CCEM(300655) 光大证券·2024-08-15 08:03Investment Rating - The report maintains a "Buy" rating for Jingrui Electric Materials (300655 SZ) [2] Core Views - Jingrui Electric Materials is a leading domestic wet electronic chemicals company, with improving profitability as the semiconductor industry recovers [2] - The company has achieved international advanced levels in high-purity chemicals technology, with multiple products reaching SEMI G5 grade purity [3] - Its subsidiary Ruihong Suzhou focuses on high-end photoresist R&D and completed RMB 1 07 billion in financing in 2023 [4] - Global semiconductor sales showed recovery in 2024, benefiting upstream materials like wet electronic chemicals and photoresists [5] - The company completed a private placement in H1 2024, raising RMB 450 million to expand NMP production capacity [6] Financial Performance - Revenue declined 25 57% YoY in 2023 to RMB 1 299 billion but is expected to grow 11 19% in 2024 [8] - Net profit dropped 90 93% YoY in 2023 to RMB 15 million but is forecast to surge 514 53% in 2024 [8] - ROE (diluted) was 0 65% in 2023, projected to improve to 3 26% in 2024 and 5 82% by 2026 [8] - Gross margin improved from 22 4% in 2022 to 23 6% in 2023, with further expansion expected [9] Market Position - The company is the only domestic supplier of high-purity hydrogen peroxide, with over 40% market share [3] - Its high-purity hydrogen peroxide revenue grew nearly 30% YoY in 2023, with shipments up 40% [3] - High-purity sulfuric acid shipments increased 42% YoY in 2023, supplying major 12-inch wafer manufacturers [3] - The company is among the top domestic NMP producers, supplying major clients like Samsung Huanxin [6] Capacity Expansion - Total high-purity chemicals capacity reached 232 000 tons/year by end-2023, with 100 000 tons/year under construction [3] - The company plans to expand NMP production capacity through a RMB 450 million private placement [6] - New projects include 20 000 tons/year of γ-butyrolactone and 100 000 tons/year of electronic-grade NMP [6] Industry Outlook - Global semiconductor sales grew 18 6% YoY in Jan-May 2024, with Asia-Pacific sales up 20 3% [5] - The recovery in semiconductor industry is expected to boost demand for wet electronic chemicals and photoresists [5] - National support for new quality productive forces and semiconductor industry recovery will benefit the company [7]