Hite High-tech (002023): High-end equipment manufacturing and microelectronics business reverse into a rising channel
The third-generation semiconductor foundry business has been in-depth layout. In 2020, the shareholding ratio may be substantially improved.
79% of the subsidiary Hiviwas is an open platform in the field of second-generation / third-generation compound semiconductor integrated circuits integrated with process development and device model manufacturing, jointly developed by the company and CPIC 29, RF, optoelectronic, Power electronics, etc. belong to the company’s key business areas.
To a certain extent, the company’s production line design meets the requirements of higher performance indicators of shareholders, and the process setting directly points to leading technology.
On 44th, 2018, Chinese companies entered the list of US export control entities, and the company is one of them.
Technology accumulation: Haiwei Huaxin is the first echelon of gallium nitride chip patent technology, with a total of 249 patents, of which more than half are invention patents. Technology 南京夜生活网 development work for multiple process routes has been completed, including resonant gallium, nitrideGallium and indium phosphide processes, followed by market-oriented, the company has developed 5G gallium nitride processes for base stations with wavelengths less than 6GHz, gallium arsenide PPA15, PED25 and silicon-based gallium nitride power devices, and released millimeter waveBreak with 0.
15um gallium arsenide process, three-inch and six-inch gallium arsenide VCSEL laser processes, and silicon-based gallium nitride manufacturing processes for power electronics are also making progress in 2019.
Capacity planning: The first 6-inch compound semiconductor commercial production line in China has been completed, and core high-end chips have been independently controlled and domestically replaced. Completed include gallium arsenide (GaAs), gallium nitride (GaN), and silicon carbide (SiC).)) And the development of 6 process products inside phosphine naphthalene.
In terms of production capacity, the company’s current planned production capacity of gallium carbon dioxide wafers is 2,000 wafers / month, and the planned production capacity of gallium nitride is 600 wafers / month.
According to the semi-annual report for 2019, the total assets and non-current assets of Highway Huaxin are 14 respectively.
75 ppm and 13.
74 million, is expected to have reached the peak of depreciation.
Market Expansion: The company’s products provided to customers have achieved substantial growth in the number of cooperative customers and orders, completing breakthroughs from the order of tens of millions to hundreds of millions, some of which have been expanded; 5G base station products have passed performance verification and are currently in reliability verificationPhase; silicon-based gallium nitride power device chips have achieved mass production in small quantities and delivered to customers.
In addition, a number of domestic alternative products have already achieved orders, and the remaining models are continuing to follow up, gaining a good situation of the comprehensive development of specific products and the civilian product market.
In 2019, the company’s output value is expected to be close to $ 100 million, but considering depreciation and labor costs, it is still in a slight tilt.
With the introduction of customers, product stereotypes and the rhythm of mass production, the company’s capacity increase in 2020 will further increase.
According to the company’s product technology level and market demand, it is expected that the operating conditions will improve substantially in 2020, and we will continue to pay attention to the company’s subsequent order breakthroughs.
Market space: According to Yole et al., The global compound semiconductor market size is about 11 billion U.S. dollars, of which GaAs is mainly used mainly in the communication field; GaN will gradually increase its proportion due to its high frequency and high power performance.
其中：1，GaAS因高频，抗辐射等特点被大量无线通讯核心组件射频模块中，是PA和Switch的主流材料，5G通讯扩展会带动单机PA消耗量，根据Yole预计，2017年 年砷化The market size of gallium PA devices is USD 8-9 billion, and the market size is expected to reach USD 10 billion in the future.
2. GaN has gradually become the material of choice for high-frequency and high-power microwave devices due to its large contraindications, high thermal conductivity, stable chemical properties, and radiation resistance. It is often detected by reflective radar, communication substrates, and power devices.
The construction of 5G base stations will be one of the core driving forces for the growth of GaN. According to Seri Research’s forecast, the GaN RF device market size in 2018 will be less than 2 billion US dollars, and maintain a 23% annual compound growth rate. The market is expected to be 2023The scale can reach USD 1.3 billion.
3. Because of its high frequency, high power, and high efficiency, GaN power electronic devices are the core chips of power supply products such as mobile phones, notebooks, automotive electronics, and wireless chargers. They are currently in the early stages of market heavy volume.
Xiaomi released the Type-C 65W charger with gallium nitride technology on February 13, 2019, marking that the product technology has matured and has gradually penetrated into the charger market and is expected to replace more brands in the future.
According to Yole’s prediction, GaN’s power business may reach about 4 by 2023.
USD 2.3 billion, a compound annual growth rate of 93% from 2017 to 2023.
The company can benchmark Taiwan’s compound semiconductor foundry leader, Taiwan Stable, referring to its 2018 revenue of 3.5 billion US dollars and net profit6.
32 ppm, the reduction of its gallium nitride products, dominated by gallium arsenide, and biased towards the mobile phone end HBT process, most of which are pure foundry.
The core equipment manufacturing business has successively completed multi-model batch delivery, or entered a high-speed growth channel to replace the company and actively promote the core equipment manufacturing and R & D business. Currently, there are a number of high-end core equipment on the market, and actively promote the cabin oxygen system and helicopter rescue winches.New projects such as the modification of imported turboshaft engines to numerical control system and development of multi-type engine maintenance technology.
Of which: 1.
The engine automation control system has been increased from 1 model in the past to 7 models in the research project, of which 4 models have passed customer identification and achieved mass production delivery; 2.
A customer who has packed a certain type of helicopter rescue winch has reorganized multi-model transport helicopters. It is the first helicopter rescue electric winch developed in strict accordance with special technical specifications and special procedures.
According to our Air Force Helicopter report, only conventional new tactical general-purpose helicopters Straight-20 are accompanied, and with the expansion of our army ‘s army, it is expected that there will be at least 500 military helicopters in the next 3 years;
Multi-model helicopter oxygen system has been installed for customers, and it adopts digital pulse oxygen supply technology for the first time in China. The technology has reached international advanced level and domestic leading level; 4.
The company has formed overhaul capabilities for turboprop and turboshaft small and medium-sized engines, covering seven series of mainstream engine manufacturers at home and abroad. It is a nationally recognized small and medium-sized engine overhaul support base, and also has multiple auxiliary power units (APU).Overhaul capacity.
Under the existing engine maintenance capability, the company has developed a certain type of turboshaft engine maintenance capability and has passed customer identification.
The largest third-party training center in China, the aviation training business maintains a steady and stable growth. The company is the largest third-party flight training center in China, with an annual training capacity of over 70,000 hours. It mainly provides pilot training services for B737, A320, and EC-135 helicopters.And provide A320 / A330 / B737 and other types of emergency survival training services for Air Force flight attendants.
The company radiates domestic and international markets. Based on the existing Kunming Fei’an, Tianjin Fei’an, and Singapore AST, it will build Shenyang Fei’an in 2019. Up to now, the company has 22 seats and 13 simulators, which is more than 30 in the Asia-Pacific region.Airlines provide services.
In addition, Ansheng, a joint venture between the company and Rockwell Collins, mainly develops military aircraft simulators and has independent intellectual property rights. The product system includes the two major systems of Boeing and Airbus, such as B737NG and A320CEO simulators. The company currently develops 737NG.A320CEO full-motion D-class simulator has been delivered to customers and passed the certification of the Civil Aviation Administration.
Investment suggestion: The company is in a long-term bottom position, and the company’s business conversion has entered a comprehensive upward channel. The high-end equipment manufacturing business outside has followed the model installation and has a fast pace. In addition, after years of expansion of the microelectronics business, domestic substitution has been adopted, and 5G is about to enter a large scale.In the context of large-scale commercial use, the continuous increase of production capacity will become an important growth point for the company’s future performance.We expect the company’s net profit for 2019-2021 to be 0 respectively.
40 trillion, corresponding estimates are 150, 66, 42 times.
Covered for the first time, giving “Buy-B” rating.
Risk warning: military orders are less than expected; microelectronics sector is less than expected