KFMI(300666) 甬兴证券·2024-11-20 06:40Investment Rating - First coverage with a "Buy" rating [4] - Expected net profit for 2024-2026: 338 million, 446 million, and 587 million RMB respectively [4] - EPS for 2024-2026: 1.27, 1.68, and 2.21 RMB respectively [4] - PE ratios for 2024-2026: 60.96x, 46.14x, and 35.08x respectively [4] Core Views - Jiangfeng Electronics is a leading enterprise in high-purity metal sputtering targets, with a strong technological moat [4] - The company has established a good reputation in both domestic and international markets, supplying major international manufacturers [4] - The company is advancing equipment and production line localization, achieving self-control in production equipment and domestic production lines [4] - The sputtering target market is expected to grow steadily, with the global market size reaching 258 billion USD in 2023, and a CAGR of 12.25% from 2017 to 2023 [4] - High-purity metal sputtering targets are expected to reach a market size of 57.05 billion USD by 2028, with a CAGR of 7.6% from 2023 to 2030 [4] Business Performance and Growth - In H1 2024, the company achieved revenue of 1.627 billion RMB, a YoY increase of 35.91%, and net profit of 161 million RMB, a YoY increase of 5.32% [4] - The semiconductor precision components business achieved revenue of 570 million RMB in 2023, a YoY increase of 58.55% [4] - The company is actively expanding production, with multiple production bases progressing smoothly, including the Wuhan base and Ningbo Jiangfeng projects [4] - The company is making progress in third-generation semiconductor materials, with products like high-end copper-clad ceramic substrates and silicon carbide epitaxial wafers gaining market recognition [4] Industry and Market Analysis - The global sputtering target market is expected to reach 258 billion USD in 2023, with a CAGR of 12.25% from 2017 to 2023 [4] - High-purity metal sputtering targets are expected to reach a market size of 57.05 billion USD by 2028, with a CAGR of 7.6% from 2023 to 2030 [4] - The domestic sputtering target market is growing rapidly, with a CAGR of 12.9% from 2018 to 2022, and is expected to reach 43.1 billion RMB in 2023 [4] - The semiconductor sputtering target market in China is expected to grow at a CAGR of 10-15% from 2021 to 2026, reaching 3.7 billion RMB by 2025 [4] Competitive Landscape - The global high-performance sputtering target market is dominated by a few key players, including Honeywell, JX Nippon Mining & Metals, and TOSOH [4] - Domestic companies like Jiangfeng Electronics, A-share, and Longhua Technology are accelerating the substitution of international manufacturers [4] - Jiangfeng Electronics has successfully entered the supply chains of major international manufacturers, ensuring the security of key raw materials in critical industries [4] Future Outlook - The company is expected to benefit from the recovery of the semiconductor cycle and the acceleration of domestic substitution [4] - With the expansion of production capacity and the introduction of new products, the company's market share and competitive position are expected to improve [4] - The company's semiconductor precision components and third-generation semiconductor businesses are expected to contribute significantly to future growth [4]