China Micro Corporation (688012): Leading company in semiconductor equipment

China Micro Corporation (688012): Leading company in semiconductor equipment

Core Opinion: China Semiconductors: a leading semiconductor equipment 淡水桑拿网 company China Semiconductors is a leading semiconductor equipment company. Its main products include etching equipment, MOCVD equipment, etc. At present, the company’s plasma etching equipment has been widely used by international first-line customers from 65 nmTo 14 nanometers, 7 nanometers and 5 nanometers of integrated circuit processing and manufacturing and advanced packaging, the company’s MOCVD equipment has become the world’s top, domestically occupied gallium nitride-based LED MOCVD equipment.

Dividends on investment in semiconductor equipment brought by industrial transfer, localization is accelerating and it has risen to the national strategic pattern through the development of semiconductors. Domestic Yangtze River storage, Huali Micro, etc. have entered the investment cycle, driving the localization of upstream equipment.

Microelectronics etching equipment grasped the potential of domestic investment, and orders increased rapidly.

Mainland LED chip manufacturers have significantly expanded their production, driving demand for MOCVD, and China Microelectronics has integrated its domestic and cost advantages into half the world.

Etching and gas phase epitaxial growth technology are at the advanced level in the world. The main product for the development of micro-semiconductors has been raised since 2004. The main products include CCP etching equipment, ICP etching equipment and third-generation MOCVD equipment, etc.And MOCVD equipment technology is at the world advanced level.

The average value of the raised capital of the company is around the main business. The total investment of the project is US $ 1 billion. The estimated investment amount of the raised capital is US $ 1 billion. The investment includes high-end semiconductor equipment expansion and upgrading projects, technology research and development center construction and upgrading projects, and supplementary working capital.

The 19-21 results are expected to be 0.

38/0.

51/0.

68 yuan / share is expected to earn 21 in 2019-2021.

38/26.

69/34.

280,000 yuan, considering the number of shares after issue 5.

3.5 billion shares, the company is expected to earn 0 in 2019-2021.

38/0.

51/0.

68 yuan.

According to the estimation results of the comparable company assessment method, the company’s reasonable value range corresponds to 7-8 times in 19 years, and we believe that the company’s reasonable and reasonable value range is 27.

97-31.

97 yuan / share.

Risk prompts downstream investment risks; patent risks; technology upgrade risks; R & D capabilities replacing the risks of matching customer needs; overestimating risks.