鼎龙股份(300054):传统业务业绩稳步提升 半导体材料多点布局成果显著

Dinglong Co., Ltd. (300054): Traditional business performance has been steadily improved, and the multi-point layout of semiconductor materials has achieved remarkable results

長城證券 ·  04/17  · Researches

Incident: The company released its 2022 annual report on April 10. The company achieved revenue of 2,721 million yuan for the full year of 2022, an increase of 15.52% over the previous year; achieved net profit of 399 million yuan, an increase of 82.66% over the previous year; and realized net profit of 348 million yuan, an increase of 68.47% over the previous year. On a quarterly basis, the company achieved revenue of 766 million yuan in Q4 2022, an increase of 8.72% over the previous year, an increase of 19.16%; it achieved net profit of 95 million yuan, an increase of 51.37% over the previous year, a decrease of 5.05% over the previous year; and achieved net profit of 79 million yuan after deducting non-return mother's net profit of 79 million yuan, an increase of 38.04% over the previous year and a decrease of 17.30% from the previous month.

The new business contributed to a strong increase in performance and a significant increase in profit levels: in 2022, the company's business sales scale expanded, various products were gradually released, and performance grew rapidly. By product, the revenue of general consumables for printing and copying was 2,142 billion yuan, an increase of 6.43% over the previous year; the revenue of semiconductor materials was 522 million yuan, an increase of 69.93% over the previous year.

The company's comprehensive gross margin in 2022 was 38.09%, up 4.65 pct year on year; net interest rate was 16.69%, up 6.29 pct year on year. In terms of expenses, the company's sales, management, R&D, and financial expenses rates for the full year of 2022 were 4.22%/6.66%/11.62%/-1.72%, respectively. The year-on-year changes were -0.44/-0.87/0.78/-2.08pct respectively. The reason for the change in the company's financial expense ratio in 2022 was mainly due to exchange rate changes affecting exchange earnings. The company increased R&D investment in the optoelectronic semiconductor business. In 2022, it invested 318 million yuan in R&D, an increase of 12.26% over the previous year.

Focusing on the semiconductor materials field, the volume of advanced packaging production lines is expected to increase market share: the company focuses on the three segments of semiconductor materials in the semiconductor materials field: semiconductor CMP process materials, semiconductor display materials, and advanced semiconductor packaging materials. In the field of semiconductor CMP process process materials, CMP polishing pads have established a leading position in domestic supply, and the range of CMP polishing liquid and cleaning liquid products continues to be enriched and has entered the client release stage. In 2022, the company achieved sales revenue of 457 million yuan of polishing pads, an increase of 51.32% over the previous year. Profits increased sharply in line with revenue growth. In the field of semiconductor display materials, the company's flexible display base material YPI products continued to receive G6 line orders from various core domestic customers throughout the year, and market share continued to increase; PSPI products began shipping in the third quarter of 2022. In 2022, the company's semiconductor display materials YPI and PSPI products achieved sales revenue of 47.28 million yuan, an increase of 439% over the previous year. In the field of advanced semiconductor packaging materials, the company's production line construction is nearing completion, and commissioning work is underway. It is expected that two temporary bonding adhesives will have a total production capacity of 110 tons per year in the second quarter of 2023, and a total production capacity of 40 tons of two encapsulated photoresists will be achieved in the second half of 2023. The company continues to expand its new semiconductor material product layout. As the localization process of semiconductor materials accelerates and new production lines and new products are gradually released, the company is expected to further increase its market share.

The supply chain of the general consumables business for printing and copying has improved steadily: the domestic printing consumables market has reached a mature stage. According to IDC data, global printer shipments fell 1.4% year on year in 2022, but the annual market value increased 0.7% year on year to reach about 39.9 billion US dollars. Among them, China's printer shipments increased 8.2% in 2022. As a leading general consumables company for printing and copying, the company upstream provides core raw materials for printing and copying consumables such as color polymer toner, consumable chips, and imaging rollers, and sells two major terminal consumables products downstream, such as toner cartridges and ink cartridges, to achieve linkage between upstream and downstream industries and support the company's competitive advantage.

As a consumables supplier with a relatively complete supply chain for the domestic printing and copying general consumables business, the company will usher in market opportunities and further enhance profit margins as the market share of domestic printers expands.

First coverage, giving a “increase in holdings” rating: The company's main business includes semiconductor CMP process materials, semiconductor display materials, advanced semiconductor packaging materials, and general consumables for printing and copying. The main products include CMP polishing pads, CMP polishing liquid, CMP cleaning solution, yellow polyimide paste YPI, photosensitive polyimide PSPI, panel packaging material INK, temporary bonding adhesive TBA, encapsulating photoresist PSPI, and underfill underfill. At the same time, the company is a leading manufacturer of general printing and copying consumables with the most complete product system and the largest technical span. Benefiting from the acceleration of the localization process of semiconductor materials and the expansion of domestic printer market share, the company's performance is expected to continue to grow as the company releases advanced semiconductor packaging materials production capacity. The company's net profit for 2023-2025 is expected to be 520 million yuan, 712 million yuan, and 816 million yuan respectively. EPS is 0.55 yuan, 0.75 yuan, 0.86 yuan respectively, and PE is 51X, 37X and 32X respectively.

Risk warning: The release of new production capacity falls short of expectations, risk of fluctuations in raw material prices, risk of changes in demand from downstream customers, risk of market competition.

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