神工股份：硅零部件市场中长期需求增长可期

Core Viewpoint - ShenGong Co., Ltd. (688233) has shown significant growth in revenue and profitability, driven by its focus on semiconductor-grade single crystal silicon materials and components, with a strong emphasis on domestic supply chain development [1][2] Group 1: Financial Performance - In 2024, the company achieved revenue of 302 million yuan, a year-on-year increase of 124%, and net profit of 41.15 million yuan, marking a return to profitability [1] - The net cash flow from operations was 173 million yuan, an increase of approximately 110% compared to the previous year [1] - In Q1 2025, the company reported revenue of 106 million yuan, a year-on-year growth of 81.49%, and net profit of 28.51 million yuan, a staggering increase of 1850.70% [1] Group 2: Business Structure and Market Position - The gross margin for the main business of large-diameter silicon materials has recovered to approximately 64%, maintaining a leading profitability level [2] - The revenue contribution from the growth segment of silicon components has reached about 40%, establishing a second growth curve and enhancing revenue stability [2] - Domestic business revenue now accounts for approximately 70% of total revenue, indicating significant achievements in the localization of the semiconductor supply chain in China [2] Group 3: Market Demand and Growth Potential - The domestic market demand for silicon components is estimated at 2.5 to 3 billion yuan per year, with a current localization rate of only about 10% [3] - The global market demand for silicon components is projected to be between 1.5 to 2 billion USD per year [3] - The demand for silicon components is expected to grow in the medium to long term, driven by the increasing production capacity and technological capabilities of domestic integrated circuit manufacturers [3] Group 4: Product Lifecycle and Strategy - From a macro perspective, silicon components are in the "mature phase" in the international supply chain, while in the domestic market, they are still in the "introduction phase" [4] - The company has been deeply involved in the silicon components business for nearly a decade, playing a unique role in the security construction of the domestic semiconductor supply chain [4] - The product characteristics of silicon components include "variety and small batch," with higher gross margins for larger and more complex products [4] Group 5: Production Capacity and Expansion - The company has proactively reserved factory space for high production capacity, ensuring ample room for expansion [5] - It has received stable support from downstream suppliers regarding equipment, delivery times, and technical services [5] - The company is located in Jinzhou, Liaoning, an early quartz processing base in China, providing access to skilled labor in brittle material processing [5] Group 6: Future Outlook - The company plans to expand production capacity based on downstream customer orders, aiming to maintain industry-leading yield and gross margin levels [6] - It will continue to focus on high-end products to meet the domestic demand for silicon components [6]