Xingsen Technology (002436) Annual Report Review: Cloud Kaifang Sees Moon and Samsung

Xingsen Technology (002436) Annual Report Review: Cloud Kaifang Sees Moon and Samsung

Event: On March 19, 2019, the company released its annual report and realized operating income of 34 in 2018.

73 ppm, a five-year increase of 5.

80%, realized operating profit 2.

76 ppm, an increase of 25 in ten years.

70%, net profit attributable to shareholders of listed companies.

15 ppm, an increase of 30 in ten years.


Investment highlights: Shoude Yunkai sees the moon and the moon, and the Samsung certification of the IC carrier board mentioned in the annual report is the best evidence of the turning point in performance.

The company has been deploying IC carrier boards since 2012. It has been carrying heavy loads for many years and changed the profitability of carrier boards. However, the company’s positioning and goals have always been clear and clear.
After five years of hard work, we have continuously achieved breakthroughs in customers, technology and process capabilities. In 2018, the IC carrier board business achieved sales revenue of 2.

3.6 billion, an increase of 64 in ten years.

05%; the company clearly stated in the annual report that it passed Samsung certification in September 2018 and became Samsung’s only domestic mainland domestic packaging supplier. This is the company’s first official disclosure of Samsung certification.

The growth expectation of the IC carrier board is actually there in the past few years, but the process is not so simple, so it has not been able to fulfill this expectation before.

Achieved two key moments in 2018 (Samsung certification passed with 2.

3.6 billion sales growth in real terms), indicating that Xingsen has established a foothold in the high-end business area of IC substrates and has truly entered a positive track of growth. It is no longer just an expectation or “story”. This is very importantAdvanced point.

In general, IC carrier boards cost 40% -60% of the cost of IC packaging and testing. Packaging and testing is the first to achieve domestic substitution under the background of global IC throughput gradually shifting internally. It is also the integration of heterogeneous integration (such assip, 3D). As one of the important raw materials for IC packaging, there is a great opportunity for carrier boards to work together to achieve common breakthroughs in packaging and testing.It is at least one to two years ahead of other companies in terms of market supply and demand, and the company is the first to benefit from promotion.

When the PCB prototype / small batch board turns around, 5G will activate the company’s third step growth.

In 2018, the company’s PCB business achieved sales revenue26.

32 ppm, a ten-year increase4.

19%, the overall performance is highly stable: Although the subsidiary Yixing Silicon Valley has decreased, its operating conditions have improved significantly. After June 2018, it has achieved a single-month turnaround and the British Expection has significantly reduced its loss by 1003.

890,000 yuan.

The company’s two performance step growth in the past two decades are similar to the background of the era-the transformation of the domestic 南京夜网论坛 wireless communication system into domestic communication equipment and pre-order supply chain manufacturers injected strong growth momentum,A large number of customers’ R & D demands have increased the demand for PCB prototypes. As the largest model and allegro manufacturer in China, the company naturally benefits a lot.

In this annual report, the company also noticed that the company invested heavily in research and development in 20181.

800 million, focusing on the development of buried wire packaging substrates, semiconductor test boards, 5G antenna boards, 77G automotive radar boards, 400G high-speed optical modules, ultra-thin HDI rigid-flex boards and other products.

It is easy to see from the product parameters that the company has deep coverage in high frequency, high speed, high integration and other 南京桑拿网 fields.

At present, the global 5G commercialization is gradually expanding, and it is expected to enter the formal promotion stage around 2019-2020, and the possibility of the company’s third growth step has been transformed.

The high-level semiconductor test board once again turned in a beautiful annual report.

Test board is another semiconductor business that the company has laid out in recent years. In 2015, the company acquired the US-listed company Xcerra’s semiconductor test board business Harbor Electronics for $ 23 million. At the same time, Shanghai Zefeng Semiconductor was established to provide domestic first-line chip design companiesTest the solution.

Harbor’s team was adjusted in 2018 and is currently not stable, but all of its goodwill has been accrued in 2018 with limited future impact.

However, Zefeng, a local solution team, has performed refreshingly and has full growth flexibility. In 2018, it achieved operating income of 8020.

440,000 yuan, net profit 2369.

270,000 yuan, an increase of 80 in ten years.


We believe that Zefeng will grow together with its core customers. The comparable template should be an accurate test of early Taiwan. The future growth space and direction are different, which is the potential and very sustainable growth momentum of Xingsen.

Earnings forecast and investment rating: Maintain Buy rating.

The advancement of 5G industry has brought rapid increase in downstream capacity requirements such as prototype Allegro in the traditional field. After the thick IC carrier business passed Samsung certification, the company is forced to stabilize new customer orders while rapidly realizing new capacity landings.The incremental area will be an important aspect of the company’s growth from 2019 to 2020.

The company’s past blood loss points are gradually distorting losses, and a new virtuous circle may be formed. It is expected to be gradually realized and strengthened. This annual report passes very good inflection point information. It is expected that the company’s net profit in 2019-2021 will be 3.

12, 4.
19 and 5.
53 trillion, currently corresponding to PE28.

12, 20.

97 and 15.

86 times, maintain BUY rating.

Risk warnings: (1) IC carrier board expansion is less than expected; (2) PCB capacity expansion is less than expected; (3) Global 5G business progress is gradually expected.