20220620-招银国际-万业企业-600641.SH-Corp_Day_Takeaways_Positive_outlook_on__1+N__product_platform__4页_614kb

Wanye Enterprises (600641 CH) Summary

Core Content Overview

Wanye Enterprises, listed on the Shanghai Stock Exchange with ticker 600641 CH, is a key player in the Chinese semiconductor equipment industry. During the Technology Corporate Day, management provided a positive outlook on the company's growth prospects, emphasizing its "1+N" product platform strategy and the strong demand from domestic semiconductor equipment markets.

Key Highlights

Product Platform and Market Strategy

• "1+N" Product Platform: The company's dual focus on ion implanters (Kaishitong) and front-end equipment (Jiaxin Semiconductor) provides a flexible and comprehensive solution for customers.
• Kaishitong: A leading domestic ion implanter manufacturer, specializing in low-energy large beam and high-energy ion implanters.
• Jiaxin Semiconductor: Offers a range of front-end equipment, including etching, film deposition, rapid heat treatment, annealing, and cleaning systems.
• Order Visibility: Management expects strong order visibility in 2023, with significant orders already secured in 1Q22, including 12-inch low-energy large beam ion implanters and ultra-low temperature ion implanters.
• Future Output Targets: Jiaxin Semiconductor is expected to produce 2,450 new front-end equipment units annually (95%+ of total equipment) and 50 re-manufactured units.

Growth Potential

• The "1+N" strategy is anticipated to provide long-term growth opportunities and help the company gain more market share in the front-end equipment market.
• Management is optimistic about the booming demand from domestic semiconductor equipment, driven by localization efforts and rapid capacity expansion in domestic foundries.

Financial Performance (YE 31 Dec)

Current Stock Information

• Current Price: RMB18.18
• Market Cap. (HK$mn): 17,415
• Avg. 3mths t/o (HK$mn): 247.51
• 52W High/Low (HK$): 39.69 / 13.80
• Total Issued Shares (mn): 958

Shareholding Structure

• Shanghai Pudong Tech: 28.44%
• SH Sanlin Wanye Enterprise: 11.13%
• National Integrated Circuit Industry Investment Fund: 5.07%

Share Performance

Analyst Certification

• The research analyst certifies that all views expressed reflect personal opinions and that compensation is not tied to specific views in the report.
• No trading or dealings in the stock covered within 30 days before the report was issued, and no plans to do so within 3 business days after.

CMBIGM Ratings

• BUY: Potential return of over 15% over next 12 months.
• HOLD: Potential return of +15% to -10% over next 12 months.
• SELL: Potential loss of over 10% over next 12 months.
• NOT RATED: Stock is not rated by CMBIGM.

Industry Outlook

• OUTPERFORM: Industry is expected to outperform the relevant broad market benchmark over the next 12 months.
• MARKET-PERFORM: Industry is expected to perform in-line with the relevant broad market benchmark.
• UNDERPERFORM: Industry is expected to underperform the relevant broad market benchmark.

Disclaimer

• This report is for informational purposes only and does not constitute investment advice.
• The information is based on publicly available data and is not guaranteed for accuracy or completeness.
• CMBIGM does not assume responsibility for any reliance on the information provided.
• The report may be subject to change without notice and may not be reproduced or distributed without prior written consent.

Legal and Regulatory Information

• Hong Kong: CMBIGM is a subsidiary of China Merchants Bank.
• United Kingdom: The report is only provided to certain categories of investors as defined by the Financial Services and Markets Act 2000.
• United States: CMBIGM is not a registered broker-dealer in the U.S. and the report is only for "major US institutional investors".
• Singapore: The report is distributed by CMBISG, an Exempt Financial Adviser regulated by the Monetary Authority of Singapore.