Anji Technology(688019) 中银证券·2024-09-18 09:09Investment Rating - The report maintains a Buy rating for the company, with a target price of RMB 103.80 [1] - The sector rating is Outperform [1] Core Views - The company achieved steady growth in H1 2024, with revenue increasing by 38.68% YoY to RMB 797 million, while net profit attributable to shareholders decreased slightly by 0.43% to RMB 234 million [2] - The company's platform-based layout is progressing in an orderly manner, and its advanced process products continue to gain traction, supporting the Buy rating [2] - The company is committed to achieving a full product line layout for CMP slurries, with multiple products achieving mass production and sales in advanced nodes [2] - Functional wet electronic chemicals, electroplating solutions, and additives are also gaining momentum, with the company accelerating the establishment of a self-controllable supply chain for core raw materials [2] Financial Performance H1 2024 Summary - Revenue: RMB 797.27 million, up 38.68% YoY [3] - Gross profit margin: 57.72%, up 2.63 pct YoY [2] - Net profit margin: 29.35%, down 11.53 pct YoY [2] - Operating expenses ratio: 26.43%, up 1.99 pct YoY [2] Q2 2024 Summary - Revenue: RMB 418.82 million, up 37.06% YoY and 10.67% QoQ [4] - Net profit attributable to shareholders: RMB 128.92 million, down 18.84% YoY but up 22.68% QoQ [4] - Gross profit margin: 57.06%, up 2.98 pct YoY but down 1.40 pct QoQ [2] - Net profit margin: 30.78%, down 21.20 pct YoY but up 3.01 pct QoQ [2] Product Development CMP Slurries - Revenue from CMP slurries reached RMB 673 million in H1 2024, accounting for 84.39% of total revenue, with a gross margin of 61.03% [2] - Multiple copper and copper barrier layer slurries have achieved mass production and sales in advanced nodes, with domestic abrasive particles being used [2] - Dielectric material slurries, including silicon nitride and oxide slurries, are progressing well, with some products achieving mass production [2] - Tungsten slurries have passed verification and achieved mass production in advanced logic and memory chips [2] - TSV slurries, hybrid bonding slurries, and polymer slurries are making progress, with the company serving as a preferred supplier for multiple clients [2] Functional Wet Electronic Chemicals - Revenue from functional wet electronic chemicals reached RMB 118 million in H1 2024, up 80.94% YoY, accounting for 14.78% of total revenue, with a gross margin of 37.90% [2] - The product line includes post-etch cleaning solutions, photoresist strippers, post-polishing cleaning solutions, and etchants, widely used in logic circuits, 3D NAND, DRAM, and CIS [2] - Advanced node post-etch cleaning solutions and alkaline post-polishing cleaning solutions are gaining traction [2] Electroplating Solutions and Additives - Localized supply of electroplating solutions is progressing smoothly, with ongoing development and verification of damascene electroplating, TSV electroplating, and advanced packaging tin-silver electroplating [2] - The company is accelerating the establishment of a self-controllable supply chain for core raw materials, with multiple products using domestically produced silicon sol and cerium oxide abrasives achieving mass production [2] Valuation and Forecast - The company is expected to achieve net profits of RMB 487 million, RMB 611 million, and RMB 723 million in 2024, 2025, and 2026, respectively, with EPS of RMB 3.77, RMB 4.73, and RMB 5.59 [2] - The corresponding P/E ratios are 27.5x, 21.9x, and 18.6x for 2024, 2025, and 2026, respectively [2] - The report maintains a Buy rating based on the company's steady growth and platform-based layout [2]