\u3000\u3000 Tianshui Huatian Technology Co.Ltd(002185) (002185)
Event: the company released the performance forecast for 2021. It is expected to realize the net profit attributable to the shareholders of the listed company of 1.32-1.5 billion yuan, a year-on-year increase of 88.11% – 113.76%, and the deduction of non net profit of 1-1.16 billion yuan, a year-on-year increase of 88.04% – 118.12%.
Comments:
Financial level: the company has strong cost control ability and strong performance cashing ability
The company has strong performance cashability and good operating cash flow. Headquartered in Tianshui City, Gansu Province in Western China, the company has certain competitive advantages in power cost, land cost and labor cost compared with enterprises in the same industry located in the developed coastal areas in the East. In addition, the company has effectively solved the disadvantages of the company in terms of region and transportation through various ways such as aviation, railway and highway. While ensuring the timely supply of products and raw materials, the company continues to strengthen technological upgrading and product optimization, so as to improve production efficiency and reduce production and operation costs as much as possible. At the same time, the company’s operating cash flow is good and has strong performance cashing ability.
Market level: grasp the market boom cycle and lay out downstream applications with high demand
Get through a variety of high-end and high demand products such as CIS chip, memory, RF and MEMS, and each product is expected to drive the high growth of the company’s performance in large quantities: according to the research on the development of RF filter material industry, entering the 5g era, the number of RF devices in smart phones will increase significantly. For example, the demand for the number of filters may increase by 2-3 times in the 4G era; According to the camera observation data, the CIS chip industry shows a trend of simultaneous increase in volume and price from the market perspective; According to IC insights data, the growth of memory market is higher than 14% from 2020 to 2023yoy. Technical level: international leading technology research and development and continuous product innovation advantages
1) the company’s existing packaging technology level and scientific and technological R & D strength are in the leading position in the industry: the mainland packaging and testing manufacturers directly catch up with the international leading level in terms of scale, technology and customers. Compared with the design and manufacturing links, the packaging and testing link is the link with the smallest gap in scale and technology between the mainland IC industry and the world’s leading manufacturers. Since its establishment, the company has always attached great importance to technology and product innovation. Through technological breakthrough, the company has gradually mastered the internationally advanced core technology of new high-density integrated circuit packaging. The existing packaging technology level and scientific and technological R & D strength have been in a leading position in the same industry in China.
2) in the post Moore era, advanced packaging related technologies and extremely difficult automotive system certification: Moore’s law is slowing down, and advanced packaging will be diverted to the chip industry. As a national high-tech enterprise, the company has mastered a number of advanced packaging technologies: Layout in WLP, TSV, bumping, fan out, FC and other technical fields; Pass iso45001, ISO27001 and esd20 20 and other system certification to further improve the quality management system architecture. The company has passed the audit of three top 10 automotive end customers and related automotive electronics customers in Europe, and the packaging output of automotive electronics products has continued to grow.
At the strategic level: fixed increase layout of advanced packaging, acquisition and layout of overseas markets + plant construction, covering all kinds of packaging technologies and products
Tianshui Huatian Technology Co.Ltd(002185) the fixed issuance price is 10.98 yuan / share, the total amount of funds raised is 5.1 billion yuan, and the national integrated circuit industry investment fund phase II Co., Ltd. is allocated 1.13 billion yuan. We will increase by 5.1 billion yuan to develop different types of advanced packaging, continuously improve the advanced packaging technology and its proportion, and be optimistic about the company’s competitive advantages in finance, market, technology and strategy.
Tianshui, Xi’an, Kunshan, Nanjing, unisem and other factories of the company cover all kinds of packaging technologies and products, effectively improve the company’s independent innovation ability and core competitiveness, meet the needs of the market and customers, and realize the long-term development of the company.
1) M & A of unisem Malaysia and opening up a broad overseas market: Tianshui Huatian Technology Co.Ltd(002185) successfully acquired unisem, a world-famous Malaysian semiconductor packaging and testing supplier. Unisem has a wide range of customers. Its main cooperative enterprises Broadcom, qorvo, skyworks and other companies are powerful. They are world-famous and leading RF solution providers with broad market prospects.
2) continuous layout of advanced packaging fields: the company has layout in WLP, TSV, bumping, fan out, FC and other technical fields, and is optimistic about long-term development. Investment suggestion: the company has multi-level superimposed competitive advantages in finance, market, technology and strategic planning, and its business is expected to grow continuously. Due to the continuous high prosperity of downstream applications, the net profit of the company in 2021 / 2022 was raised from 1057 / 1316 million yuan to 14.26/18.19. It is expected that the net profit of the company in 2023 will be 2.177 billion yuan, maintaining the “buy” rating of the company.
Risk warning: the performance forecast is the preliminary accounting data, subject to the annual report data, the rise of labor costs, the loss of R & D technicians, the aggravation of the epidemic, and the periodicity of the semiconductor industry may lead to great changes in performance
