PACIFIC QUARTZ(SH:603688) Xin Lang Cai Jing·2025-06-07 14:30Core Viewpoint - The company, Quartz Co., is a leading enterprise in the high-purity quartz material industry, with a fully integrated production capability from raw quartz sand to finished products, positioning itself to capitalize on domestic substitution trends in the high-purity quartz sand market [1][2]. Group 1: Product and Market Position - The main products of the company include high-purity quartz sand, high-purity quartz tubes (rods, blocks, and cylinders), and high-purity quartz crucibles, with revenue contributions in 2024 being 17.61%, 80.28%, and 0.21% respectively [1]. - In 2021, the national production of high-purity quartz sand (4N5 grade or higher) was 80,000 tons, with the company producing 24,232 tons, accounting for 30.29% of the market share [1]. - The revenue distribution in 2024 across different application sectors shows that photovoltaic, lighting, and fiber semiconductors contribute 31.51%, 25.27%, and 41.32% respectively, with a significant increase in the photovoltaic sector due to rising prices [1]. Group 2: Technological and Competitive Advantages - The company has developed proprietary high-purity quartz sand purification technology, making it one of the few global players capable of large-scale production, alongside companies like Unimin and TQC [2]. - The high-purity quartz sand industry faces significant barriers, including the scarcity of stable high-purity mineral sources and stringent purity requirements for processing technology [2]. - Recent discoveries of high-purity quartz mineral deposits in regions like Xinjiang, Henan, and Anhui indicate a potential for domestic mineral source substitution, reducing reliance on foreign supplies [2]. Group 3: Semiconductor Market Potential - The semiconductor manufacturing process requires various quartz products, with the market for semiconductor quartz materials being substantial and characterized by high entry barriers due to purity requirements [3]. - In 2020, the domestic consumption of high-end high-purity quartz sand (4N5 grade and above) was 60,000 tons, with the semiconductor sector accounting for 43.3% of this demand [3]. - The estimated market size for high-purity quartz sand used in semiconductors in mainland China is approximately 3.499 billion yuan, with the overall market for semiconductor quartz devices estimated at 7.511 billion yuan [3]. Group 4: Certification and Supply Chain Control - The company is the only domestic entity to have passed the stringent certification processes required by major semiconductor equipment manufacturers, which is crucial for entering the wafer fabrication supply chain [4]. - The current geopolitical climate and trade restrictions have heightened the urgency for domestic semiconductor manufacturers to seek local suppliers, which may accelerate the adoption of the company's products [4]. Group 5: Financial Projections - Revenue forecasts for the company from 2025 to 2027 are projected at 1.383 billion, 1.825 billion, and 2.283 billion yuan, reflecting year-on-year growth rates of 14.3%, 31.93%, and 25.09% respectively [5]. - The net profit attributable to the parent company is expected to be 384 million, 531 million, and 691 million yuan for the same period, with corresponding growth rates of 15.07%, 38.35%, and 30.12% [5].