Event: recently, the company announced that Wuhan Huaxing Optoelectronic Semiconductor display Technology Co., Ltd. won the bid for the sixth generation flexible LTPS-AMOLED display panel production line project clean B package project, winning the bid amount of 233 million. The smooth implementation of this project will help to improve the company's business undertaking capacity, provide more experience for the company's follow-up project development and cooperation, and will have a positive impact on the company's business performance.
Comments:
The domestic panel industry ushered in the peak of investment and construction, and OLED applications injected new industrial momentum. According to the available information and data, according to the statistics and calculation of domestic panel manufacturers in the next three years, the total investment of domestic existing production lines under construction and planning is about 571 billion yuan, of which OLED invests 228 billion and LCD invests 343 billion. This time, the company won the bid Huaxing Optoelectronics (Wuhan) sixth-generation AMOLED project with a total investment of 35 billion yuan, which is also won the bid again after winning the bid Huaxing Optoelectronics (Shenzhen) 8.5 generation LCD production line construction project. It is in line with the characteristics of high-tech barriers and high customer stickiness in the clean room of the panel industry, which is good for Yaxiang, which has leading technology.
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 industry, like the panel industry, is in a critical period of capacity acceptance and high investment, and the national will and industrial capital continue to help. According to statistics, there are 24 12-inch wafer factories in China, of which 11 have been put into production and 10 are under construction. 3 are planned, and the domestic semiconductor industry continues. Clean room project as an early investment in the semiconductor and panel industry will be the first to benefit, the company will fully enjoy the high growth dividend of the industry.
Taiwan semiconductor and panel production capacity has been transferred to the mainland, Taiwan Yaxiang has obvious advantages, and orders continue to increase. 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. Since the second half of this year, the company has continued to obtain large orders, including but not limited to Anhui Changxin 770 million orders, Fujian Jinhua storage production line 800 million orders and so on. With the continuation of the industry, the company's ability to obtain orders has been further enhanced.
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 24 times, 17 times and 13 times respectively. Give a "buy" rating.
Risk hint: the development of domestic semiconductors and panel displays is not as expected.