The company issued a forecast of first-quarter results. The company's 2020Q1 realized a net profit of 160 million yuan, an increase of 150% over the same period last year. During the reporting period, the company continued to promote the development of storage semiconductor business on the basis of high-end manufacturing business. At present, the semiconductor memory chip closed test business capacity is still in short supply, production has been in a state of full load, closed test business continues to maintain a good momentum of development.
At present, the company is the only enterprise in China with a complete industrial chain from high-end integrated circuit DRAM/Flash wafer packaging testing to module production. The company has multi-layer stack packaging technology, and is the only enterprise in China that has the qualification to carry out testing and verification cooperation with world-famous CPU manufacturers. the tested memory products can directly match their servers to the market. assist the domestic industry chain upstream and downstream to achieve the rapid verification of its platform. At present, the company's chip closed test products mainly include DDR3, DDR4,LPDDR3, LPDDR4, eMCP, USB, eMMC, ePOP, SSD, 3D NAND and Fingerprint fingerprint chips, etc., with international mainstream storage packaging technology such as wBGA/FBGA, on this basis, the company continues to develop advanced packaging FlipChip/ ultra-thin wafer stealth cutting technology and embedded system-level chip packaging technology.
We will increase the code storage industry, and Hefei will set up a factory to participate in in-depth cooperation in the industrial chain. The company plans to raise no more than 1.71 billion yuan to invest in the storage advanced closed testing and module manufacturing project of Peyton Storage. The financiers of the project also include the second phase of the large Fund, Hefei Economic Venture Capital, CLP Juxin, and so on. Hefei project is conducive to better serve domestic storage customers in the future and cooperate deeply with the industry chain.
There is a huge space in the storage market, and the localization continues to break through. According to the data of WSTS, the global memory market reached US $119.4 billion in 2020, accounting for about 1. 4% of the global semiconductor market. The domestic demand space is huge, but the localization rate is quite low. Domestic storage duo accelerate production expansion. Hefei Changxin transferred from 19nm to 17nm, accelerated technology upgrading, and set up a factory in Beijing to further expand production. The total planned production capacity of the second phase of Yangtze River Storage is 300,000 pieces. Changjiang Storage began mass production of 64-tier 3D NAND, in 2019. The release of 128-tier 3D NAND, in April 2020 will accelerate capacity and yield growth in the future.
As an advanced manufacturer of electronic products in China, the company focuses on semiconductor closed testing to speed up the horizontal and vertical integration of the industry. It is expected that with the gradual maturity of the domestic storage industry, the continuous improvement of storage localization penetration, Peyton science and technology supporting capacity continues to strengthen, with a strong growth certainty. At the same time, the company continues to accelerate the promotion of high-end electronic products manufacturing capacity, promote the Shenzhen Science and Technology City project, speed up the construction of industrial base, the comprehensive competitiveness is expected to continue to improve. It is estimated that the company's net profit from 2020 to 2022 will be 1.444 billion yuan respectively, maintaining a "buy" rating.
Risk hint: downstream demand is lower than expected and new plant construction is not as expected.
