North China Chuang (002371) Quarterly Report Review 2019: Steady Growth in Revenue Increases R & D Investment Leaders Deposits Will Further Consolidate
Matters: The company released the 2019 first quarter report, which reported a merger and achieved operating income7.
08 million yuan, an increase of 30 in ten years.
51%, net profit attributable to mother was 1991.
380,000 yuan, an increase of 29 in ten years.
65%, attributable to non-net profit of -2247.
610,000 yuan, a decrease of 87 per year.
Comment: The revenue has steadily increased, and the R & D expansion has significantly improved. The company has four major business groups: semiconductor equipment, vacuum equipment, new energy lithium battery equipment and precision electronic components, 12-inch etching machines, PVD, ALD, monolithic insulation systems, andIntegrated circuit equipment such as LPCVD has entered mainstream foundries, and has included technology accumulation in the field of integrated circuits. It has targeted the extension of product development in photovoltaics, LEDs, display panels and other fields. Reporting, operating income continued to grow, achieving growth of 30.
51% to 7.
08 trillion, gross margin 44.
88%, up from the previous month.
Expense rate increased by 4.
85pct to 43.
48%, a decrease, the company strengthened cost control and reduced the increase in management expense ratio4.
4pct, budget, the expansion of the company’s sales scale, driving the sales expense ratio to increase slightly.
85pct; At the same time, increase research and development efforts to increase research and development costs by an additional 204.
21% to 1.
06,000 yuan, the R & D expense ratio has increased significantly8.
In addition, the company’s new R & D projects were supported by the government, which reported and received government subsidies of 4,936.
Full orders in hand are expected to support future performance growth to the end of the first quarter of 2019, and the company’s inventory is 34.
850,000 yuan, an increase of 4 over the end of 2018.
70 trillion, advance payment 16.
4.4 billion, an increase of 0 from the end of 2018.
The company has full orders on hand and is expected to form better support for future performance.
Product R & D and customer expansion have been smoothly advanced, and the company’s strength has been increased. The company’s strength has been further strengthened. The company is one of the largest domestic high-end semiconductor process equipment suppliers with the largest product system and the most extensive field.Etching machine, PVD, CVD, oxidation / diffusion furnace, cleaning machine, ALD, etc.
Among them, the 12-inch 90-28 nanometer integrated circuit process equipment has been industrialized, and the 12-inch 14 nanometer integrated circuit process equipment has entered the process verification stage.
The penetration rate of the company’s products in downstream production lines has continued to increase. In addition to SMIC, the company’s equipment has also entered Huali Microelectronics, Yangtze River Storage and other leading domestic production lines.
The company plans to raise and raise US $ 2.1 billion for high-end integrated circuit equipment R & D and industrialization projects and high-precision electronic component industrialization base expansion projects, aiming to gradually improve the layout of advanced process equipment and enhance market competitiveness.
Profit forecast, estimation and investment grade: We maintain our expectation that the company will achieve net profit attributable to its mother from 2019-2021.
75 and 7.
230,000 yuan, EPS 0.
26 and 1.
58 yuan, corresponding to PE 73, 49 and 39 times.The traditional semiconductor equipment industry is still in its growth stage. Consider using the PS method to evaluate, with overseas mature companies AMAT and ASML as comparable companies. PS estimates that the hub is 2-5 times and 5-8 times respectively.High performance growth, given 5-5 in 2021.
5x PS, with a discount rate of 10%, with a target market value of 316 in 2019.
2 ppm, with a target price range of 69.
9 yuan, maintaining the “recommended” level.
Risk warning: The industry demand is lower than expected, the equipment domestication progress is lower than expected, and the equipment verification progress is lower than expected.