The main points:
The first quarter results showed a large increase, and the follow-up will enter the 'new phase' of stable growth. As the current year is a major year for the construction of semiconductor fabs, the market demand is large, and the company’s sales volume has increased significantly, and at the same time in 2017 In the first quarter, the company’s net profit attributable to the shareholders of the listed company was 1.604 million yuan, and the earnings per share was 0.0035 yuan. The base figure was relatively small, resulting in a year-on-year increase in the first quarter of 2018. With the continuing operations of the company, it is expected that the follow-up operating results for the current year will increase year-on-year. The growth rate has stabilized.
Industry development equipment first, equipment endorsement or take the lead to benefit. In recent years, the integrated circuit industry in the country's great support and the global focus of the shift to China's major trend, will take the lead in driving the needs of the upstream equipment industry, and the company is the largest domestic semiconductor equipment leading enterprises. It is expected to enjoy investment promotion and domestic alternative dividends.
China will build more than one wafer production capacity in 2018. It will build a new year in 2018. The world will start production of 62 semiconductor fabs from 2017 to 2020, of which 26 will be located in mainland China, accounting for 42% of the global total. 2018 It will be the most concentrated year for the construction of a mainland fab. According to SEMI forecasts, a total of 13 wafer fabs will be completed and put into operation in the mainland. According to the announced plan, the planned capacity investment for 2017-2020 is about 100 billion US dollars, of which equipment will be Accounted for 60-80% of the total investment, so the industry growth space is clear, the company's performance is expected to continue to grow.
Earnings forecast and rating: We expect the company's 2017-2019 EPS to be 0.32 yuan, 0.71 yuan and 1.12 yuan respectively, and the corresponding dynamic price-to-earnings ratios are 130 times, 59 times and 37 times, respectively, giving 'recommended' investment rating.
Risk Warning: Technical Risk; Industry Cycle Risk.