The global chemical mechanical polishing fluid and integrated circuit field photoresist remover market capacity is only about 1.5 billion US dollars, how can Anji Technology break the business bottleneck and achieve steady growth in performance?
It is considered to be “China’s Nasdaq”. Since the official transaction, the science and technology board has received much attention from all. Today, the official transaction of the science and technology board has been full moon. Some people think that in the past month, this is a new wealth-producing and distributing center. On the first day, it was “born” 125 billionaires; some people think that this is a test field for innovation in China’s securities market. It is exerting a subtle influence on startup companies, VCs, and PE institutions in the primary market.
But there is no doubt that in the long run, it is more likely to be the touchstone of the value of hard technology companies. Therefore, at this time node, we launched the “Overview of the Board” series, hoping to bring readers to quickly understand the company.
This article will lead you to understand Anji Technology, as a representative of the deep-seated semiconductor materials (chemical mechanical polishing fluid and photoresist remover), Anji Technology, on July 22, 2019, in the board After the listing, the stock price once rose to 243.2 yuan, an increase of more than 520%, Chengke created the largest increase, the highest peak of the stock price, and then the stock price experienced a high decline. As of 11:10 on September 5, 2019, Anji Technology’s share price was 157.31 yuan, and the PE multiple was 141.22.
Company Profile and Growth History
Anji Microelectronics Technology (Shanghai) Co., Ltd. (hereinafter referred to as Anji Technology) was formerly known as Anji Limited (established on February 7, 2006). In July 2017, the overall change of Anji Limited Established a company limited by shares. Anji Technology’s main business is the research and development and industrialization of key semiconductor materials. The current products include different series of chemical mechanical polishing liquids and photoresist removers. The products are mainly used in integrated circuit manufacturing and advanced packaging.
Anji Technology was listed on July 22, 2019. As of August 30, 2019, Anji Technology’s share price was 141.45 yuan.
The following is an introduction to the company’s two main products.
Chemical Mechanical Polishing Liquid
According to different polishing objects, the company’s chemical mechanical polishing fluid is divided into copper and copper barrier series and other series of products. Among them, the copper and copper barrier layer of chemical mechanical polishing liquid is mainly used in the manufacture of advanced logic chips and memory chips, which is the main revenue source of Anji Technology. The following picture shows the company’s product revenue distribution in 2016-2018. It can be seen that the main business revenue accounts for more than 99% of the total revenue, of which chemical mechanical polishing liquid accounts for more than 80% of the total revenue, while copper and copper. The barrier layer accounted for 76.42%, 74.99%, and 66.32% of the chemical mechanical polishing liquid revenue. The main reason for the decline is the average of the copper and copper barrier series in 2018.The unit price of sales decreased by 4.75%.
Product revenue share
At present, the company has completed the research and development and industrialization of different series of chemical mechanical polishing liquid products such as copper and copper barrier layers, and has completely independent property rights. With the continuous evolution of technology nodes, the types and usage of copper polishing fluids have increased, and the corresponding product life cycle generated after each generation of technology nodes is longer than 20 years. From the production capacity of the process node, the process capacity of 28nm or more in 2018 still accounts for 90% of the global total capacity. Therefore, the risk of rapid iteration of copper polishing fluid is small, and the market bottleneck is not obvious in the future.
Photoresist Remover
According to the application field of photoresist downstream, the company’s photoresist remover includes integrated circuit manufacturing, wafer level packaging, LED/OLED and other products. In 2016-2018, the company’s photoresist remover revenues were 0.19 billion yuan, 0.23 billion yuan, and 42 million yuan, respectively. The increase was mainly due to sales growth.
Company’s financial data and analysis, the company’s risks
In 2016-2018, Anji Technology’s annual revenue was 190 million yuan, 230 million yuan, and 240 million yuan. In 2017 and 2018, the growth rate was 18.2% and 6.64% respectively. The reason for the slowdown in revenue growth in 2018 is mainly due to the copper and copper barrier products for the main business revenue sources. Anji Technology has reduced the price of products that have been stable for many years to maintain the company’s product advantages. The average customer in 2018 The unit price has been reduced by 4.75%. In 2016-2018, the company’s net profit grew steadily, with 0.37 billion yuan, 39 million yuan and 45 million yuan respectively.
Anji Technology Revenue
The current risks faced by Anji Technology are mainly due to the single product structure and limited market capacity.
In 2016-2018, the company’s core technology products chemical mechanical polishing fluid and photoresist remover revenue accounted for 99.62%, 99.54, 99.75% of the total revenue, the product structure is single.
The current top five customers are leading global or domestic integrated circuit manufacturers, including SMIC, TSMC, Yangtze River Storage, China Resources Microelectronics, and Hua Hong Hongli. In 2016-2018, the sales of the top five customers of Anji Technology accounted for 92.70%, 90.01% and 84.03% of the total sales respectively. Among them, the company’s sales to SMIC’s subsidiaries accounted for about 60%. Once the volume of major customer purchases declines, the company’s revenue will be seriously affected.
The prospectus shows that the global market for chemical mechanical polishing fluids and integrated circuit photoresist removers has a limited market capacity of only about $1.5 billion. In 2016, 2017 and 2018, the global market for chemical mechanical polishing fluids was US$1.1 billion, US$1.2 billion and US$1.27 billion, respectively. The extension of the semiconductor materials industry chain requires a long time and more resources.
Company fundraising purposes
The total fundraising amount of the company is 303.1 million yuan, including investment in science and technology innovation, including CMP polishing liquid production line expansion project, Anji integrated circuit material base project, integrated circuit material research and development center construction project, investment The proportion is relatively large, accounting for 93.4% of the total amount of funds raised.
According to Cabot Microelectronics, the global market for CMP polishing materials is US$2.01 billion in 2018, of which the market for polishing fluids and polishing pads is US$1.27 billion and US$740 million respectively. The global market for CMP polishing materials is expected to be 2017-2020. The compound growth rate of scale is 6%. In addition, China Electronics News, the size of China’s semiconductor materials market in 2018 is 8.5 billion US dollars.
Chemical mechanical polishing fluids and photoresist removers are characterized by high barriers to entry and long certification times. Once they become qualified suppliers of downstream integrated circuit manufacturing and packaging companies, they can achieve stable supply. Long-term relationship. This puts high demands on the company’s R&D innovation capability, technical level and production process.
Fundraising needs
Other companies on the track
At present, the global semiconductor materials industry is still dominated by the United States, Japan and other manufacturers, and there is still a big gap between domestic semiconductor materials companies and overseas materials companies.
The main product of Anji Technology’s chemical mechanical polishing fluid belongs to CMP polishing materials in semiconductor wafer manufacturing materials. At present, it is unable to obtain public information such as market space and market share in domestic market segments.
The global chemical mechanical polishing fluid market has long been monopolized by US and Japanese companies, accounting for more than 90% of the global market share, including Cabot Microelectronics in the United States (established in 1999, listed in April 2000, as of August 30, 2019) :00 stock price is 124.65 US dollars), Versum (established in 2015, merged with Merck KGaA in April 2019, financing amounted to 6.5 billion US dollars.) and Japan’s Fujimi (established in 1953, as of September 2, 2019, 9:50) The stock price is 2384 yen) and so on. Among them, Cabot Microelectronics has the highest market share, but has dropped from 80% in 2000 to about 35% in 2017. This indicates that the global polishing fluid market is diversifying and the local self-sufficiency rate is increasing.