Beifang Huachuang (002371) Company In-depth Report: Progressive Implementation of Import Substitution for Domestic Leaders in Semiconductor Equipment

Beifang Huachuang (002371) Company In-depth Report: Progressive Implementation of Import Substitution for Domestic Leaders in Semiconductor Equipment

Leading in semiconductor core equipment and accelerating its rise under the trend of localization: Northern Huachuang Technology Group Co., Ltd. is a strategic reorganization of Qixing Electronics and Northern Microelectronics, and is currently a leading company in the domestic high-end integrated circuit technology equipment.

The main four businesses: semiconductor equipment, vacuum equipment, new energy lithium battery equipment and precision electronic components.

The quality of downstream customers is excellent. There are first-class semiconductor manufacturers such as SMIC, Huali Microelectronics, and Yangtze River Storage, as well as first-class photovoltaic monocrystalline silicon leading companies within Longji.

The company’s semiconductor products cover most of the key equipment in the 8-12-inch semiconductor production pre-treatment process, and are deployed in the fields of PVD, CVD, ALD, etching machines and cleaning machines.

Benefiting 都市夜网 from the favorable factors of the semiconductor market and the drive of equipment import substitution, the semiconductor equipment business maintained a steady growth trend.

With the continuous increase of domestic semiconductor wafer production investment, Northern Huachuang is expected to realize import substitution first.

Benefiting from the wave of plant construction, strong macro-policy support and market demand: According to SEMI forecasts, 62 new wafer fabs will be put into production worldwide in 2017-2020, of which 26 are in mainland China, accounting for 42% of the total.

As many wafer fabs are invested in the mainland, the growth rate of the mainland equipment market will exceed the global growth rate. Data show that the global number of semiconductor manufacturing equipment in the first three 深圳桑拿网 quarters of 2018 reached 495.

7 billion US dollars, an increase of 19 in ten years.

39%.

In 2017, China’s semiconductor manufacturing equipment parts and components were 82.

2 billion US dollars, reaching 104 in the first three quarters of 2018.

1 billion US dollars, an increase of 61 in ten years.

40%.

The mainland semiconductor industry has begun to rise. In 2018, the purchase amount of semiconductor equipment for the first time squeezed Taiwan, becoming the world’s second largest market.

Initially, nationally recognized integrated circuit localization, the central and local governments have issued policies and support in the name of industrial funds.

At present, domestic semiconductor equipment has made breakthroughs in individual fields.

During the two sessions, the focus was clearly on reducing the burden on manufacturing and small and micro enterprises, and the current 16% tax rate for manufacturing and other industries was changed to 13%.

The State Council approved the plan for the second phase of the IC Fund. It is expected that the scale of the funds raised in the Phase II of the IC Fund will exceed that of the first phase, which will promote the development of ICs.

19 and 20 years will be the outbreak of semiconductor equipment orders. Northern Huachuang’s orders are expected to continue to grow: Currently, the new wafer fabs in mainland China are planned to conduct semiconductors for multiple 8-12 inch production lines in 19-20.Procurement of equipment.

It is expected that in 2020, the three major domestic storage factories will plan to expand production, which will also be a peak period for equipment purchase, and the demand and supply side of 12-inch wafers are in a state of mismatch.

Beifanghua Creations, a domestic leader in semiconductor equipment, will fully benefit from this downstream capacity expansion.

In addition, according to the company’s total inventory and advance receipt data, it can be trimmed. North Huachuang has a large number of orders on hand, which is a guarantee for future performance growth.

It is expected that North China Huachuang will continue to grow rapidly in the medium and long term, and its performance will maintain a state of rapid development.

Risk reminder: the risk that the industry demand is less than expected; the risk of technological update iterations in the equipment field; the risk of government subsidies to decline.

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