASM, and the domestic production rate is very low. 2) glue development equipment: the global sales of front glue development equipment is about 1.9 billion US dollars in 2020, and is expected to exceed 2.5 billion US dollars in 2022. In the field of photoresist development equipment in the lithography process, Japan's TEL is the largest company in the world, with a market share of nearly 87%, and a large space for domestic substitution. Through this investment project, the company will form an annual production capacity of 50 sets of integrated circuit equipment such as furnace tube, glue development and so on, and realize the platform expansion of semiconductor equipment.
In addition, the company is also actively laying out photovoltaic, panel and other pan-semiconductor industries, and will add 120 sets of photovoltaic process equipment and 10 sets of panel process equipment to further open up room for growth.
Vertical: focus on the layout of semiconductor equipment parts, opening up room for long-term growth to benefit from the rapid expansion of domestic semiconductor equipment, Chinese mainland semiconductor equipment parts demand is increasing rapidly, we estimate that the market size in 2021 is about 11.7 billion US dollars, superimposed with domestic alternative drive logic, we judge that the local semiconductor equipment parts demand is expected to increase significantly in 2023. In addition, horizontal comparison of AMAT and LAM,2021 after the fiscal year service business revenue accounted for 22% and 33% respectively, enough to see the strategic importance of the parts business to semiconductor equipment enterprises. Through this fund-raising project, the company aims to develop advanced semiconductor wet process modules, monolithic cavities, high purity valves, etc., which are suitable for the manufacturing process and industrialization of logic chips and high density memory chips below 14nm, and can vigorously promote the localization process of monolithic cavities. After the completion of the project, the company will form an annual production capacity of 100 sets of high-level process single-chip wet modules and nearly 2000 sets of various parts and components, thus tamping the core competitiveness.
Profit forecast and investment rating: considering that the company has sufficient orders on hand, we maintain the forecast of 2022-2024 net profit of 3.81,5.57 and 742 million yuan respectively, and the current market capitalization corresponds to 36 times, 25 times and 19 times of the dynamic PE, respectively.
Risk tips: new product research and development is not as expected, order customer breakthrough is not as expected, and so on.