Beifang Huachuang (002371): Performance meets expected inventory and construction in progress instructions are good
Investment Highlights Event: The company released the semi-annual report for 2019 on the evening of August 14, among which H1 in 2019 achieved operating income of 16.
55 ppm, an increase of 18 per year.
63%, net profit attributable to mother 1.
29 ppm, an increase of ten years8.
The opinions are as follows: The performance is in line with expectations, and the domestic substitution of semiconductor process equipment by business is steadily advancing.
The company released the semi-annual report for 2019 on the evening of August 14, with operating income of 16.
55 ppm, an 18-year increase.
63%; net profit attributable to mother 1.
29 ppm, an increase of ten years8.
03%; in line with the Air Force’s performance report, including net profit after deduction of 2547.
50,000 yuan, 59 years ago.
69%, mainly government subsidies included in the current profit and loss1.
18 billion last year 0.
6.6 billion increase in impact.
By business: electronic process equipment income12.
47 ppm, an increase of 17 per year.
13%, of which (1) semiconductor process equipment business: etching machines, PVD, CVD, vertical furnaces, cleaning machines, etc. have successively entered domestic 8-inch and 12-inch integrated circuit memory chips, logic chips and specialty chip production lines, some productsEntered the world-class chip production line and advanced packaging production line; (2) Photovoltaic equipment business: Affected by the improvement of the domestic photovoltaic industry boom, photovoltaic cell process equipment and single crystal furnace business increased; (3) LED equipment business: the companyThe growth of LED equipment business was less than expected; the company’s other pan-semiconductor application business and vacuum heat treatment business maintained an overall stable development trend.
In addition, in the electronic component business, due to the increase in downstream demand and the promotion of new products, the overall growth of the component business22.
Looking at the increase in Q2 stocks by quarter, the construction in progress indicates the advancement of investment and investment projects: the company’s single quarter of 2019 Q2 achieved operating income of 9.
4.6 billion, an increase of 11% over the same period, an increase of 33.
6%, Q2 returns to the net profit of the mother is 1.
0.8 billion, a 10-year growth of 4.
2%, the second quarter revenue and performance 无锡桑拿网 growth have improved, we believe that the equipment company due to the issue of the confirmation of the order cycle revenue changes are relatively normal, from a longer perspective, the company’s revenue still maintains a high-speed growth.
Financial perspective: The reference company’s 2019Q2 inventory and accounts payable are 37.
44 and 1.
7.1 billion, an increase of 57% and 88% each year, mainly due to the increase in the company’s on-hand orders leading to increased stocking, and then gradually release cashing growth.
In addition, the construction in progress was 0 in the first half of the year.
9.5 billion, an increase of 94 over the beginning of the year.
02%, mainly due to the company ‘s non-public projects “High-precision Electronic Components Industrialization Base Expansion Project” and “High-end Integrated Circuit Equipment R & D and Industrialization Projects”, two projects have begun to advance.Chip production process technology generation, on the basis of 28 nanometers, to further realize the industrialization of 14 nanometer equipment, to achieve 5/7 nanometer equipment key technology research and development, to ensure long-term competitiveness.
Medium- and long-term prospects for customer technology and other advantages guarantee domestic replacement dividends: According to SEMI and our forecasts, the expansion of domestic wafer fabs in the next three years will drive semiconductor equipment to reach USD 152 billion in 2019, an increasing 78%.
8%, 214 billion yuan in 2020, a year-on-year increase of 40%, 2019-2020 is the critical volume of semiconductor equipment, domestically produced alternatives greet the best growth opportunities.
Among them, North China Chuang’s etching equipment, PVD, diffusion, cleaning machines and other multi-category products will enter the rapid volume phase. We estimate that the annual replacement scale is 1 billion to 2 billion + grade: (1) in terms of etching, etching equipment is localizedThe rate is lower than 15%. The company owns the leading domestic silicon dry etching equipment for integrated circuits, and will benefit from the 12-inch production line demand for integrated circuits such as logic chips, 3D NAND, and DRAM. PVD, Al pad PVD, AlN PVD, TSV PVD and other pitch magnetron sputtering PVD products, of which HardmaskPVD equipment for 28nm / 12 inch wafer production has become SMIC’s baseline equipment; (3) In terms of cleaning machines, the company acquired the United StatesAkrion silicon wafer cleaning equipment company, complete 8-12 inch single wafer cleaning machine product line.
The reorganization of the company’s product line is based on a large number of R & D. In Q1 2019, R & D investment1.
0.6 billion, an annual increase of 204%, mainly invested in 12-inch 14nm process etchers, PVD, ALD and other manufacturing equipment.
Investment suggestion: We are optimistic about Beifanghua Creation as a domestic semiconductor equipment leader in the future of domestic strategic opportunities and growth opportunities, maintaining 2019 and 2020 revenue 46.
2, 65.200 million, net profit attributable to mother 4.
140,000 yuan, PE is 67x, 43x, maintain “Buy” rating.
Risk warning: Technology research and development is less than expected, downstream expansion slows down, and Sino-US trade risks.