DING LONG(300054) 华金证券·2024-06-12 12:30Investment Rating - The investment rating for the company is "Buy-A" [1][3]. Core Insights - The company has achieved significant growth in its CMP polishing pad sales, with a record monthly sales of over 20,000 pieces in May 2024. This growth is attributed to its comprehensive product line and strong customer relationships [1]. - The company has successfully achieved self-sufficiency in the three core raw materials for CMP polishing pads, enhancing its supply chain control and competitive edge [1]. - Revenue projections for 2024 to 2026 have been adjusted upwards, with expected revenues of 32.18 billion, 38.19 billion, and 44.61 billion yuan, reflecting growth rates of 20.7%, 18.7%, and 16.8% respectively [3][4]. Summary by Sections Company Overview - The company is the only domestic supplier with full control over the R&D and manufacturing of CMP polishing pads, covering both hard and soft pads [1]. - The successful mass production of CMP polishing hard pads at its Wuhan facility has allowed the company to penetrate mainstream customer markets [1]. Financial Performance - The company reported a revenue of 2,721 million yuan in 2022, with a projected increase to 3,218 million yuan in 2024, representing a year-on-year growth of 20.7% [4]. - The net profit attributable to the parent company is expected to rise from 390 million yuan in 2022 to 441 million yuan in 2024, with a growth rate of 98.6% [4]. Market Position - The company is positioned as a primary supplier of CMP polishing pads to several core wafer manufacturers in China, with expectations for deeper market penetration and expansion into overseas markets [3][4]. - The demand for semiconductor wafers is expected to continue growing, driven by advancements in AI, 5G communication, and other high-performance applications, which will benefit the CMP polishing materials industry [1]. Production Capacity - The company has established a robust production capacity, with the Wuhan facility capable of producing 400,000 hard pads annually and the Qianjiang facility producing 200,000 soft pads [1]. - The company is also expanding its production capabilities for microspheres, which are critical for polishing pad performance, with plans for a new production line expected to yield 50 tons annually [1]. Valuation Metrics - The projected P/E ratios for the company are 49.8, 35.9, and 28.0 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation outlook as earnings grow [4]. - The gross margin is expected to improve from 38.1% in 2022 to 43.9% by 2026, reflecting operational efficiencies and product mix enhancements [4].