On the evening of March 25, Novoray released its 2023 annual performance report. The company intends to distribute a cash dividend of 5 yuan to all shareholders for every 10 shares, and the company still decides to pay cash dividends in the case of poor performance, which reflects the importance of shareholder returns.
The main products of NOVORAY are micron-level and sub-micron-level angular powders processed by advanced grinding technology, micron-level spherical inorganic powders processed by flame melting method, submicron-level spherical particles processed by high-temperature oxidation method and liquid-phase method, various ultra-fine particles after surface treatment, functional particles manufactured by various methods, and slurry products developed to solve particle dispersion.
The products are widely used in epoxy molding materials (EMC), liquid molding materials (LMC) and underfill materials for chip packaging, copper clad laminates (CCL) for printed circuit substrates, laminated adhesives, thermal interface materials (TIM), adhesives for solar photovoltaics, building adhesives for environmental protection and energy saving, honeycomb ceramic carriers, as well as UHV electrical insulation products, 3D printing materials, dental materials and other emerging businesses.
Lower non-operating income weighed on net profit
In 2023, the operating income will be about 712 million yuan, an increase of 7.51% year-on-year. In the face of the business environment such as weak global end market demand in the first half of the year and steady recovery of downstream demand in the second half of the year, the company actively promoted the transformation and upgrading of product structure, and the proportion of high-end products increased. Compared to last year, the operating income increased.
Figure: 2023 Novoray New Materials Annual Report
Novoray New Materials will deduct non-net profit of 150 million yuan in 2023, which is almost unchanged compared with 2022.
In 2023, the non-operating income will be 23.72 million yuan, a year-on-year decrease of 65%, and the net profit will be about 174 million yuan, a year-on-year decrease of 7.57%.
The market is vast and there are opportunities
The process of chip manufacturing is very complex and requires multiple delicate manufacturing steps. In these links, new material technology plays a crucial role.
First of all, new material technology can provide better quality manufacturing materials. In chip manufacturing, the quality of the material directly affects the performance and reliability of the chip. Through continuous research and development and improvement of material properties, new material technology provides better and more reliable manufacturing materials for chip manufacturing, which greatly improves the performance and reliability of chips. Second, new material technology can improve the efficiency of chip manufacturing. In chip manufacturing, manufacturing efficiency directly affects production costs and time to market. The development of new material technology can make manufacturing materials more efficient, which in turn can improve the efficiency of chip manufacturing. At the same time, the development of new material technology can also improve the accuracy and stability of chip manufacturing, further improving the quality and reliability of chips.
Advanced packaging technology has become a key technology to break through the current bottleneck by increasing the total number of I/O, improving transmission efficiency, and improving the overall performance of the chip through system integration. With the continuous development of advanced packaging technologies and processes such as Chiplet and HBM, higher requirements have been put forward for the packaging materials required for packaging links at all levels, and the packaging materials industry has ushered in new development opportunities.
According to Yole data, the global advanced packaging market size was about $44.3 billion in 2022 and is expected to reach $78.6 billion in 2028, with a CAGR of 10.6% from 2022 to 2028, much higher than the 3.2% of traditional packaging. According to SEMI statistics, the global packaging materials market reached $26.1 billion in 2022 and is expected to reach $29.8 billion in 2027, with a CAGR of 2.6%
Continental has developed rapidly in the field of semiconductor packaging and testing, with a market share of more than 20% in the world, and has many first-class enterprises and advanced technologies. The development of semiconductor packaging and testing puts forward higher requirements for materials. As an important material manufacturer in the field of packaging and testing in mainland China, Novoray has great development opportunities in the face of such a large market space.
The cumulative R&D investment was 47.4 million yuan, a year-on-year increase of 23.13%, and the R&D investment accounted for 6.66% of the operating income, and 13 intellectual property rights were obtained. The R&D direction of NOVORAY's products is in line with market trends and market demand, and the R&D results have been recognized by industry customers and enhanced the company's competitiveness.
Market share and competitive position
Novoray has an excellent market share and competitive position in the semiconductor industry. First of all, Novoray is considered to be the leading enterprise of electronic grade silicon powder in China, with an annual output of up to 100,000 tons, and its market share ranks first in the country and in the forefront of the world. This shows that Novoray has significant market influence and leadership in the field of electronic grade silicon powder.
In addition, NOVORAY's technology leadership and platform-based development strategy also support its competitive position in the semiconductor industry. Relying on the barriers of spherical technology, the company continues to focus on the research and development and production of powder materials, and is committed to building an influential powder material platform. This technology-leading and platform-based development strategy helps NOVORAY to maintain its leading position in the fierce market competition.
Although most of the global spherical silicon powder market is occupied by Japanese companies, among which Japan's Yaduma monopolizes the spherical silicon powder market below 1 μm, Novoray has surpassed many parameters of similar foreign manufacturers through the high performance and high nodularization rate of its products, showing its strong competitiveness.
Novoray has a very strong market share and competitive position in the semiconductor industry. The company not only occupies a leading position in the domestic market, but also has significant influence and competitiveness in the global market. Through long-term technology accumulation and platform-based development strategy, Novoray has successfully built its leading edge in the semiconductor industry