The domestic replacement of photoresist is going up, and the incremental era is about to open

A-shares have been running for 30 years, and they have ushered in special judicial supervision. It can be seen that the face is a bit big. In the future, private placement violations will be a legal issue~

Such a big effort, the direct benefit is the accelerated maturity of A shares!

In the past, A-shares were a mixed bag of capital. After being regulated, the interests of retail investors have been guaranteed, and large institutions will take more initiative.

Firmly embracing institutions is the best way out for retail investors.

The investment direction of super funds is the main theme of the stock market, and through the emotional indicators of institutional research, we can see the level of institutional interest in companies.

Many friends have been asking me what is a quantitative index, so here it is!

We will quantitatively evaluate the companies that are surveyed by institutions every day through a number of indicators that reflect the sentiment of the institutions, and select 5-10 companies with the highest ratings.

Today, the first phase of quantitative results will be released on the public account for free, and details of the sentiment of specific companies and institutions will be attached. You can get it for free by replying to “Organization Sentiment” directly in the dialog box.

Note: Institutional sentiment indicators cannot be used as a decision to buy stocks, and we do not recommend stocks, but only provide a quantitative evaluation to select companies with a high degree of institutional sentiment interest.

Dear friends, you can make stock decisions based on quantitative analysis and your own judgment on the company!

Speaking of today’s analysis, it is Red Avenue’s new material, which was surveyed by 120 institutions in June.

What kind of company is Red Avenue New Materials?

In fact, before catching up with this year’s chip fever, the main products of Red Avenue New Material’s production business are high-tech products serving the tire and rubber industry.

Mainly phenolic resins for rubber, including tackifying resins, reinforcing resins, adhesive resins, etc., are widely used in tire and other rubber products manufacturing industries.

But in 2020, Red Avenue New Materials acquired two companies, and the valuation suddenly got on the helicopter, and it was about to rush to the sky.

In 2020, Nanda Optoelectronics will sell Beijing Kehua, which holds a controlling stake of 3.139 billion yuan. Beijing Kehua is the first domestic manufacturer to mass-produce KrF photoresist. It sounds like an infinite valuation. Why would NTU sell it?

First, because of the insufficient performance of Beijing Kehua, it has been losing money year after year.

Second, Beijing Kehua’s technology is firmly in its own hands, and major shareholders have no chance to obtain core technology.

For these two reasons, Nanda Optoelectronics cut the meat, and Red Cheng New Materials took over.

The pattern of NTU Optoelectronics is still small. Red Avenue New Materials not only became a shareholder, but also directly bought 56% of the equity and became the actual controller.

Red Avenue New Materials also strategically holds shares in Beijing Beixu Electronics, a leader in Display panel photoresist, which was once a subsidiary of BOE and holds more than 40% of the market share of TFT-positive photoresist.

The photoresist field has enormous potential for development, for one simple reason.

1) Domestic substitution of photoresist

The global core shortage is certain, and lithography is the first process of integrated circuits.

The lithography process must use photoresist, which is equivalent to the need for a camera to take pictures. The importance is self-evident.

But now, four of the top five photoresist companies in the world are in Japan. The relationship between Japan and China is like a dilapidated house, which may be bombed by the United States at any time.

A few days ago, Japan’s Shin-Etsu Chemical announced that due to the impact of the Fukushima earthquake and the epidemic, the supply of photoresists to Japan’s local wafer manufacturers was given priority, and the supply to China was stopped, and many small and medium-sized fabs have been stopped.

It is subject to the United States and Japan again!

At this time, domestic substitution must be vigorously promoted. If any country does not master the core technology, its prospects will be blocked.

The lithography machine was mentioned in the article last Friday. At that time, a reader friend who had worked in the field of lithography left a message: Domestic lithography is more than ten years behind foreign countries, which is very pessimistic.

It is this kind of backwardness and inadequacy that promotes the country to vigorously promote the development of lithography. In the future, the field of lithography will only increase investment and research and development. This is a hard logic.

Don’t be lightly bearish on emerging industries. In the recent slump, only new energy has pulled back today, which shows the toughness of the new field.

2) Market stock of photoresist

As the core process of lithography, photoresist will definitely show an upward trend with the replacement of domestic fabs in the future, but the current situation is that the domestic photoresist production is seriously insufficient.

The self-sufficiency rate of g/i line photoresist of 6-inch silicon wafer is 20%, and the self-sufficiency rate of KrF photoresist of 8-inch silicon wafer is less than 5%. And this is only low-end photoresist, high-end ArF and EUV glue is still inexhaustible, completely monopolized by Japan and the Netherlands.

Among the projects currently under construction by Red Avenue New Materials, a project in the photoresist base has 11,000 tons of semiconductor, flat-panel display photoresist and 20,000 tons of related supporting reagent projects. Construction has been successfully started and the project progress is being actively promoted.

A big change in the photoresist field now is that there are more and more participants.

Nanda Optoelectronics gave up Kehua, but there are already a small number of orders for the ArF photoresist developed by itself; Shanghai Xinyang and Jingrui Co., Ltd. directly bought ASML’s lithography machine for the research and development of wet ArF photoresist.

The heat in the field of lithography is inevitable, and the main domestic lithography technologies can keep up, and it is inevitable that the downstream will reflect to the upstream and gradually develop.

The problem now is that the main business of Red Avenue New Materials is still the traditional rubber field, and the development of the lithography field is still fighting for each subsidiary. And I have always been more optimistic about companies with their own core technologies rather than consolidated companies. At this point, Red Avenue New Materials may need to consider the issue of core technologies.

In addition, Red Avenue New Materials has also opened a new field, incubating degradable materials, and it is expected to be put into production in 2022. The benefits brought by this piece are unknown, but for emerging industries, it is very necessary to lay out in advance, and it is better to build a car rack than to make a PPT!

Three final conclusions:

1. The domestic replacement of photoresist is going up, and the incremental era is about to open

2. Without core technology, companies that start from research and development may not be able to compete

3. Whether the company is to be an entrepreneur or a producer, the future path is not clear