[matters]
The company issued a pre-increase announcement for its annual results in 2017. the net profit attributed to shareholders of listed companies is expected to be 9000-95 million yuan, an increase of 121.57% 133.88% over the same period last year. The net profit after deducting non-recurring gains and losses belonging to shareholders of listed companies was 8000-85 million yuan, an increase of 172.76% Murray 189.81% over the same period last year.
[comments]
The market demand is strong, and the national policy promotes the development of power semiconductors. The National Strategic emerging Industry Development Plan of the 13th five-year Plan issued by the State Council clearly points out that it is necessary to enhance the supply capacity of core basic hardware and strengthen the research and development of semiconductor devices. The guidance Catalog of key products and Services of Strategic emerging Industries (2016 Edition) published by the National Development and Reform Commission also points out the importance of power electronic power devices. In addition, the rapid development of domestic new energy vehicles has also led to the growth of demand for power semiconductors. in the "medium-and long-term Development Plan of Automobile Industry" released by the Ministry of Industry and Information Technology in 2017, it is estimated that by 2020, the annual production and sales of new energy vehicles will reach 2 million. Power semiconductors will usher in a new wave of upsurge. Driven by a series of national policies, the market demand is strong, the company's sales revenue increased greatly in 2017, and the profit further increased.
With the continuous enrichment of production lines, a relatively perfect power semiconductor product system has been established. The company is mainly engaged in the design and development of power semiconductor devices, chip processing, packaging and sales, with the leading domestic manufacturing capacity, the company has 4-inch, 5-inch and 6-inch power semiconductor wafer production lines. At the end of 2016, the wafer production capacity of each size is more than 3 million wafers / year, and the packaging resources are 6 billion / year, which is in the leading level of the domestic industry. At present, the company has established from high-end diodes, one-and-two-way thyristor, MOS series products to the sixth generation IGBT domestic competitive power semiconductor product system, with scarce "actual mass production and landing" capacity in China, and the leading position in the industry cannot be shaken.
Continue to increase investment in research and development, high-end products will illuminate the future of the company. The company adheres to the technology development strategy of production generation, reserve generation and R & D generation, and continues to expand to the middle and high-end technology and application fields of power semiconductor devices. In the first half of 2017, the company invested a total of 44.4875 million yuan in R & D, accounting for 6.46% of the operating income. At present, the company focuses on the fourth and sixth generation IGBT products, COOLMOS products and TRENCH SBD and other middle and high-end products. The sixth generation IGBT products have been successfully developed and are well received in new energy vehicles and other fields. With the continuous popularization of the third generation semiconductor power devices, enterprises with R & D advantages will fully enjoy the industry dividend, and the company is expected to take advantage of this east wind to catch up with and surpass the international advanced enterprises to a new level.
Based on the above judgment, we predict that the earnings per share of Huawei Electronics in 2017, 2018 and 2019 are 0.12,0.19,0.26 yuan respectively, and the corresponding price-to-earnings ratio is 59,39 and 28 times respectively.
[risk Tip]
The demand for power semiconductor devices is lower than expected.
The progress of emerging industries is not up to expectations.