Yoke Technology(SZ:002409) Southwest Securities·2024-07-31 10:30Investment Rating - The report does not explicitly state an investment rating for the company. Core Views - The company is positioned as a platform-type enterprise in electronic materials through global acquisitions, having expanded its business from flame retardants to LNG insulation materials and various electronic materials [2][12]. - The LNG shipping market is performing strongly, with the company holding a full order book for its insulation materials, which will continue to contribute to its performance in the coming years [3][46]. - The company benefits from the domestic substitution demand for color photoresists as panel production capacity shifts eastward, with expectations for increased market share following the local production of photoresist products [4][20]. - The rapid development of AI models is driving high demand for high-bandwidth memory (HBM), which in turn boosts the demand for semiconductor precursors, with the global precursor market projected to grow significantly by 2028 [5][28]. Summary by Sections Company Overview - Established in 1997, the company initially focused on foaming agents and later entered the flame retardant industry, becoming the only domestic supplier of LNG insulation materials certified by GTT and classification societies [2][12]. - The company has made several acquisitions since 2016 to expand into electronic materials, including silicon micropowder, electronic specialty gases, semiconductor precursors, and various types of photoresists [2][12]. Market Performance - The LNG shipping market has seen a surge in demand due to greenhouse gas reduction policies and geopolitical factors, with the company being the sole domestic supplier of LNG insulation materials, ensuring a robust order pipeline [3][46]. - The domestic market for color photoresists is still developing, with the company positioned as a key supplier to major panel manufacturers, benefiting from the shift in production capacity [4][20]. Financial Performance - The company achieved a record revenue of 4.738 billion yuan in 2023, primarily driven by its photoresist and precursor businesses [2][28]. - The company has experienced a compound annual growth rate (CAGR) of 32.3% in revenue from 2018 to 2023, with net profit also showing significant growth during this period [28][31]. Competitive Advantages - The company holds a strong market position in electronic materials, supplying major semiconductor manufacturers and being the first domestic supplier of LNG insulation materials [20][28]. - The company has a solid R&D focus, with increasing investment in technology development to enhance its competitive edge [36][37].