Main points of investment:
Company announcement: the company has become Wuhan Huaxing Optoelectronics 6th generation AMOLED panel production project clean package winning bid unit, winning bid amount of 233 million yuan, expected completion time on June 20, 2018. As of this announcement, the company's new orders in 17 years are close to 3 billion, laying a good foundation for 18 years.
The clean room industry of the high-end electronics industry has entered an explosive period, and IC and panel clean rooms are about to become a market of hundreds of billions. The semiconductor and panel industries have attracted a period of investment explosion. In the past three or four years, the average annual investment growth rate of 40% has been determined, and the long-term annual investment growth rate has been close to 20%. It is estimated that the clean room market of the electronics industry reached 20 billion in 2016. by 2019, it will be close to 60 billion yuan, with large market space and rapid growth.
The clean room of the high-end electronics industry has high barriers and high concentration. 1) the industry concentration is high. Clean rooms in the electronics industry are highly concentrated, with five companies accounting for 90% of the market. In terms of engineering design, Taiji Industry and Ten Hospitals occupy an absolute position, while Dianji, CLP IV, Yaxiang Integration, Jiangxi Hantang and MW occupy 90% of the market in clean room construction. 2) the industry barrier is extremely high, and long-term project experience is needed to ensure the yield and quality of end products. Clean room engineering service industry has high barriers, the industry has been done by a handful of companies, the requirements for technology, project experience, capital and qualifications are very high, only the accumulation of long-term operation experience can ensure the yield of the final product.
The company has rich experience in projects and is highly recognized by the owners. Company customers include many international well-known semiconductor manufacturers, has accumulated more than 2.1236 million square meters of clean room project construction experience, continue to win bids Taiwan Semiconductor Manufacturing Co Ltd, Semiconductor Manufacturing International Corporation, Hefei Changxin, Fujian Jinhua, deep Tianma and other major projects, has completed the project Xiamen Lianxin mainland yield first, widely recognized by the market.
High-end electronics industry clean room technical requirements are extremely high, the company has the industry-leading core technology. The company applies for 46 patents, and aims at the database of production process and product yield of IC semiconductor and optoelectronic industry to digitize and scientize the engineering experience for many years, and provide data support for the follow-up contracting and implementation of engineering projects. In addition, the company has industry-leading "Computational fluid Dynamics Analysis Application Technology" and "Air sampling and Analysis Technology", which can provide customers with pre-simulation analysis and post-sampling analysis. optimize the layout of the clean room, improve the production process, reduce production costs and improve the yield of finished products, and greatly improve the stability and reliability of clean room engineering. At the same time, the company develops micro-vibration measurement technology, air molecular pollution control for the highest end cleanliness requires customers to create clean rooms.
The company is one of the leading companies in mainland China with the highest yield rate of IC and panel clean room projects. benefiting from the rapid growth of IC and panel investment in 17-19, the company has strong project experience and technical moat, the first to benefit from the highest certainty, to maintain the profit forecast and maintain the "buy" rating. It is estimated that the company's annual income in 17-18-19 will be 27gamma 35 / 4.6 billion yuan, an increase of 29.8%, 29.9%, 31.8% and 437 million yuan, respectively, with a year-on-year increase of 39%, 37.1%, and 1.08 EPS per share, respectively. The PE for 17-18-19 is twice as much as that of 21-16-11.