Wu Wenji and Wan Wei of China Post Securities Co., Ltd. recently conducted research on Tianyue Advanced and released a research report "Release of the industry's first 12-inch silicon carbide substrate", this report gives a buy rating to Tianyue Advanced, and the current stock price is 50.46 yuan.

Tianyue advanced (688234).

Investment Essentials

Released the industry's first 12-inch silicon carbide substrate, and the wide bandgap semiconductor industry officially entered a new era of ultra-large silicon carbide substrates. The company independently developed a 12-inch super-large size silicon carbide substrate to further expand the area that can be used for chip manufacturing on a single wafer and increase the output of qualified chips. Under the same production conditions. The 12-inch silicon carbide substrate can significantly increase the output, reduce the unit cost, and further improve the economic benefits, providing the possibility for the large-scale application of silicon carbide materials.

The product quality and shipment volume are leading, and it has successfully cut into the supply chain of international manufacturers. As the cornerstone of the third-generation semiconductor industry, silicon carbide substrate materials have entered a period of strategic opportunities driven by the terminal demand for electric vehicles, photovoltaic new energy, energy storage, charging piles, etc., as well as the acceleration of the 800V high-voltage platform for electric vehicles. The company is one of the most comprehensive technology and the most international silicon carbide substrate manufacturers in China, and has realized the batch supply of 8-inch conductive substrates, 6-inch conductive substrates, 6-inch semi-insulating substrates, 4-inch semi-insulating substrates and other products.

The production capacity of the Lingang plant has been steadily increased to ensure the continuous delivery of customer orders. According to Japan's Fuji Economic Statistics, in 2023, the company's market share of conductive silicon carbide substrates has entered the top three in the world. In the first half of 2024, the company's Shanghai Lingang plant has been able to reach a large-scale mass production capacity of 300,000 pieces of conductive substrates per year, and will continue to steadily promote the second phase of production capacity increase of the Lingang plant in the future.

Layout of 8-inch substrate, the first to achieve mass sales of overseas customers. The company has carried out a forward-looking layout on the 8-inch substrate, not only realizing the localization of the 8-inch silicon carbide substrate, but also taking the lead in realizing the batch sales of overseas customers. With the construction of 8-inch wafer factories of international first-line manufacturers entering the stage of successive production, the demand for 8-inch silicon carbide substrates will maintain a growth trend in the future, and the customer verification and sales volume of the company's 8-inch products will continue to expand.

Investment Advice:

We expect the company's net profit attributable to the parent company in 2024-2026 to be 2.0/3.7/560 million yuan, and the first coverage is given a "buy" rating.

Risk Warning:

the risk that technology iteration and R&D investment are less than expected; rising raw material prices; the risk of intensifying the competitive landscape of the industry; international trade friction risk; The increase in production capacity and output was not as expected.

According to the calculation of the research report data released in the past three years, the research team of Huaxin Securities Lv Zhuoyang has studied the stock in depth, with an average forecast accuracy of 76.99% in the past three years, and its forecast attributable net profit in 2024 is 227 million yuan, and the predicted PE is 95.21 based on the current price.

The breakdown of the latest earnings estimates is as follows:

A total of 9 institutions have rated the stock in the last 90 days, 7 have given a buy rating and 2 have an overweight rating. The average institutional price target over the last 90 days is 76.27.

The above content is compiled by Securities Star based on public information and generated by an intelligent algorithm (Network Information Calculation No. 310104345710301240019), and does not constitute investment advice.