Beifang Huachuang (002371) 2019 Interim Report Review: Pre-collection of Accounts and Stocks Hit Record Highs and Wait for the High Season
[Key points of investment]The company released the 2019 semi-annual report, and the company realized operating income in the first half of the year16.
550,000 yuan, up 18 in the same period last year.
63%, net profit attributable to mother is 1.
29 ppm, an increase of ten years8.
03%, net profit after deduction is 0.
25 ppm, a ten-year average of -59.
69%, from the company’s performance, the average revenue and net profit growth exceeded expectations, which is basically a decomposition factor. The peak of equipment order confirmation is mainly concentrated in the second half of the year. Orders are gradually confirmed in turn, and the performance is expected to return to high growth.
By industry, in the first half of 2019, the company’s electronic process equipment business increased by 17%.
13%, the overall gross profit margin increased by 3.
82pct, reaching 38.
54%, indicating that the company’s products have increased competitiveness in the market. The company’s various types of semiconductor equipment have accelerated their entry into domestic 8-inch and 12-inch storage, logic and special process production lines. Some high-end products have entered the world-class chip production line and advanced packagingProduction line; cost savings, benefiting from the development of the photovoltaic industry, the company’s photovoltaic cell process equipment and single crystal furnace business has been better and faster development, the order volume has steadily increased; the LED industry continues to be sluggish, the company ‘s LED equipment growth is less than expectedWaiting for the LED industry to pick up.
In the first half of the year, the company’s electronic component business performed well, with overall sales revenue increasing by 22 per year.
49%, revenue share increased to 24.
19%, component prices stopped falling and rebounded, product gross profit margin increased significantly9.
5pct, the second half of the year is expected to continue to maintain the economic situation.
The scale of advance accounts and inventories continued to reach record highs. According to the company’s interim data, the company’s advance accounts reached a record high of 16.
6.6 billion, according to a 40% advance receipt ratio, corresponds to 41.
With an order of 6.5 billion U.S. dollars, the inventory scale also reached a record high of 37.
44 trillion, rating increased by 7.
29 trillion, also reflects that the company has too many orders on hand, and a large number of products to be inspected are issued. Orders are confirmed in the second half of the year, and the company’s performance will improve.
The company accelerates the research and development of 5 / 7nm integrated circuit equipment to prepare for the development of the next decade.
The company’s fixed-increasing projects are accelerating. At present, the feedback from the Securities Regulatory Commission has been replied, detailing the necessity of implementing high-end integrated circuit equipment research and development and industrialization projects.The total budget for the half year is 34.94 million yuan, which is still in the initial stage of project construction.
[Investment recommendation]The company’s operating income is expected to be 46 in 2019/2020/2021.
6.4 billion, net profit attributable to mothers was 3.
62 trillion, EPS is 0.
88 yuan, corresponding to 75/49/31 times the PE.
Maintain the “overweight” rating.
[Risk reminder]Order confirmation progress is less than expected; domestic wafer fab construction progress is less than expected; 5 / 7nm research progress is less than expected.