Events:
The company released its 2018 semi-annual report. During the reporting period, the company achieved a total operating income of 820 million yuan, an increase of 19.11% over the same period last year, and a net profit of 50.352 million yuan for shareholders of listed companies, an increase of 47.28% over the same period last year.
Technology continues to innovate, and R & D efforts are strengthened. During the reporting period, the company continued to strengthen research and development, strengthen the construction of technological research and development system, and form a two-level management platform for product research and development at the company level and ministerial level, highlighting key R & D projects. We will spare no effort to promote the construction of five product series platforms, such as SCR, IGBT, Trench MOS, over-junction MOS and Trench SBD, and the product performance level has been continuously improved. At present, 650V~1200V 's Trench-FS IGBT platform products have been verified by customers. It has actively expanded in new energy vehicles, frequency conversion household appliances, photovoltaic and other emerging fields, and has made smooth progress to achieve the desired results. We believe that the company is in a leading position in the field of power semiconductors, and the gross profit level of our products is expected to further improve with the expansion of the application market in emerging fields.
The power semiconductor market continues to be booming, and new applications in the industry create new markets. Since the second half of 2016, the power semiconductor market has begun to pick up and remain high. According to IHSMarkit, the global overall power semiconductor market, including power discrete components and power modules, reached US $38.3 billion in 2017, representing a growth rate of about 7.5%. At the same time, with the development of new energy vehicles, industrial Internet of things and other industries, the downstream application market of power semiconductors continues to expand, we expect that the industry will continue to maintain a high bearing in 2018, especially the price of MOSFET products is expected to continue to rise and bring flexibility to the company's performance.
It is planned to build a new eight-inch production line, and the dominant position of the industry will be further consolidated. The company announced in January that the capital raised by the proposed public offering of shares will not exceed 1 billion yuan, and the net amount after deducting the issuance expenses will be used for the construction of the new power electronic devices base project (Phase II). After the completion of this project, the company will have the processing capacity of 240,000 8-inch chips per year. After the completion of the production line, the company's technological advantages will be further enhanced, the product structure will be further optimized, and the industry leading position will be further consolidated and strengthened.
Investment advice: buy-An investment rating. We estimate that the company's net profit from 2018 to 2020 is 138 million yuan, 185 million yuan and 244 million yuan respectively, and the net profit growth rate is 45.0%, 34.3% and 32.2% respectively, and the corresponding EPS is 0.18,0.25,0.32 yuan per share. The monthly target price of 45 times PE,6 in 2018 is 8.23 yuan
Risk Tip: macroeconomic downturn, product expansion in new application areas is not as fast as expected