Northern Huachuang (002371): Revenue growth rate short-term temporary company’s future growth is still expected

Northern Huachuang (002371): Revenue growth rate short-term temporary company’s future growth is still expected

Event: The company released its semi-annual report for 2019 and achieved operating income16.

55 ppm, an 18-year increase.

63%, net profit is 1.

29 ppm, an increase of ten years8.


  Comment: The LED business has led to a rapid increase in revenue growth, and the company’s future growth is still expected to achieve revenue in 2019H116.

55 ppm, an 18-year increase.


In a single quarter, the company’s 2019Q2 revenue was 9.

47 ppm, an increase of 11 years.

07%, compared with 30 in 2019Q1.

51% improved.

  2019 H1 company’s electronic process equipment business income12.

470,000 yuan, an increase of 17 in ten years.


  The company’s etching machines, PVD, CVD, vertical furnaces, cleaning machines and other semiconductor process equipment have entered batches of domestic 8-inch and 12-inch integrated circuit memory chips, logic chips and specialty chip production lines, and some products have entered world-class chip production lines and advancedPackaging production line.

Affected by the prosperity of the domestic photovoltaic industry, photovoltaic cell process equipment and single crystal furnace business increased; the development trend of the LED industry, the company’s LED equipment business growth was less than expected; the company’s other pan-semiconductor application business and vacuum heat treatment business maintained overallStable development.

Electronic 南京桑拿网 components business income 3.

98 ppm, an increase of 22 in ten years.

49%, mainly due to the increase in downstream demand and the company’s increased promotion of new products.

  The company’s inventory increased significantly, and the inventory at the end of 2019H1 was 37.

440,000 yuan, an increase of 57 in ten years.

58%; of which inventory is 19.

82 ppm, an increase of 75 in ten years.


The company is a domestic semiconductor equipment leader, and the inventory products are mainly equipment for online verification of downstream customers’ wafer fab production, indicating that the company has a large number of orders in hand, and future order resale will become the driving force for the company’s growth.

In the long run, through the transfer of semiconductor manufacturing to the interior, a large number of domestic new wafer fabs have strong demand for semiconductor equipment. Under the trend of domestic substitution, the company’s product research and development has progressed smoothly and there is a lot of room for future growth.

  Earnings forecast and investment rating: We maintain the company’s EPS for 2019-2021 to 0.

89, 1.

37, 1.

83 yuan forecast, the current expected corresponding PE estimates are 66, 43, 32, respectively, maintaining the “Buy” rating.

  Risk Warning: Risks of failure to increase, industry risks, and technical risks in the equipment field.