[event: the company recently announced that it has received the "bid winning notice" to confirm that it has become the winning bidder of the process pipeline system of the memory production line construction project of Fujian Jinhua Integrated Circuit Co., Ltd., with a bid winning amount of 349 million yuan. The estimated completion date of the project is June 20, 2018. The winning bid is another big order after the Fujian Jinhua 447 million order announced on November 3. So far, the company has accumulated 795 million Jinhua integrated circuit project orders, which is expected to have a positive impact on the company's performance in the future.
The trend of high-profile demeanor in the semiconductor industry remains unchanged, and the clean room project has benefited from high growth in the industry. The domestic semiconductor and panel industry is in a period of rapid development. according to statistics, the total investment of semiconductor + panel is expected to reach 440 billion yuan annually in the next 3-4 years, corresponding to the clean room project of 440-66 billion space. clean room engineering as the semiconductor and panel industry's early investment will be the first to benefit, the company will fully enjoy the industry's high growth dividend.
Taiwan semiconductors and panel production capacity has been transferred to the mainland, and Taiwan Ya Xiang has obvious advantages. In recent years, the transfer trend of Taiwan semiconductor and panel production capacity to the mainland is clear. As a Taiwan enterprise, the company, deeply ploughing the domestic clean room field, has obvious advantages to undertake, and has become the preferred enterprise for clean room system engineering.
Semiconductor and panel industry clean room barriers are high, technical advantages + industry accumulation increases customer stickiness, order growth is natural. After years of development, the company has grown into an engineering technology company with leading technology, with leading technical strength in the industry, and high clean room barriers in the semiconductor and panel industries. Ya Xiang is the only one in China with chemical analysis and air sampling technology. it is second to none in the field of yield improvement, and there is this demand in the clean rooms of the domestic related industry chain. At the same time, in the first half of this year, the company approached and strived for more than 10 clean room projects, a huge increase over last year, including but not limited to Anhui Changxin 770 million order, Fujian Jinhua storage production line 800 million order and so on. Customer stickiness is further enhanced, and it is natural to obtain orders.
Investment advice and rating: the company's net profit from 2017 to 2019 is expected to be 201 million yuan, 297 million yuan and 393 million yuan, and the EPS is 0.94,1.39,1.84 yuan, with a corresponding price-to-earnings ratio of 28 times, 19 times and 15 times, respectively. Give a "buy" rating.
Risk hint: the development of domestic semiconductors and panel displays is not as expected.