Huatian Technology (002185): Short-term industry market challenges
Event: The company released its 2018 annual report and achieved operating income of 71.
2 ‰, rising by 1 every year.
60%, gross margin level is 16.
3%, down by 1 every year.
6 units, net profit attributable to the parent company3.
90 trillion, down 21 a year.
3%, net profit is 0.
1829 yuan, down 21 previously.
The company achieved operating income of 15 in the fourth quarter.
600 million, down 7 a year.
3%, the net profit attributable to shareholders of the listed company was 62.42 million yuan, which will decrease by 41.
The profit distribution plan for 2018 is 0 cash dividends for every 10 shares.
20 yuan (including tax), no bonus shares, and no capital reserve will be used to increase the share capital.
In the first quarter of 2019, the company’s sales revenue decreased by 11 year-on-year.
2% is 17.
1 ppm, gross margin decreased 苏州夜网论坛 by 1 in ten years.
4 is 11.
At 6%, the net profit attributable to shareholders of the listed company was 1,666 million, which decreased by 79 in the future.
The semiconductor market has weak demand, and the revenue growth rate for maximizing production capacity has accelerated: the company’s sales revenue growth in 2018 increased by 1.
60% is 71.
20,000 yuan, the growth rate in the first quarter of 2019 decreased by 7.
3%, from the perspective of the industry market, the macro environment and trade disputes in 2018, especially in the second half of the year, led to a significant shift in the demand for the semiconductor market, which had a substitution effect on companies within the industry.
As a supplier in the packaging and testing industry, the company maximizes production capacity. From the perspective of business distribution, the revenue scale of overseas markets has shown a significant downward trend in the second half of the year. The growth rate of advanced packaging bases represented by Xi’an and Kunshan is also significantly weaker thanTianshui headquarters.
Looking at the situation in the first quarter and the first half of 2019, this situation is still continuing for the time being.
The decline in gross profit margin is subject to the maximization of production capacity, and the profitability has dropped significantly: the company’s gross profit margin fell in 20181.
Six averages, gross margin in the first quarter of 2019 exceeded one level.
For 4 units, the proportion of fixed costs brought by insufficient production capacity has increased significantly to the company’s profit level.
Judging from the distribution of domestic and foreign markets, the rate of decline in gross profit margin of overseas markets is also significantly higher than that of domestic markets.
In terms of expense ratio, the company still has to persist in research and development and management expenses. The overall expense ratio level is controllable. In the future, the company will continue to supplement customer development and product research and development.
The target revenue for 2019 is US $ 7.8 billion, and the development trend of both endogenous and concurrent development is advancing: the company adheres to the management philosophy of “customer-centric and creates value for customers” for the overall strategic plan for 2019, and increases its offer by acquiring UnisemThe company’s industrial competitiveness, while advancing the construction of the Nanjing advanced packaging and testing industrial base, Baoji lead frame and packaging testing equipment industrial base projects, and strive to complete the main body of the Nanjing advanced packaging and testing industrial base plant by the end of 2019. Equipment installation conditions, Baoji lead frame and packaging testing must be completedThe equipment industry base has completed the project construction, and the production conditions are in place.
Through endogenous and epitaxial expansion, we will continue to develop high-end processes and technological capabilities and competitiveness, and enhance the company’s added value, market share, and profitability.
The target for operating income in 2019 is RMB 7.8 billion. Despite the challenges, we still maintain a positive attitude towards the company’s medium- and long-term development.
Investment suggestion: We predict that the company’s earnings from 2019 to 2021 will be 0.
27 and 0.32 yuan.
Return on net assets were 7, respectively.
9% and 9.
9%, maintain Buy-B investment recommendation.
We believe that although the industry market is facing short-term demand in the short term, and it has uncertain effects on the company’s short-term performance, the company still has a good development in terms of industrial layout planning and technical capacity improvement. Once the market gradually begins to stabilize and recover, the companyThe growth potential is worth looking forward to.
Risk reminder: the market demand of the semiconductor industry is less than expected; the risk of further intensification of international trade disputes; the improvement of new technology capabilities and the release of production capacity are less than expected.