Shanghai Xinyang: Big silicon is going well

For the first time, the company gave a cautious rating, with a target price of 41.25 yuan. As the leading semiconductor material company in China, the company's product line is complete and the large silicon project has a higher probability than expected. At the same time, it will benefit from the expansion of downstream customer demand for resources and the ability to raise investment capacity. Release process. We expect the company's 2017-19 EPS to be 0.38, 0.55, and 0.73 yuan, giving the company 75 times PE in 2018 with a target price of 41.25 yuan.

Leading domestic semiconductor materials company, with strong R&D strength. The company is a leading company in semiconductor materials. The company's industrial chain is well-organized, and all products are listed in the top-tier suppliers. In addition, the company focuses on R&D accumulation, R&D input + the model of deep cooperation among universities and research institutes. Will help the company's long-term development. Benefit from the domestic tide of semiconductor construction, semiconductor materials such as wafer chemicals demand continues to rise, with the company's high-quality customer resources and the advantages of local companies, the competitiveness of its products will also accelerate.

In-depth layout of the IC industry chain, 300mm wafers to fill the gaps in the domestic market. Silicon wafers play a decisive role in semiconductor materials, 300mm wafer market size gradually expanded, the global market in short supply. The company successfully through the share of Shanghai Xinsheng cut into 300mm large silicon In the field of wafers, the 300mm wafers that are researched and developed are expected to reach volume production in 2018, which will break the long-term monopoly of domestic 12-inch wafers. The company is expected to achieve more than expected performance under the wave of localization.