Shengjian Environment, a supplier of BOE/CSOT and others, hit the daily limit at the opening, and went public today

 On April 7, Shanghai Shengjian Environmental Systems Technology Co., Ltd. (hereinafter referred to as the "Company") was listed on the Shanghai Stock Exchange today. The company's stock code is 603324, the issue price is 19.87 yuan per share, and the issue price-earnings ratio is 22.99 times. As the "first A-share pan-semiconductor process waste gas treatment stock", Shengjian Environment has been recognized by the market and directly hit the daily limit after opening.

Semiconductors are the cornerstone of information technology and are also an industry that the country focuses on supporting under the current environment. Shengjian Environment, which started out as a manufacturer of ventilation ducts, has also gained the favor of many leading domestic pan-semiconductor companies after years of planning pan-semiconductor process waste gas treatment.

At present, Shengjian Environment's main target customers are pan-semiconductor industry companies, among which optoelectronic display companies are particularly important to the company. They include BOE, Huaxing Optoelectronics, Tianma Microelectronics, Visionox, China Electronics Panda, Truly Optoelectronics, HKC Optoelectronics, Everdisplay, Royole Display and other domestic optoelectronic display companies. According to Shengjian Environment's prospectus, in 2018, the world's top ten panel companies accounted for more than 90% of the market share in terms of shipments.

It is worth mentioning that among the top ten optoelectronic display companies, five are from mainland China, with BOE, CSOT, HKC, CEC Panda and Rainbow Technology ranking 1st, 5th, 7th, 9th and 10th respectively. It is worth mentioning that four of the above companies are clients of Shengjian Environment.

It is understood that Shengjian Environment is in a leading position in the optoelectronic display waste gas treatment industry and has a high market share. Some of its landmark projects include Chengdu BOE 6th generation line, Fuzhou BOE 8.5th generation line, Hefei BOE 10.5th generation line, Shenzhen Huaxing 11th generation line, etc.

In addition to the optoelectronic display industry, Shengjian Environment also has some customers in the semiconductor industry chain, including IDM manufacturer Silan Microelectronics, semiconductor equipment manufacturer North Huachuang, and semiconductor manufacturers Wuhan Xinxin, SMIC, and Huahong Semiconductor.

In recent years, with the rapid development of the domestic pan-semiconductor industry, Shengjian Environment's performance has also been very good. The company's operating income increased from 517 million yuan in 2017 to 938 million yuan at the end of 2020, an increase of more than 80% in three years. In this process, Shengjian Environment's bargaining power and profitability have also increased significantly. The company's comprehensive gross profit margin increased from 25.19% in 2017 to 30.61% in 2019. Although affected by the epidemic, the company's gross profit margin declined in the first half of 2020, but it was still higher than the level in 2017. Shengjian Environment's net profit also increased significantly from 2017 to 2020, from 23 million yuan to 122 million yuan, an increase of more than 4 times.