The profitability of China's leading high-purity sputtering target company NBJF Electronic Materials Technology Group has improved significantly.
On July 14, NBJF released the first half of 2020 performance forecast. It is expected that the net profit in the first half of the year will increase by 170%-200% year-on-year, far exceeding the previously expected 50%-80% growth rate.
NBJF's main business is high-purity sputtering targets, which are used in the fields of semiconductors, flat panel displays and solar cells. In recent years, it has continuously invested in research and development. The company’s 300mm wafer Al, Ti, Ta, Cu and other target products have been used in batches in semiconductor chip 90-7nm technology nodes, breaking the international monopoly.
In addition to its own research and development, NBJF plans to extend its industrial chain through mergers and acquisitions. The company is planning to expand the acquisition of 1.461 billion yuan into the field of magnetron sputtering targets. If the acquisition is completed, the company will optimize the product structure, and the profitability and overall competitiveness will be significantly improved.
The net profit of the upward revision is expected to increase by 170%
The performance forecast shows that NBJF achieved operating income of about 534 million yuan in the first half of 2020, an increase of 53.76% over the same period of the previous year, and net profit attributable to shareholders of listed companies was 37.233 million yuan-41.397 million yuan, an increase of 170%-200 compared with the same period of the previous year. %.
NBJF's main business is the development, production and sales of high-purity sputtering targets. Its main products are various high-purity sputtering targets, including aluminum targets, titanium targets, tantalum targets, tungsten-titanium targets, etc. The company's products are mainly used in Semiconductor (mainly in the field of VLSI), flat panel displays and solar cells.
NBJF has mastered the core technology in the production of high-purity metals and sputtering targets, forming a complete business process including grain orientation control, material welding, precision machining, product testing, cleaning and packaging, etc., breaking the domestic high-purity The sputtering target basically relies on the situation of import, which fills the technical gap of similar domestic products.
NBJF's ultra-high-purity metal sputtering target products have been used in the advanced manufacturing process of world-renowned semiconductor manufacturers, becoming SMIC, TSMC, Global Foundry, STMicroelectronics, Toshiba (sales through integrated trading companies), Hynix , BOE, SunPower and other well-known manufacturers of high-purity sputtering target suppliers.
In 2019, the global target market scale is approximately US$17.073 billion. Overseas giants basically monopolize the global target market, and there is huge room for import substitution.
The domestic substitution of the Chinese semiconductor industry continues to advance, and the performance of NBJF, which is the leader of China's sputtering targets, also continues to rise. The financial report shows that Jiangfeng Electronics' revenue has been growing rapidly for 7 years, from 126 million yuan in 2012 to 825 million yuan in 2019, with an annual growth rate of 30.79%; the net profit increased from 7.533 million yuan to 64.186 million yuan, also achieved a substantial increase.
NBJF is actively advancing the domestic autonomy of key parts of the machine. It has made strategic layouts in PVD (Physical Vapor Deposition) and CMP (Chemical Mechanical Flattening), and mass production orders have been obtained for the retaining ring and polishing pad at the client. This is also the driving force behind the company's growing performance.
At the same time, NBJF is constantly accelerating research and development. Last year, R&D expenses were 59.724 million yuan, accounting for 7.24% of the company's operating income, an increase of 28.27% over the previous year.
After a large amount of R&D investment, the company`s 300mm wafer Al, Ti, Ta, Cu and other target products have been used in batches in semiconductor chip 90-7nm technology nodes, and 5nm technology node products have also entered the verification stage. Among them, tantalum targets and rings have been mass-produced in TSMC 7nm chips, which promotes the company's application in advanced semiconductor manufacturing processes.
The main products of the company expected to be acquired are magnetron sputtering coating equipment and magnetron sputtering targets. Soleras' magnetron sputtering targets mainly include silicon compound targets, titanium compound targets, zinc compound targets, lithium targets, zinc tin targets Wait. Products and services are mainly used in the physical vapor deposition process in the manufacturing process of energy-saving glass, consumer electronic window cover glass, and thin-film solar cells, for the preparation of nano-thin film materials. The final application areas of products are mainly building materials, automobiles, consumer electronics and renewable energy industries.
In recent years, due to the strong demand in downstream markets such as electrochromic glass, Low-E glass and emerging consumer electronic devices, especially the rapid development of electrochromic glass and its applications. NBJF increases the type of magnetron sputtering target material on the basis of the original product, and extends to the magnetron sputtering coating equipment manufacturing industry, optimizes the product structure of listed companies, and will continue to increase profits.