鼎龙股份：冉冉升起的半导体材料平台公司-20250226

Investment Rating - The report gives a "Buy" rating for the company with a target price of 37.05 RMB based on a 48x PE valuation for 2025 [4]. Core Views - The company is accelerating its platform layout in the semiconductor materials sector amid the trend of domestic substitution, particularly in polishing pads and liquids, which are seeing significant demand growth due to the recovery of downstream wafer fabs [2][3]. - The traditional printing and copying consumables business is expected to stabilize and recover, with the company positioned as a market leader [3]. Summary by Sections Company Overview - The company, Dinglong Co., primarily operates in traditional printing and copying consumables and semiconductor materials. It aims to become a platform supplier of semiconductor materials in China, with projected revenue of 3.36 billion RMB in 2024, a 26% increase year-on-year [1]. Investment Logic - The domestic substitution of semiconductor materials is gaining momentum, with the company focusing on expanding its platform. The polishing pad and liquid segments are benefiting from increased demand due to the recovery of wafer fab utilization rates [2]. - The company is positioned as a leader in the domestic polishing pad market and is actively expanding its capacity. The semiconductor display materials segment is also expected to grow rapidly, particularly in the AMOLED market [2]. - The company has initiated the trial operation of a high-end wafer photoresist project and is progressing with its advanced packaging materials [2]. Financial Forecast and Valuation - The company is expected to achieve revenues of 3.365 billion RMB, 4.059 billion RMB, and 4.850 billion RMB for 2024, 2025, and 2026, respectively, with net profits projected at 519 million RMB, 724 million RMB, and 1.032 billion RMB [4][7]. - The report anticipates a significant increase in net profit for 2024, with a year-on-year growth of approximately 120.71% to 138.73% [19]. Business Segments - The semiconductor materials segment is projected to generate approximately 1.56 billion RMB in revenue in 2024, reflecting a 79% year-on-year increase, while the printing and copying consumables segment is expected to generate 1.8 billion RMB, a 1% increase [15]. - The company has a strong capacity utilization rate in its semiconductor business, maintaining over 95% utilization in recent periods [23]. Capital Raising Plans - The company plans to issue convertible bonds to raise up to 910 million RMB for projects including a 300-ton photoresist production line and a semiconductor materials base project [1][26].