1H23's revenue increased 134.3% year over year, and semiconductor equipment received nearly 300 million yuan in new orders. In the first half of 2023, the company achieved revenue of 389 million yuan (YoY 134.3%), net profit of 119 million yuan (YoY 318.1%), net profit of non-attributable income of 225 million yuan (YoY 1.03%). Among them, 2Q23 achieved revenue of 265 million yuan (YoY 285.8%, QoQ 113.2%), net profit of 38 million yuan (YoY 3959.1%, QoQ -52.3%), net profit of non-attributable net profit of 112 million yuan (YoY 3043.3%, QoQ -5.8%). In the first half of 2023, Kaishitong and Jiaxin Semiconductor, which are subsidiaries, received a total of nearly 300 million yuan in integrated circuit equipment orders, and the two companies accumulated orders for integrated circuit equipment of nearly 1.5 billion yuan.
Kaishitong added two new 12-inch wafer manufacturing customers and used the Jinqiao base to enhance R&D and industrialization capabilities.
Kaishitong, a holding subsidiary of 1H23, has produced and delivered a variety of high-end ion implanter series products, added two new 12-inch chip wafer manufacturer customers, and added more than 160 million yuan in orders, covering various application fields such as logic, storage, and power. In the first half of the year, Kaishitong opened the Jinqiao R&D and manufacturing base in Pudong, Shanghai. The total area of the dust-free workshop and office was over 4,400 square meters, covering technical research and development, CIP improvement, component assembly and verification, process verification, manufacturing, and customer training. It can also provide customers and partners with the evaluation of a full range of products such as low energy large beams, ultra-low temperature low energy large beams, heavy metal low energy large beams, and high energy ion implanters to shorten the time from technical verification to customer introduction.
Jiaxin Semiconductor has won the bid for various equipment, and the new plant will be put into operation in October. Jiaxin Semiconductor, a subsidiary of 1H23, added more than 130 million yuan in new orders, and received more than 4.7 billion yuan in total orders after establishment. Since the second half of 2022, Jiaxin Hongyang, a subsidiary of Jiaxin Semiconductor, has successfully won the bid for 4 rapid heat treatment equipment, 4 silicon nitride plasma etchers, 3 metal plasma etchers, and 3 sidewall plasma etchers; Jiaxin Jianeng has successfully won the bid for 8 high-density plasma thin film deposition equipment, 2 boron-phosphorus-doped silicon dioxide thin film chemical deposition equipment, 1 silicon dioxide plasma thin film deposition equipment, 3 titanium/titanium nitride deposition equipment, 1 aluminum copper metal sputtering equipment, 23 double combustion+double washing gas treatment equipment. All of Jiaxin Semiconductor's new plant construction projects will be completed in mid-October 2023, and the project is expected to be put into operation by the end of October 2023.
Investment advice: “1+N” semiconductor equipment platform company, maintain a “buy” rating. We expect revenue of 1,452, 22.01, and 2,981 billion yuan in 2023-2025, net profit of 438, 542 million yuan, and 731 million yuan, maintaining a “buy” rating.
Risk warning: downstream demand falls short of expectations; new product development falls short of expectations; worsening international relations, etc.