Semiconductor equipment manufacturers continue to develop new technologies, and products are widely used in integrated circuit production lines. In 2016, Jingyi Equipment was established, the company Chiller entered the Intel supply chain in 2017, and fully adapted to the needs of electronic temperature control equipment in Panlin and Tokyo in 2019. The company focuses on the R&D, production and sales of semiconductor-specific temperature control equipment, semiconductor-specific process exhaust gas treatment equipment, and wafer transfer equipment. It is currently the only equipment manufacturer in China that has realized large-scale installation and application of semiconductor-specific temperature control equipment. It is also currently one of the few equipment manufacturers in China that have achieved large-scale installation and application of semiconductor-specific process exhaust gas treatment equipment. The company's product technology level is leading domestically and internationally advanced.
Both revenue and net profit increased. Since 2019, the company's revenue and net profit have continued to grow. From January to September 2023, the company's revenue was 604 million yuan, up 12.16% year on year, and net profit from the parent reached 117 million yuan, up 23.84% year on year. Among them, net profit for the mother was 289% for the year 2020-2022 CARG. Semiconductor equipment is the main source of revenue and has the highest level of gross margin. By business, in the company's business, semiconductor equipment had the highest revenue, with 2023H1 revenue of 4.1 billion yuan, accounting for 95.3%. The gross margin continued to be higher than that of other businesses. The gross margin for 2023H1 was 39.79%, and the gross margin for parts, equipment, and maintenance services was 23.49% and 29.12%, respectively.
The development of the special equipment market is mainly driven by the downstream semiconductor manufacturing market. The company's semiconductor special equipment provides necessary functions such as temperature control, process exhaust gas treatment, and wafer transmission for the semiconductor production process. It is a special production equipment necessary for wafer manufacturing. Demand for this type of equipment will grow as the construction of wafer manufacturing production lines accelerates and equipment investment and expenditure increases. According to IC Insights data, the global semiconductor industry's capital expenditure in 2021 was US$153.9 billion, up 36.07% year on year. Since 2010, the compound annual growth rate has been 9.99%, maintaining rapid growth.
Continue research and development to build a technology moat, and ongoing research projects help product iteration. As of H1 in 2023, the company has 10 major R&D projects, targeting the three main equipment. At the same time, the company's integrated circuit manufacturing wafer process equipment front-end module product development project targets EFEM equipment, develops new product lines, and expands the company's business coverage. Aiming at digital intelligence, the company is developing integrated circuit manufacturing temperature control equipment information collection and intelligent monitoring systems to improve product inspection efficiency and enhance the intelligent management of a large number of on-site installations. At the same time, new technologies and products developed are quickly applied to sold products, devices and technology are upgraded, the life cycle of Chiller products is extended, and market competitiveness is enhanced.
Raise capital to expand production and re-empower it. The company plans to publicly raise 906 million yuan, of which 506 million yuan will be used for the R&D and production of high-precision control equipment for integrated circuit manufacturing (Anhui) base project, which can effectively enrich and improve the company's existing product range, enhance R&D efficiency, increase the company's domestic market share, and promote the continuous growth of the company's main business in the future. Liquidity supplements meet the company's large demand for working capital in the context of the rapid development of the industry and the rapid growth of the company's performance. The implementation of fund-raising projects will help the company expand its products to meet downstream demand and market growth, and accelerate market development progress.
Thanks to the recovery in industry prosperity, equipment demand generated by the expansion of fab production and localized replacement, and the company's continuous promotion, increased R&D to break through the technical constraints of high-end products and increase market share, we expect the company to achieve revenue of 7.78/10.24/1,352 billion and net profit of 1.41/1.80/249 million yuan from 2023 to 2025. The company was founded for a short time. Currently, it is still in a stage of rapid performance development, and there is still plenty of room for improvement in revenue and profit scale. It continues to be optimistic about subsequent development, covered for the first time, and gave it a “highly recommended” rating.
Risk warning: product progress falls short of expectations, global trade disputes, management and internal control risks