AMEC-中微公司：刻蚀持续高增，薄膜开启放量

Investment Rating - The stock investment rating for the company is Buy | Maintain [1] Core Views - The company is a leader in etching equipment, with ICP equipment starting to scale up and moving towards full process coverage. From 2020 to 2023, the revenue from etching equipment grew at an average annual rate of over 50%, reaching RMB 4.7 billion in 2023. In H1 2024, etching equipment revenue was RMB 2.698 billion, up 56.68% YoY, accounting for 78.26% of total revenue. The company's plasma etching equipment has been widely adopted by leading domestic and international customers for advanced logic and memory chip manufacturing, with significant increases in market share for both CCP and ICP etching equipment [12] - MOCVD equipment, initially focused on the blue and green LED market, is expanding into the silicon carbide and gallium nitride-based power device markets. Despite a 49.04% YoY decline in H1 2024 revenue to RMB 152 million due to market fluctuations, the company is actively developing MOCVD equipment for new applications such as Micro-LED and power devices [13] - The company's thin film equipment is starting to scale up, with LPCVD new orders reaching RMB 168 million in H1 2024. The company has multiple new thin film deposition equipment products entering the market, with some already receiving repeat orders. The company's tungsten thin film deposition products cover all tungsten applications in memory devices and have completed validation with several logic and memory customers [14] - The company is significantly increasing R&D efforts, with H1 2024 R&D investment reaching RMB 970 million, up 110.84% YoY. The company is focusing on six categories of equipment and over 20 new equipment developments, aiming to catch up with global leaders in the semiconductor equipment industry [18] - China is expected to maintain annual wafer fab equipment investments of over $30 billion for the next four years, accelerating the localization of semiconductor equipment. The company currently covers about 33% of the integrated circuit equipment market, with plans to expand further through ongoing R&D projects [19] Financial Performance - The company's revenue has grown at an average annual rate of over 35% from 2012 to 2023, with etching and MOCVD equipment driving this growth. In H1 2024, the company achieved revenue of RMB 3.448 billion, up 36.46% YoY, with etching equipment revenue at RMB 2.698 billion, up 56.68% YoY, and MOCVD equipment revenue at RMB 152 million, down 49.04% YoY [35] - The company's net profit attributable to the parent company in 2023 was RMB 1.786 billion, up 52.7% YoY, including a one-time gain of RMB 406 million from the sale of part of its stake in another company. In H1 2024, net profit was RMB 520 million, down 48.48% YoY, mainly due to increased R&D spending [38] - The company's gross margin has been steadily improving, reaching 41.32% in H1 2024, despite a one-time impact from new accounting standards that included RMB 94.78 million in expected product quality assurance losses in the cost of sales [42] Market and Industry Outlook - China is expected to maintain annual wafer fab equipment investments of over$ 30 billion for the next four years, driven by government incentives and policies promoting semiconductor localization. The company is well-positioned to benefit from this trend, with its current coverage of about 33% of the integrated circuit equipment market expected to expand further [19] - The global semiconductor equipment market is projected to reach $95 billion in 2023, with China accounting for 35% of the market. The company's focus on etching, thin film, and metrology equipment aligns with the growing demand for advanced process technologies, which are expected to drive further growth in these segments [19] Product and Technology Development - The company's CCP etching equipment has achieved significant progress, with over 3,600 CCP etching reaction chambers delivered by June 2024. The company is also developing advanced technologies such as ultra-low temperature etching and new etching gases to meet the demands of higher aspect ratio structures [76][81] - The company's ICP etching equipment is rapidly scaling up, with over 700 Primo Nanova reaction chambers in operation by H1 2024. The company is also developing new ICP etching equipment for advanced logic, DRAM, and 3D NAND applications, with several products already in mass production [86][87] - The company's MOCVD equipment continues to lead in the gallium nitride-based MOCVD market, with over 500 chambers delivered by H1 2024. The company is also developing new MOCVD equipment for applications such as Micro-LED and power devices, with several new products in the validation stage [90][91] - The company is actively developing thin film deposition equipment, with 18 new LPCVD-related products in development. The company's tungsten thin film deposition products have been validated by key memory customers and are receiving repeat orders. The company is also developing ALD titanium nitride equipment for advanced memory and logic applications [94][95] R&D and Innovation - The company is significantly increasing its R&D investment, with H1 2024 R&D spending reaching RMB 970 million, up 110.84% YoY. The company is focusing on six categories of equipment and over 20 new equipment developments, aiming to catch up with global leaders in the semiconductor equipment industry [18] - The company has over 20 new equipment development projects in progress, covering advanced logic, memory, power devices, and other emerging fields. The company's R&D efforts are focused on achieving world-class performance in key areas such as high aspect ratio etching, thin film deposition, and advanced packaging [98][99]