Northern Huachuang (002371): 18Q4 Microelectronics Revenue Increases, Localized Equipment Welcomes Spring
Investment highlights: North China Huachuang announced its 2018 annual report, and its performance was in line with market expectations.
The company achieved revenue of 33 in 18 years.
24 ppm, an increase of 49 in ten years.
53%, with an 18-year average gross margin of 38.
38%, compared to 17 years and 36 years.
59% gross margin rose by 1.
79 units, operating profit realized 3.
34 ppm, an increase of 70 in ten years.
26%, net profit attributable to mother is 2.
340,000 yuan, an increase of 86 in ten years.
05%.
In the fourth quarter alone, it achieved revenue of 12.
23 ppm, an increase of 81 in ten years.
64%, an increase of 73 from the previous quarter.
09%.
In the fourth quarter alone, net profit attributable to mothers was zero.
6.5 billion, an annual increase of 43.
44%, up 31 from the previous quarter.
02%.
The company’s revenue structure is significant. Company orders are gradually being fulfilled.
It can be seen from the split of the company and its subsidiaries that the subsidiary North Microelectronics realized revenue in 201820.
01 trillion, of which 18H2 achieved 12.
82 trillion, 18H1 achieved 7.
19 trillion, 17H2 realized income4.
98 ppm, a year-on-year increase.
The fundamental reason is that the company’s equipment is accelerated through localization, and products are continuously cashed to downstream wafer fabs, chip makers and other customers to achieve faster performance cashing.
In terms of income by region, East China and Central China achieved revenue of 15%.
9.6 billion, an annual increase of 60 in 17 years.
66%, the first is the time period when Yangtze River Storage started to enter the expansion line in the second half of 18, which has a lot of powerful pulling effect on the orders of related companies.
The market space is sufficient, and technological breakthrough + core customer verification is the key.
It is assumed that the company’s production capacity can meet the demand during the forecast period, and that the downstream demand space is sufficient to meet the company’s high-speed growth needs in the next 10 years.
Axial expansion with equipment cost ratio. The domestic compressor market space will be at least 1000 microns in 2019-2021, with total deposition equipment and etching equipment of more than $ 100 billion, and surface cleaning equipment of 6.6 billion yuan.
North China Huachuang faces a 100 billion-level market with sufficient market space.
Lithography machines account for more than 40% of equipment procurement costs. They are the core equipment of semiconductor manufacturing. Only when the technology meets the needs of core customers and undergoes repeated verification can the company realize its performance on the income statement.
At the current stage, only TSMC has successfully produced 7nm chips in large quantities. Designers including Apple, Hisilicon and other chips have been monopolized by TSMC. It is expected that domestic SMICs will trial-produce 14nm chips in the second quarter of 19th.Only when you enter similar core customers will you continue to cash in on your income statement and income statement.
We expect orders for the company’s core products to increase gradually, with gross margins in a slow upward path.
The company’s semiconductor equipment products have gross margins of 40 from 16 years.
88% fell to 36 in 17 years.59%, the gross profit margin 18 years ago rose slightly to 38.
38%. It is expected that by the year 1921, the purchase volume of domestic equipment will increase, and higher R & D expenditures will ensure that the company’s product competitiveness remains the same, and the decline in gross profit margin will slowly return to 38.
About 5%, it is predicted that the company’s gross profit margin will remain at the current level in the future, with the downstream wafer fabs maintaining relatively high capital expenditures.
We maintain the “overweight” rating.
We raise our 2019 net profit forecast from 2.
91 ppm to 3.
6.3 billion, raised 2020 net profit forecast from 4.
31 ppm to 6.
0.6 billion, plus net profit forecast for 2021.
64 ppm, the current sustainable corresponding PE for 2019-2021 is 81X, 48X and 34X, maintaining the “overweight” level.
Risk reminders: slowdown of capital expenditure 杭州夜生活网 by downstream wafer manufacturers and intensified competition.