Anji Technology(688019) 国金证券·2024-10-20 02:40Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 156.77 CNY based on a PE valuation of 36 times for 2025 [2][62]. Core Insights - The company, Anji Technology, is a leading domestic manufacturer of chemical mechanical polishing (CMP) liquids, with a diversified business model covering various chemical products and a focus on self-supply of core raw materials [1][12]. - The CMP polishing liquid business is expected to see significant revenue growth, driven by the recovery of wafer fab utilization rates and ongoing capital expenditures from downstream customers [1][24]. - The functional wet electronic chemicals segment is also poised for growth, with increasing demand for products used in advanced packaging and electroplating [1][43]. Summary by Sections Company Overview - Anji Technology has established a "3+1" business structure, encompassing a full range of CMP liquids, functional wet electronic chemicals, and electroplating liquids and additives, while building its core raw material supply capabilities [1][12]. Investment Logic - CMP Polishing Liquids: - Recovery in wafer fab utilization rates indicates the industry has passed its low point, with continued capital expenditures from downstream wafer fabs [1][24]. - The company is advancing its CMP polishing liquid processes, with successful testing of new products based on cerium oxide abrasives [1][24]. - Expected revenues for CMP polishing liquids from 2024 to 2026 are projected at 14.86 billion, 18.44 billion, and 22.60 billion CNY, with year-on-year growth rates of 38%, 24%, and 23% respectively [1][57]. - Functional Wet Electronic Chemicals: - Increased demand driven by the recovery of wafer fab utilization rates [1][43]. - The company plans to expand production capacity for various cleaning and etching liquids, with projected revenues of 1.98 billion, 2.35 billion, and 2.64 billion CNY from 2024 to 2026, reflecting growth rates of 34%, 22%, and 20% respectively [1][57]. Profit Forecast and Valuation - Revenue forecasts for 2024-2026 are 17.04 billion, 21.08 billion, and 25.76 billion CNY, with net profits of 4.41 billion, 5.63 billion, and 7.01 billion CNY, reflecting growth rates of 9.60%, 27.47%, and 24.53% [2][60]. - The company maintains a stable gross margin above 50%, with CMP polishing liquids achieving a gross margin of 61.03% in the first half of 2024 [1][17]. Production Capacity and Expansion Plans - The company is actively expanding its production capacity, with plans for new facilities in Shanghai and Ningbo, aiming to enhance its output of CMP and functional wet electronic chemicals [1][21][43]. - The total planned capacity for CMP polishing liquids is expected to reach 60,000 tons upon completion of new production lines [1][32]. Market Position and Competitive Advantage - Anji Technology holds a significant market share in the CMP liquid sector, with a focus on high-quality products tailored for advanced semiconductor manufacturing processes [1][25]. - The company emphasizes R&D, with a research expense ratio exceeding 19%, positioning itself favorably against competitors [1][36].