Incident: The company released its 2022 annual performance report. In 2022, the company achieved operating income of 10.638 billion yuan, an increase of 78.45% over the previous year, and achieved net profit attributable to shareholders of listed companies of 2,917 million yuan, an increase of 70.43% over the previous year.
There are sufficient orders for equipment on hand, laying the foundation for increased performance. In terms of semiconductor equipment, in 2022, the company followed the industry trend of an accelerated localization process and achieved a rapid year-on-year increase in semiconductor equipment orders. In terms of photovoltaic equipment, the company actively develops innovative photovoltaic equipment to further improve the quality of technical services and strengthen the company's core competitiveness in the high-end photovoltaic equipment market. As of September 30, 2022, the company's uncompleted contracts for crystal growth equipment and intelligent processing equipment in the photovoltaic field totaled $21.33 billion. We expect the company to have sufficient orders for the full year of 2022, laying the foundation for growth in 2023.
The expansion of production of crucibles and diamond wires is advancing at an accelerated pace. Focusing on the dual-engine sustainable development strategy of “advanced materials and advanced equipment”, the company strengthened R&D investment and technological innovation, improved market service quality, strengthened organizational management capabilities, further deepened the collaborative development industrial layout of equipment+materials, and achieved rapid development of various businesses. In terms of materials, the company accelerated the expansion of production of advanced materials such as high-purity quartz crucibles and next-generation diamond wire, and achieved rapid year-on-year growth in business performance. The company's next-generation diamond wire production project was put into operation in November 2022, which will effectively expand the development of the company's core auxiliary consumables business and further improve the company's industrial chain support in the field of semiconductor materials and equipment.
The SiC business expanded smoothly, and epitaxial equipment was sold in bulk. The company has developed silicon carbide long-crystal equipment, slicing equipment, polishing equipment, and epitaxial equipment based on the field of power semiconductors. The silicon carbide epitaxial equipment produced by the company has been sold in batches, and the product quality has been unanimously praised by downstream customers. On February 4, the company's new 6-inch two-chip silicon carbide epitaxial equipment launch conference came to a successful conclusion, marking a major breakthrough in the third-generation semiconductor field of Jingsheng Electromechanical. The product has taken two years of R&D, testing and verification, and has achieved an international leading edge in epitaxial production capacity and operating costs. Compared with single-chip equipment, the production capacity of a single unit of new equipment has increased by 70%, and the operating cost of a single chip can be reduced by more than 30%.
Profit forecast: The company's net profit for 2022-2024 is estimated to be 29.17/42.73/5.703 billion yuan, corresponding to PE29.7/20.3/15.2 times, maintaining the “increase in holdings” rating.
Risk warning: Iterative photovoltaic technology falls short of expectations, new technology research and development falls short of expectations, and market competition increases risks.