Photovoltaic industry significantly warmer, crystal growth equipment leader to return to rapid growth
The company is a leading supplier of photovoltaic and semiconductor crystal silicon growth equipment in China, and achieved rapid growth with its first-mover advantages and technical barriers in the field of single crystal furnaces. The business revenue in the first three quarters of 17 years ago was 1.257 billion yuan, up YoY 87.30% net profit attributable to parent company 253 million yuan, an increase of 95.33% over the year is expected to return net profit of 367-428 million yuan, an increase of 80% -110% .Company downstream customers include all except Longji outside the silicon manufacturers Including Central, Jingke, Jing'ao and GCL-Poly. In 2017, the company disclosed orders for photovoltaic equipment exceeding 3 billion yuan, an increase of 439% over the same period of last year.
In addition to photovoltaic single crystal furnace, in the past few years the company has also expanded the cut, grinding, polishing and other equipment, the future will focus on the layout of PV modules and battery-side end of the device, there are a variety of research and test products, the market Space and single crystal furnace quite.
Semiconductor production to China shift, large-size silicon in short supply, domestic equipment usher in spring Domestic semiconductor investment in the national fund blessing surging, according to SEMI expected the world's 62 wafer mills in the world there are 26 will be settled in China. Demand, according to SUMCO forecasts, 300mm silicon demand by 2020 will exceed 7.5 million / month, 200mm silicon will continue to be in short supply state; supply, the supply of silicon oligopoly, the market share of the top five vendors close to 91%, many oligarchs mainly adopt the price-raising strategy, the silicon supply gap continues and the expansion plan is slow to make up for the production gap, the domestic large-scale silicon expansion plans more than 60 billion yuan, pulling crystal furnace domestic technological progress is rapid, the current crystal Sheng 200mm crystal pulling technology has achieved mass production, 300mm technology has also been basically mature, the future is expected to rely on the price and service advantages of a large number of new domestic production capacity.
300kg grade sapphire mass production, open the company's new growth pole
The company is one of the few companies in the world to master the large-sized bubble-generating sapphire crystal growth technology of 300kg class and is expected to increase its gross profit margin by more than 20% after its production to 150kg. LED industry continues to boast that global LED production will reach 96.7% in 2020 Using sapphire substrate.The company's newly expanded 4-inch 14 million mm sapphire project is gradually mass production release more than 10 million mm capacity, 2018 is expected to achieve full production in the future with the sapphire polishing machine and become a new growth level.
Earnings forecasts and investment ratings: Revenue from operations in 2017-2019 is expected to be 2.153 billion, 3.514 billion and 4.522 billion respectively, with net profit of 396 million, 684 million and 879 million. EPS is 0.40 yuan, 0.69 yuan and 0.89 yuan respectively, corresponding to PE 47x, 27x and 21x respectively and maintain 'Buy' rating.
Risk Warning: PV, semiconductor investment fell, industry competition intensified.