①Looking at a single quarter, the net income and non-recurring net income of the company in 2024Q2 both reached a historical high; ②The semiconductor market demand is picking up, the company is seizing industry development opportunities, overall business revenue is growing year-on-year, product structure is further optimized, the proportion of high-end products is increasing, and profits are growing year-on-year.
On August 26th, the Science and Technology Innovation Board Daily (Reporter Wu Xuguang) reported on the evening of August 25th that Novoray Corporation, the leading company in silicon micro powder, disclosed its 2024 semi-annual report.
In the first half of 2024, Novoray Corporation achieved a total operating income of 0.443 billion yuan, a year-on-year increase of 41.15%; net profit attributable to the parent company was 0.117 billion yuan, a year-on-year increase of 60.86%; non-recurring net profit attributable to the parent company was 0.106 billion yuan, a year-on-year increase of 70.32%; the net cash flow generated from operating activities was 0.1 billion yuan, a year-on-year decrease of 9.84%.
Looking at a single quarter, the net income and non-recurring net income of the company in 2024Q2 both reached a historical high.
In the second quarter, Novoray Corporation achieved a net profit attributable to the parent company of 0.066 billion yuan, an increase of 27.36% quarter-on-quarter; non-recurring net profit attributable to the parent company was 0.06 billion yuan, an increase of 32.02% quarter-on-quarter.
Regarding performance changes, Novoray Corporation stated that during the reporting period, with the semiconductor market demand picking up, the company seized opportunities for industry development, resulting in a year-on-year growth in overall business revenue, further optimization of the product structure, an increase in the proportion of high-end products, and a year-on-year growth in profits.
Novoray Corporation's main business involves the research and development, manufacturing, and sales of products in the inorganic filler and granular carrier industry. The company's silicon micropowder products are mainly divided into angular silicon micropowder and spherical silicon micropowder, including crystalline silicon micropowder, fused silicon micropowder, spherical silicon micropowder, spherical aluminum oxide powder, and powder materials such as nitrides, used in areas such as epoxy sealants for chip packaging, electronic circuit boards, thermal interface materials, special honeycomb ceramic carriers, 3D printing materials, and other fields.
Novoray Corporation stated that during the reporting period, the company focused on advanced technologies in downstream applications such as high-end chips (AI, 5G, HPC, etc.) packaging, heterogeneous integration advanced packaging (Chiplet, HBM, etc.), new generation high-frequency high-speed copper-clad laminates (M7, M8, etc.), high thermal conductivity interface materials for new energy vehicles, and introduced a variety of specifications, low CUT points, surface modification, Lowα micrometer/sub-micrometer spherical silicon powders, low loss for high-frequency high-speed copper-clad laminates, micrometer/sub-micrometer spherical aluminum oxide powders for high thermal conductivity in new energy vehicle applications.
According to statistics from the Ministry of Industry and Information Technology (MIIT), from January to May this year, the value added of China's electronic information manufacturing industry above designated size increased by 13.8% year-on-year; the emergence of AI servers has driven the rebound in PCB demand. TrendForce predicts that the demand for HBM in 2024 will grow by nearly 200%, and is expected to double again in 2025.
In response to the market demand for high-frequency high-speed copper-clad laminates downstream, Novoray Corporation stated during institutional surveys in April this year that the increasing demand for HPC, AI, and 5G communication has driven the development of the high-frequency high-speed copper-clad laminates field, especially in the high-speed copper-clad laminates sector. The demand for copper-clad laminates above M6 is accelerating.
However, some market analysts believe that in the domestic upstream silicon powder industry for advanced packaging, there are many small and medium-sized enterprises. Driven by industrial policies, with the continuous expansion of market demand, more capital may enter the silicon powder industry in the future. Novoray Corporation may face more intense market competition. Intensified competition may lead to a risk of declining overall industry profitability.
The Science and Technology Innovation Board Daily noted that against the backdrop of increased market demand, during the reporting period, Novoray Corporation added two expansion projects, including the construction of electronic grade functional powder materials for integrated circuit projects and the construction of a production line for ultrafine spherical powder materials for advanced integrated circuit projects.
Regarding the progress of the construction of electronic grade functional powder materials for integrated circuits project, according to Lianyungang News in July, the main structure of the project has been completed. Material commissioning is expected in August, with completion and production expected in December, creating an annual production capacity of 0.0252 million tons of electronic grade functional powder materials.
In other project progress, according to the company's semi-annual report, Novoray Corporation's high-performance substrate with high dielectric low loss spherical titanium dioxide development project, aluminum nitride development project for thermal interface materials, boron nitride development project for thermal interface materials, and key technology R&D project for submicron spherical silicon powders for advanced packaging have entered the engineering stage; the ultra-low loss high-speed substrate with spherical silicon dioxide development project has been industrialized and completed.