Event

After April 10, 2023, the company released its annual report for 2022. In 2022, the company realized operating income of 2.721 billion yuan, an increase of 15.52% over the same period last year, a net profit of 390 million yuan, an increase of 82.66% over the same period last year, and a net profit of 348 million yuan, an increase of 68.47% over the same period last year.

Performance review

The company's performance is within the forecast range. The company's 22Q4 realized revenue of 766 million yuan, an increase of 8.72% over the same period last year, an increase of 19.16% over the same period last year, a net profit of 95 million yuan, an increase of 51.37% over the same period last year, a decrease of 5.05%, and a net profit of 79 million yuan after deducting non-return, an increase of 38.04% over the same period last year and a decrease of 17.30%.

① 's 22-year revenue growth of 15.52% over the same period last year is mainly due to:

The sales revenue of CMP polishing mat products increased significantly compared with the same period last year, and CMP polishing fluid, cleaning fluid products, and flexible display materials YPI and PSPI products began to increase; ② 's 22-year net profit increased by 82.66% over the same period last year, deducting the 68.47% increase in non-home net profit over the same period last year:

The profit of the new business segment CMP polishing mat business increased significantly with revenue growth, while the overall profit of the consumables sector increased significantly year-on-year due to increased revenue, product gross margin and exchange rate changes.

The rudimentary appearance of the platform material company, all kinds of semiconductor materials progress multi-point flowering ① company 22 years CMP polishing pad sales revenue of 457 million yuan, an increase of 51.32% over the same period last year.

As the only domestic supplier of CMP polishing pad, which has fully mastered the core R & D and manufacturing technology of the whole process of polishing pad, it deeply penetrates the supply chain of domestic mainstream wafer factories, and its leading position has been established.

② Company has achieved 17.89 million yuan in revenue from CMP polishing fluid and cleaning fluid products in the past 22 years. A number of CMP polishing liquid, cleaning fluid products continue to sell on a large scale in the client, and the rest of the process products cover a number of customers across the country to enter a critical verification stage, sales are expected to continue to rapid volume.

③ has made progress in customer verification of several advanced packaging materials:

Temporary bonding adhesive (TBA): sample delivery has been completed in a mainstream wafer factory in China, client verification is nearing completion, and mass production product introduction is in progress.

Packaging photoresist (PSPI): at present, the client-side sample delivery of a large packaging factory has been completed, and the verification work is progressing steadily.

Bottom filling adhesive (Underfill): small-scale formulation development has been completed and application evaluation is under way to achieve client-side sample delivery in the second half of 2023.

YPI winner takes all, market share continues to increase; PSPI breaks foreign monopoly, 22Q3 achieves mass production

① is the only YPI supplier in China to achieve volume production, and now it has covered all domestic mainstream AMOLED customers to form batch large-scale sales, and the market share of product competitiveness is constantly increasing.

PSPI of ② company breaks the exclusive monopoly of international competitors for more than a decade. The company has realized the industrialization of PSPI annual output of 200t in Wuhan, while the second phase of PSPI expansion project of 1000 tons of Dinglong (Xiantao) is expected to achieve mass production in 2023.

Other new panel materials, such as ③ packaging material TFE-INK, low-temperature photoresistance material OC, high-fold OC, high-fold INK and so on, are also being developed as planned.

Investment suggestion

We expect the company's return net profit from 2023 to 2025 to be 5.50,6.89 and 891 million yuan, corresponding to a price-to-earnings ratio of 45,36,28 times, maintaining a "buy" rating.

Risk hint

Downstream demand is lower than expected, new product research and development and introduction are not as expected.