Recently, many research institutions have successively announced the rankings of various fields of the global semiconductor market in 2023.
It is worth noting that Nvidia, which ranks first, has a market value almost three times that of TSMC, which ranks second, and has become the first semiconductor company with a market value of $1 trillion and $2 trillion.
You know, from a market capitalization of $1 trillion to $2 trillion, Nvidia took only 8 months, less than half the time it took Apple and Microsoft.
In recent years, many emerging companies also hope to share the dividends of the semiconductor industry, and there are more and more competitors in the semiconductor track, which is just a full recognition of the huge market potential of the semiconductor industry and its core position in the global economy.
So why is the semiconductor industry so attractive?
The semiconductor industry is an indispensable cornerstone of a country's industrial prosperity.
Since 2018, the mainland has begun to vigorously develop the third generation of semiconductors, and the semiconductor industry has become the industry with the most attention, the largest investment and the fastest progress, and is now in a rare period of strategic development opportunities.
In the past two or three years, the entire industrial chain of third-generation semiconductors in China has been in the process of rapid development, and the gap between local supply and demand is shrinking.
In 2022, the size of China's third-generation semiconductor market will reach 11.179 billion yuan, a year-on-year increase of 39.2%, and the compound growth rate from 2018 to 2022 will be 43%, which is an amazing growth rate.
It can be seen that in terms of import substitution of semiconductors in the mainland, breakthroughs have been made in all directions of the domestic industrial chain, followed by the gradual expansion of the quantity.
The industrial chain of the semiconductor industry mainly includes three major links: upstream material and equipment supply, midstream chip design and manufacturing, and downstream terminal applications.
Semiconductor equipment is an important support for the entire semiconductor industry, mainly used to manufacture chips, including wafer manufacturing equipment, wafer packaging and testing equipment, lithography machines, ion implanters, etc., which play a vital role in the quality and output of semiconductor products.
China is the world's largest semiconductor manufacturing equipment market, with a market share of more than 40%, for example, we are familiar with North Huachuang and SMIC are the leading companies in semiconductor equipment.
Wafer processing equipment accounts for the largest proportion of sales in semiconductor equipment, nearly 90%, and semiconductor thin film equipment is one of the key equipment, which is used to deposit various thin film materials on the surface of wafers.
Sputtering targets are the key materials for thin film deposition.
Today, I would like to introduce to you the sputtering target leader that will be purchased on April 25 - Ole New Materials.
So, what is a sputtering target?
In order to ensure the uniformity of the large-area film layer, almost all types of planar display devices will use a large number of sputtering targets to prepare various functional films, and many properties of electronic products such as TVs, computers, and mobile phones are related to sputtering targets.
The sputtering target is generally a metal or compound with high purity, and the corresponding material film can be generated on the surface of the substrate, which can change the electrical conductivity, thermal conductivity, optical and other properties of the raw material, and realize the control and optimization of the device performance.
The working principle is to use arc discharge or ion beam to bombard the surface of the target, release the atoms or molecules inside the target, and deposit them on the surface of the substrate to form a thin film.
As the saying goes, "if you climb high, you will be inferior, and if you go far, you will be self-defeating".
Now the integration of our chips is getting higher and higher, and the performance requirements for sputtering targets are getting higher and higher, and the sputtering targets for semiconductors are the most technically difficult modules in the industry.
However, the field of sputtering targets in mainland China started late, and some leading enterprises in developed countries such as the United States, Japan, and Europe occupied a high market share with their strong financial strength and leading technical level.
However, in the future, with the acceleration of the localization process of semiconductors in mainland China and the rising prosperity of the solar cell market, the demand for high-performance sputtering targets in the downstream market will continue to increase.
It is estimated that the market size will grow to 65.3 billion yuan in 2026, with a compound annual growth rate of 15.0%.
So, what is the performance of Ole New Materials?
From 2021 to 2023, the operating income of Ole New Materials will increase from 382 million yuan to 476 million yuan, with a three-year compound growth rate of 24.63%, and the net profit will fluctuate from 50 million yuan to 49 million yuan in the same period. It can be seen that the overall performance of Ole New Materials is in a state of slow growth.
In addition, from 2021 to 2023, the gross profit margin of Ole New Materials has decreased, from 27.7% to 22.0%, but the decline is not very large.
The decline in gross profit margin is mainly due to the continuous rise in copper prices in recent years, and the cost of copper targets, as the main business of Olale New Materials, has increased accordingly.
In addition, in order to replace imported targets and consolidate the company's market leading position, Ole New Materials took the initiative to reduce the sales unit price. This strategy not only increased the market share of domestic targets, but also led to a decrease in the company's gross profit margin.
However, this situation may be alleviated after the market share of Ole New Materials expands in the future.
Finally, let's take a look at the research and development of Ole New Materials
From 2020 to 2023, the R&D expenses of Ole New Materials will be 16 million, 22 million, 28 million, and 27 million respectively.
On the whole, it is in a slow growth trend, but compared with comparable companies in the same industry, Jiangfeng Electronics, Ashtron, Longhua Technology, and Yingri Technology, R&D accounts for a higher proportion of revenue.
Increased R&D investment is likely to lead to higher levels of productivity and quality. Through R&D investment, the company can introduce more advanced production technologies and processes, so as to improve production efficiency, reduce costs, improve product quality, and enhance market competitiveness.
At present, the company has 128 authorized patents, including 27 invention patents and 101 utility model patents, covering various key technical fields of the company's products.
With its focus on R&D and innovation, Ole New Materials has broken the technical monopoly of major foreign sputtering target companies in related application fields through continuous technical process research and development.
At present, Ola New Materials has passed the product certification of many well-known customers such as BOE, Huaxing Optoelectronics, Huike, etc., and some products have entered the supply chain of well-known solar cell customers such as Yueya Semiconductor and China Building Materials, forming a good reputation in the industry and establishing high customer certification barriers.
summary
In recent years, with the growing demand for smart phones, LCD TVs, tablet computers, etc., coupled with the rapid development of new energy, semiconductor and other industries, the scale of the sputtering target market will continue to expand, and the future development prospects of Ole New Materials are very broad.
With the growing market demand for sputtering targets in the future, the performance of Ole New Materials may also increase. In short, the growth potential of Ole New Materials is still very strong.
The above analysis does not constitute specific investment advice. The stock market is risky, and investors need to be cautious.
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