晶盛机电(300316)2023Q1点评:双引擎驱动营收业绩持续增长 业绩接近此前预告上限

Jingsheng Electromechanical (300316) 2023Q1 review: Continued growth in revenue performance driven by dual engines, performance close to the upper limit of previous forecasts

長江證券 ·  05/05  · Researches

Description of the event

Jingsheng Electromechanical released the first quarter report of 2023. 2023Q1, Jingsheng Electromechanical achieved operating revenue of 3.6 billion yuan, +84.37% year on year, and achieved net profit of 887 million yuan to the mother, +100.43% year on year, and achieved net profit of 874 million yuan after deducting non-net profit of 874 million yuan, +102.41% year on year.

Incident comments

Net profit more than doubled, and the first-quarter results were close to the upper limit of forecast guidelines. According to the performance forecast previously released by the company, net profit for 2023Q1 is expected to increase 80.86%-103.47% year on year, and net profit after deducting non-net profit is expected to increase 82.40%-105.54% year on year.

The company's net profit for 23Q1 increased 100.43% year on year, and net profit after deducting non-net profit increased 102.41% year on year, all close to the upper limit of previous performance forecasts.

The profitability of its own business continues to improve, and the logic that the high-margin consumables business drives performance has been further implemented. The 23Q1 company's gross profit margin was 40.6%, a slight increase from the same period last month. The net profit margin was 28.1%, an increase of 4.51 pct over the previous year. Net interest rate fell 2.75 pct month-on-month from 2022-Q4, but other income/operating income decreased by 5.26 pct month-on-month. After the supplementary pullback, the company's net interest rate increased by about 2.5 pct month-on-month. The company's other earnings are mainly government subsidies related to the company's daily business activities, which do not affect the essence of the company's business operations.

On the equipment side, on-hand orders have further increased. By the end of March 2023, the company had not completed tax-inclusive contracts for crystal growth equipment and intelligent processing equipment totaling 26.059 billion yuan, of which 3,520 billion yuan had not been completed for semiconductor equipment. The company is actively diversifying and expanding, with multiple growth points forming stable support. In terms of semiconductor equipment, it has developed silicon carbide long-crystal equipment, slicing equipment, polishing equipment and epitaxial equipment based on advanced processes in the field of power semiconductors. Based on advanced processes, it has developed 12-inch epitaxial, LPCVD and other equipment. In terms of photovoltaic equipment, the company laid out tubular equipment for photovoltaic cells and module-end equipment, and set a target of more than 3 billion yuan (tax included) for new orders for battery equipment and module equipment in 23.

On the consumables side, the growth momentum of advanced materials is prominent, and the dual engine of “advanced materials and advanced equipment” has basically been formed. The company has established a product system focusing on high-purity quartz crucibles, diamond wire, sapphires, semiconductor valves, pipe fittings, magnetic fluids, and precision components, and develops products such as synthetic sand and quartz depots and a new generation of diamond wire. In the first quarter of 2023, the company accelerated the expansion and quality improvement of advanced materials businesses such as quartz crucibles and diamond wire. The advanced nature and scarcity of the company's consumables business was continuously verified from the revenue performance side. Since 202Q1, revenue has maintained a growth rate of more than 60% for 5 consecutive quarters.

Optimistic about the development potential of quartz crucibles, the subsidiary Meijing New Materials was spun off and listed. The main business of Meijing New Materials is semiconductor and photovoltaic quartz crucibles. Currently, the high-purity quartz sand required for quartz pans continues to be in short supply, and the price of quartz pans is high. Since the company laid out quartz sand in advance and quickly released the production capacity of quartz pans, it is expected that the company will fully benefit from the increase in the price of pans. This spin-off shows the company's confidence in the quartz crucible business and its long-term plans to continue developing related businesses.

The company's business layout strategy is forward-looking, and the technology is advanced. We continue to be optimistic about the company's development potential as a platform-based enterprise under the two-wheel engine of equipment and materials. The company's net profit is expected to be 4.97, 634, and 7.10 billion yuan respectively in 23-25, and the corresponding PE is 18, 14, and 13 times, respectively, and continues to be rated “buy”.

Risk warning

1. The risk that downstream production expansion falls short of expectations;

2. The risk that the company's new product development progress falls short of expectations;

3. The risk of on-hand order fulfillment.

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