Deep ploughing high-end clean room project, leading well-known enterprises in the industry
The company has mechanical and electrical installation project construction general contract first-class qualification and other professional qualifications, specializing in semiconductors and other high-end clean rooms, as a leading company in the industry, has undertaken a number of high-end clean room projects. Relying on Yaxiang in Taiwan, the company can get technical support and other resources, and is conducive to obtaining Taiwan orders.
The competitive stratification of the industry is obvious, and the market size of 2019 may reach 100 billion.
Policies play a guiding role in the development of the industry. recently, the National Academy of Sciences often proposes to extend the preferential income tax policies for integrated circuit and software enterprises to promote the development of the information industry. "made in China 2025" goal: the chip self-control rate will reach 40% in 2020 and 70% in 2025. According to this goal, dozens of 12-inch chip factories are expected to be built by 2025, which will bring more opportunities for the company. The degree of marketization of clean room in our country is high, the technical strength of enterprises is uneven, the barriers to entry are high, and the market has formed different layers. Due to the accumulation of R & D capability and construction experience, the company has occupied a place in the domestic market.
Clean room project is a production auxiliary project, which is an indispensable part of high-end manufacturing industry, and has a direct impact on the yield of electronic industry products. The electronics industry (including integrated circuits, new display industry, etc.) is the main downstream industry of the clean room project. The company's electronics industry accounted for more than 94% of the total revenue in 2018, which is the main source of revenue. Since 2016, China's integrated circuit investment has entered a state of rapid growth, with an annual growth rate of more than 50% in 2017. in the new display industry, the compound growth rate of collapsible OLED panels is expected to reach more than 80% by 2025. According to the relevant data of the China Electronics Society, the market size of the clean room industry may reach 100 billion in 2019.
Horizontal and vertical integration of the industrial chain, the future project acceptance materials are sustainable
The company has been paying attention to R & D investment. Since 2002, Yaxiang Integration is the first company in China to introduce CFD in clean room engineering applications. In 2018, the company had 38 unfinished projects with a total contract value of 3.392 billion yuan, an increase over last year. The company recently won the bid for the new phase of clean room project, accounting for 31% of the revenue in 2018, and the expected completion date is October 1, 2019. It may have a greater positive impact on 2019 performance, or a signal of China's increased investment in science and technology under the current situation, and more related projects may be invested in the future.
Revenue is expected to grow steadily, with the lowest expense rate in the industry during the period.
The development of the company slowed down in 2017 or due to the overall economic recession, but the company's revenue and net profit returned to positive growth in 2018, and the company performed better in comparable companies. The comprehensive corporate governance structure and project management capabilities continue to improve, and the future performance may grow steadily.
Investment suggestion
The state continues the preferential tax policy for integrated circuits, and the investment in integrated circuits and the increase in shipments of OLED panels may further promote the development of the downstream clean room industry. The company is expected to gain a larger market share and promote performance growth.
Under the current situation, the country continues to promote the construction of integrated circuits, and the company is expected to have some room for improvement in obtaining large valuations at this time. It is estimated that the company's EPS from 2019 to 2021 will be 0.87,1.10,1.42 yuan per share, respectively, corresponding to 19,15,12 times PE, with a target price of 24 yuan per share, with a "buy" rating.
Risk hint: the investment in the electronics industry is not as expected, the project is not as expected, the gross profit margin is lower, and the market expansion is not as expected.