Northern Huachuang (002371): High-growth performance of semiconductor equipment domestic substitution accelerated

Northern Huachuang (002371): High-growth performance of semiconductor equipment domestic substitution accelerated

Event: The company released its 2018 annual report on the evening of April 23, of which the total operating income for 2018 was 33.

20 ppm, net profit attributable to shareholders of listed companies.

31 ppm, an increase of 84 in ten years.


The opinions are as follows: The driving performance of electronic process equipment, especially semiconductor equipment, has grown rapidly.

The company announced the 2018 annual report, of which revenue was 33.

2.4 billion, an increase of 49 per year.

53%, performance 2.

34 ppm, in line with Air Force Performance Preview 2.


7.6 billion range.

(1) In terms of quarters, the company’s 18Q4 revenue was 12.

2.3 billion, an increase of 81 every year.

64%, the performance single quarter is 0.

6.5 billion, an increase of 43% over the same period; (2) In terms of business, the revenue of electronic process equipment (about 80% is pan-semiconductor equipment) was 25.

2.1 billion, an increase of 76%, and gross profit margin increased by 1.

52 units; (3) by region, the central and southeast revenue was 15.

9.6 billion, revenue accounted for 48%, exceeding the growth rate of 60%.

In summary, from the perspective of downstream demand, we judge that it is mainly Yangtze River Storage, SMIC, Hua Hong Semiconductor, etc., which expanded the H2 production line in 2018.

From a profit perspective, the overall gross profit margin is 38.

38%, an increase of 1 each year.

79 single, profitable speed asset turnover rate 0.

37 hit a record high, mainly 南京桑拿网 because the company’s product structure, customer structure, scale effect, etc. have gradually entered the growth channel, and the company’s domestic alternatives such as semiconductor equipment have only begun.

Benefits from customer technology and other benefits guarantee domestic flour production expansion bonus: According to SEMI and our forecast, the expansion of domestic mainland wafer fabs in the next three years will drive semiconductor equipment to reach US $ 152 billion in 2019, an increasing 78%.

8%, 2020 is 2140 ppm, an increase of 40%. 2019-2020 is the critical volume of semiconductor equipment. Domestic substitution welcomes the best growth opportunities. Among them, Northern Huachuang’s etching equipment, PVD, diffusion, cleaning machinesMany types of products will enter the rapid volume phase. We 杭州夜网论坛 estimate that the annual replacement scale is more than 1 billion to 2 billion. (1) In terms of etching, the localization rate of etching equipment is less than 15%.Silicon dry etching equipment will benefit from the needs of integrated circuits such as logic chips, 3D NAND, DRAM; (2) In terms of PVD, the company has successfully developed TiNHardmask PVD, Al padd PVD, AlN PVD, TSV PVD plasma magnetic sputteringPVD products, including hard mask PVD equipment for 28nm / 12-inch wafer production, have become SMIC’s baseline equipment; (3) In terms of cleaning machines, the company acquired the American Akrion wafer cleaning equipment company, perfecting 8-12 inchesMonolithic washing machine product line.

The reorganization of the company’s product line is based on a large number of R & D. In 2018, R & D investment8.

7.3 billion, accounting for 26% of revenue, mainly invested in 12-inch 14nm process etching machine, PVD, ALD plasma manufacturing equipment.

It is planned to raise funds to raise 5 / 7nm key semiconductor equipment.

The company plans to increase to the National Integrated Circuit Fund (subscription 9.

US $ 200 million), Beijing Electronic Control (US $ 600 million), Beijing Guorui Fund (US $ 500 million), Beijing Integrated Circuit Fund (0.

800 million US dollars) and other raised funds for “high-end integrated circuit equipment research and development and industrialization projects” (planned 18.

800 million) to carry out the research and development of 5 / 7nm key IC equipment.

Project capacity: Annual production of 30 etching equipment, 30 PVD equipment, 15 single-chip repetitive equipment, 30 ALD equipment, 30 vertical furnace equipment, 30 cleaning equipment, after the project is fully operational, it is expected to reach annual productionThe average sales income is 26 trillion, and the annual average total profit is 5.

400 million, the company’s performance is expected to further improve.

Investment suggestion: We are optimistic about the prospects of process strategy and growth space of Beifang Huachuang as a domestic semiconductor equipment leader in the next few years. It is expected that the revenue in 2019 and 2020 will reach 4.65 billion and the net profit attributable to mothers will be 4.

00, 6.

140,000 yuan, PE is 73x, 47x, maintain “Buy” rating.

Risk warning: Technology research and development is less than expected, downstream expansion slows down, and Sino-US trade risks.