Core ideas:
Investment advice: stick to the leader of high-quality household appliances
Q1 is the release period of the annual report and quarterly report, it is recommended to hold household appliance leaders with high performance certainty, and recommend white power leaders Midea, Gree Electric Appliances, Qingdao Haier, kitchen appliance leader boss appliances, and small home appliance leader Supor.
It is suggested that we should pay attention to the leader of the eldest son industry, share the future industry growth dividend, recommend a small household appliance leader Feike electrical appliances, integrated stove leader Zhejiang Meida.
Market Review of the week (2018.02.05muri 2017.02.09)
The CSI 300 index performed poorly, falling 10.1% in a single week. Home appliances plate due to the previous increase, the pullback is obvious. The Shenwan household appliance index fell 10.7%, outperforming the market by 0.6 percentage points, of which the white electricity index fell 11.2% and the audio-visual equipment index fell 6.0%.
Important news of the industry this week
Events:
According to the company's annual report for 2017, the company achieved an operating income of 1.635 billion yuan in 2017, an increase of 17.12 percent over the same period last year. The net profit of shareholders belonging to listed companies was 94.8538 million yuan, an increase of 133.52 percent over the same period last year, and shareholders belonging to listed companies deducted 82.9918 million yuan of non-net profit, an increase of 182.96 percent. The performance has achieved rapid growth.
The market demand for power semiconductors is strong, and the level of profitability has increased significantly. With the continuous growth of automotive, new energy and new industrial demand, the market demand for power semiconductors is becoming more and more exuberant. According to the International Electronic Business report, the delivery period of MOSFET increased from 8 weeks to more than 12 weeks in the third quarter of last year, and the prices of some products rose. The strong demand in the power semiconductor market directly drives the company's capacity utilization and sales revenue to grow significantly, and the profit level increases significantly. According to the announcement, the company's net profit margin on sales reached 5.80% in 2017, up 3.17 percentage points from 2016.
Leading manufacturing capacity, rich experience in mass production. According to the announcement, the company currently has 4-inch, 5-inch and 6-inch power semiconductor wafer production lines. During the reporting period, the wafer production capacity of various sizes is 3.3 million wafers per year, and the packaging resources are 2.4 billion wafers per year. It is in the leading position in the same industry in China. The company has accumulated profound experience in mass production, with more than 50 years of design and manufacturing experience. We believe that in the field of power semiconductor device IDM, mass production process experience and production line are the two most important factors that affect the long-term development of manufacturers. The company is in the domestic leading level in these two important factors, and has strong development potential in the future.
Middle and high-end products continue to expand, and the market competitiveness continues to improve. During the reporting period, the company persisted in product innovation and technological innovation, worked hard in the power semiconductor device industry, and constantly expanded to the high-end field of power semiconductor devices. At present, the company has mastered many high-end power semiconductor device core design technology, terminal design, process control technology, such as VLD terminal, 1700V high voltage terminal technology, deep groove etching technology, thin chip technology, etc., and gradually have the ability to provide customers with overall solutions. We believe that power semiconductor devices are widely used in white electricity, new energy vehicles, industrial equipment, consumer electronics, with a broad market space, with the company's continuous technological upgrading and high-end expansion of products, the company's market competitiveness will continue to improve.
We will make every effort to promote the new product process platform, and the results of research and development will gradually appear. From 2015 to 2016, the company increased its R & D investment, kept its R & D expenditure above 40 million yuan, and laid out new products and technologies for power semiconductors. In 2018, the company will make every effort to promote thyristor, IGBT, SGT MOS, MOS, Trench SBD product process platform construction projects, expand new energy vehicles, frequency conversion and photovoltaic and other fields. We believe that new products and new process platforms will inject new driving forces into the company and enhance the competitiveness of its products.
The management of the company continues to be optimized, and equity incentives demonstrate confidence. The company will further promote the use of management in the business department to improve the overall operational performance of the company. Through project management, the company promotes the upgrading of products, technology and equipment of various departments, so as to continuously improve the competitiveness of the organization. In November 2017, the company issued the equity incentive plan (draft). We believe that equity incentive is conducive to improving the corporate governance structure, strengthening incentives to the management and technical backbone of the company, and is conducive to the long-term development of the company.
Investment advice: buy-An investment rating. We estimate that the company's net profit from 2018 to 2020 is 138 million yuan, 186 million yuan and 246 million yuan respectively, and the net profit growth rate is 45.3%, 34.7% and 32.7% respectively, and the corresponding EPS is 0.18,0.25,0.33 yuan per share. Considering the trend of industry resource integration, the company has a strong expectation of endogenous and epitaxial development; military industry / new energy needs to break through urgently, and high value-added new products continue to optimize profitability. In view of the high growth of future performance and the high valuation center of the potential breakthrough industry, the monthly target price of 56 times PE,6 in 2018 is 10.27 yuan.
Risk Tip: macroeconomic downturn, product expansion in new application areas is not as fast as expected