Huatian Technology (002185) Company Review: Fundamentals Improve Season by Quarter, Welcome to Industry Bottom Configuration Opportunities
Opinion: We believe that 2019Q1 is the period when the company’s performance is under the greatest pressure, and the turning point at the bottom of the industry will change. The company’s performance is expected to usher in the second half of the year, and it may perform better next year.
The company is currently affected by many factors such as industry downturn, pressure on performance, uncertainty of trade friction, penetration of market sentiment fluctuations, etc., and it is estimated that it will be relatively substituted. Combined with the recently acquired UNISEM, 5G-related high-quality European and American customers will be introduced.The product logic and production capacity are expected to pick up. We believe the company’s fundamentals continue to improve. We raise the company’s profit forecast for next year and the following year and continue to recommend it.
The bottom inflection point of the packaging and testing industry appeared, and the company’s performance is expected to bottom out.
We see that the semiconductor packaging and testing industry has experienced a bottom cycle of 3-4 quarters.
The short-term is the improvement of structural demand, the increase of domestic replacement orders, the maximization of production capacity, and the packaging and testing enterprises ushered in an inflection point opportunity.
From the medium and long-term perspective, benefiting from the promotion of application (5G) demand, the packaging and testing industry is expected to resume the bottom cycle.
5G boosts the use of SiP for a single mobile phone. Huatian Technology is one of the few leading domestic companies with relevant technologies and has introduced related customers. We are optimistic that the company’s performance under the domestic replacement logic in the 5G era will continue to release.
Successfully acquired Unisem, and introduced quality customers in Europe and the United States for 5G radio frequency devices.
The company successfully acquired UNISEM, a world-renowned Malaysian semiconductor packaging and testing supplier.
UNISEM is a well-known 淡水桑拿网 OSAT company in Malaysia with a wide range of customer sources. The European and American markets have revenues of more than 60%. Its main partners, Broadcom, Qorvo, Skyworks, and other companies are strong and have the world’s leading leading RF solution providers. 5G bringsIncreasing the content of radio frequency devices will boost Lara’s growth momentum, and the trend will be better next year.
In addition, Unisem is expected to further deepen its cooperation with customers in related markets after joining Chinese companies. For example, most of Skyworks ‘main customers’ revenues are tilted to mainland China. After the merger and acquisition are completed, the synergy of upstream and downstream cooperation is expected to become more prominent.bright future.
Allotment of shares to improve the technological level of advanced 杭州桑拿 packaging and testing, and production capacity is expected to pick up.
The company has completed the allocation of shares to improve the technological level of advanced packaging and testing of integrated circuits and expand the scale of production capacity.
With the commercialization of 5G, the mobile phone market is expected to usher in spring again. Through the promotion of CIS procurement by mobile phones, the company’s CIS production capacity is expected to gradually pick up.
The sales volume of Tianshui and Xi’an increased greatly. From 2016 to 2018, the sales volume of lead frame products of Tianshui increased from 200.
2.1 billion blocks increased to 257.
2.6 billion yuan, an increase of 28.
50%; sales of wood-based products in Xi’an range from 3.
5.2 billion pieces increased to 11.
9.1 billion yuan, an increase of 238.
35%, through recovery in production capacity, sales are expected to continue to increase.
Based on the emergence of industry and company performance inflection point signals, and considering the company ‘s SiP packaging technology, the acquisition of Unisem ‘s introduction of 5G-related high-quality international customers and the recovery in production capacity, we estimate the company ‘s net profit from 2020-2021 to 5.
27 trillion is raised to 7.
070000 yuan, plus the company’s recent rights issue, the company’s 2019-2021 EPS are expected to be 0.
37 yuan / share; at the same time, increase the overweight rating to buy.
Risk warning: Uncertainty in Sino-US trade war; 5G construction progress is less than expected; Unisem integration is not as expected; SiP advanced packaging demand is less than expected