China Micro Corporation (688012) (AMEC): Etching equipment grows rapidly, thin film equipment advances steadily
The company’s etching equipment has accelerated growth, thin film deposition equipment has steadily advanced, and its performance has entered the fast growth lane.
There are sufficient orders in hand, and ICP will accelerate the volume. 1H22 revenue was 1.972 billion yuan, YoY+47.30%, net profit after deducting non-return to the parent was 441 million yuan, YoY+615.26%. Gross profit margin was 45.36%, an increase of 3.03pcts year-on-year, mainly due to the increase in the gross profit margin of etching equipment. ICP revenue was 4.13 RMB 100 million, a year-on-year increase of +414.1%, CCP revenue was RMB 886 million, and the market share among major customers reached more than 30%. As of June 2022, a total of RMB 3.057 billion of new orders were signed, a year-on-year increase of 61.83%, and the performance in the second half of the year is expected to be Maintain high growth.
Continuous development of new CCP models, significant advantages of dual ICP, rapid growth in the company's etching equipment performance. Develop new CCP, covering logic chips below 5nm and 3D NAND memory chips above 200 layers. Develop new ICP, covering 7nm and below Logic, 17nm and below DRAM and 3D NAND storage, and optimized the development of dual ICP etching equipment.
The MOCVD equipment for Mini LED has been put into production, and the verification of thin-film deposition equipment is steadily advancing.
The company is actively developing uniMAX equipment for Mini LED and Micro LED, The related LPCVD and other thin film deposition equipment has entered the mass production verification stage, and the EPI equipment has entered the prototype manufacturing and debugging stage.
Deducting non-performance greatly increased etching leading endogenous epitaxy to build a flagship platform
The etching business is growing rapidly, and MOCVD has huge potential this year. In 2022H1, the revenue of etching equipment was 1.299 billion yuan, yoy+51.5%, and the gross profit margin reached 46.05%, of which CCP etching equipment was 886 million yuan, yoy+14.0%, and ICP etching equipment was 413 million yuan, yoy+414.1%. New products emerge one after another in the mini LED terminal market, the penetration rate is growing rapidly, and the industry investment is hot. In the first half of the year, the revenue of MOCVD equipment was 241 million yuan, yoy+9.9%, and the gross profit margin reached 35.4%, a year-on-year increase of 4.7%. UniMax has booked more than 180 cavities. This year, the MOCVD business is expected to achieve high growth.
ICP volume growth is strong, product updates and iterations, and multi-domain layout. In 2021, the company will ship 298-chamber CCP and 134-chamber ICP. Since the beginning of 2022, 292 reaction units have been delivered. As of the end of June 2022, the company's equipment has shipped a total of 2,654 reaction units. In addition, the company continues to iterate on products and develop new products:
[Etching] The development of new products is progressing well and will enter the market one after another. 1) Logic: new generation etching equipment, Damascus and other etching processes; 2) 3D NAND: key etching applications with extremely high aspect ratios above 200 layers; 3) By the end of June 2022, Primo Nanoova has successfully delivered more than 220 units Cavity, is developing the next generation of ICP products.
[MOCVD]: 1) MOCVD for GaN-on-Si power devices has been verified on customer production lines; 2) MOCVD for Micro LED and epitaxy equipment for SiC power devices are under development. [CVD]: 1) LPCVD has passed key customer process verification, and is actively promoting mass production verification; 2) ALD is being developed, which can meet the application of metal barrier layers in advanced memory and logic devices, as well as metal gates in advanced logic devices. [EPI]: The silicon-germanium epitaxial growth process for logic, storage and power devices of 28nm and below has entered the stage of prototype manufacturing and debugging.
Vigorously research and development, the per capita income has reached the international advanced level. In the first half of the year, the company invested 350 million yuan in research and development, a year-on-year increase of 20.9%, accounting for 17.6% of revenue. As of the end of June, the number of R&D personnel was 496, accounting for 41.4% of the total number of employees. The annualized revenue per capita in the first half of the year has reached 3.5 million yuan. The company's newly signed orders in 2022H1 increased by 61.8% year-on-year to 3.06 billion yuan. At the end of June, the company's contract debt was 1.59 billion yuan. R&D space will strongly support long-term growth.
Leading semiconductor etching equipment, endogenous epitaxy to build a flagship platform enterprise. The company has successfully built a technical team with creativity and core competitiveness. The continuous upgrade of MOCVD ushered in the inflection point of Mini LED. CCP products cover first-line customers at home and abroad, ICP products are rapidly iterated and increased in volume, and new product lines such as deposition are laid out to build a flagship enterprise of semiconductor equipment.
