Revenue performance increased throughout 2022, maintaining the “buy” rating
On April 10, 2023, the company released its 2022 annual report. It achieved revenue of 2,721 million yuan in 2022, +15.52% year on year; net profit of the mother was 399 million yuan, +82.66% year on year; after deducting non-net profit of 348 million yuan, +68.47% year on year; gross profit margin was 38.09%, +4.65pcts year on year. Calculated by 2022 Q4, revenue was 766 million yuan, +8.72% year on year, +19.16% month on month; return to mother's net profit was 95 million yuan, +51.37% year on year, -5.05% month on month; after deducting non-net profit of 79 million yuan, +38.04% year on year, -17.30% month on month; gross profit margin was 37.63%, +6.20 pcts year on year, -1.48pcts month on month. Considering the downward impact of the semiconductor cycle, we lowered our 2023-2024 performance forecast and added the 2025 performance forecast. We expect the net profit for 2023-2025 to be 4.93 (-0.50) /7.08 (-0.36) /919 million yuan, and the corresponding EPS is 0.52 (-0.05) /0.75 (-0.03) /0.97 yuan. The current stock price corresponds to PE 50.8/35.3/27.2 times. The company's layout is in the semiconductor materials industry, and the product continues to break through. We are optimistic about the company's future Develop and maintain the “buy” rating.
The pan-semiconductor business is growing steadily, the advantages of CMP and display materials continue to increase, and the prospects are promising
By product: In 2022, the company's CMP materials achieved revenue of 522 million yuan, +69.93% year on year, accounting for 19.19% of total revenue; gross profit ratio of 65.54%, +2.25pcts year on year; printing and copying general consumables business revenue was 2,142 billion yuan, +6.43% year on year, accounting for 78.71% of total revenue; gross profit margin 32.62%, year-on-year +3.47pcts. Among them, sales of toner cartridge products reached a record high in recent years, operating income increased sharply by 28%, and profit turned a profit year over year. The company achieved sales revenue of 457 million yuan of polishing pads in 2022, +51.32% year on year. At present, the company's CMP polishing pad products have entered a stable large-scale production and sales stage. On the basis of the total production capacity of the first and second phases of the Wuhan headquarters with an annual production capacity of 300,000 polishing pads, the new Qianjiang Phase III polishing pad product and the raw materials for the core jacket have been put into operation, adding to the production capacity of 200,000 pieces per year, and breakthrough progress has been made in R&D. The first order for new Qianjiang polishing pads was obtained in 202Q4. The company lays out a variety of display materials, and semiconductor display materials achieved a total sales revenue of 47 million yuan in 2022, +439% over the same period last year. Among them, YPI, a flexible display base material, continued to receive G6 line orders from various core domestic customers throughout the year; PSPI achieved mass sales for clients starting in 202Q3, breaking the absolute monopoly situation abroad. At the same time, in order to further increase production capacity, the PSPI phase II expansion project with an annual production capacity of 1000 tons in the Dinglong (Xiantao) Optoelectronic Semiconductor Materials Industrial Park is expected to achieve large-scale mass production in mid-2023.
Risk warning: Industry sentiment falls short of expectations, new product breakthroughs fall short of expected risks, and competition increases risks.