Jacques Technology (002409) In-Depth Tracking Report： Semiconductor Material Platform Companies Multi-point Flowering Future Expectations
Jacques Technology (002409) In-Depth Tracking Report: Semiconductor Material Platform Companies Multi-point Flowering Future Expectations
The company’s technological strength is leading and it is expected to fully benefit the development of the downstream semiconductor industry.We 杭州夜网 predict that the company’s EPS for 2019-2022 will be 0.54/0.76/1.00/1.38 yuan.With reference to the company’s historical estimates and comparable company estimates, considering the number of leading companies in the company, which may lead to growth, we believe that 70 times PE in 2020 is a reasonable estimate for the company, raise the target price to 53 yuan, and maintain the “buy” level. Semiconductor material platform company, endogenous and rapid development.The company’s traditional business is the production and sales of organic phosphorus flame retardants, and the LNG insulation material business is developed through endogenous growth.Since then, the company successfully acquired Huafei Electronics, Comet, Jiangsu Scitech through epitaxial mergers, and successfully cut into semiconductor packaging materials, electronic 上海夜网论坛 special gas, IC materials and other fields to achieve rapid development. Semiconductor precursor products occupy domestic blanks and are expected to significantly increase the company’s performance.UP Chemical products are used in storage and logic chip manufacturing, of which thin film deposition and photolithography processes are the most important application fields.The size of the driver market before 2019 is about 12.USD 0 billion, the precursor market is expected to maintain rapid growth in the next few years.With the release of the production capacity of Wuxi Hynix and Yangtze River Storage, the company’s performance is expected to increase significantly. Electronic special gas has good profitability, and silicon powder benefits from advanced packaging.In terms of electronic special gas, the company’s products are sold in Japan, South Korea, the United States, India, Brazil, and Taiwan, China and other countries and regions. Semiconductor-grade carbon tetrafluoride has successfully entered the TSMC supply chain system, and the company’s products have good profitability under scale advantages.In terms of silicon powder, the company has formed long-term supply cooperation relationships with Sumitomo Bakelite Japan, Hitachi Chemicals, Taiwan Yide, etc., aiming to maintain its leading position and continuously increase its market share. Traditional business is expected to resume, and orders for LNG materials continue.Affected by security incidents, the company’s flame retardant business continued to decline.Revenue from flame retardant business in 20187.47 ppm, a decrease of 17 per year.24%, the proportion of flame retardant business revenue continued to decline in the first half of 2019.If Binhai Jacques resumes production, the company’s flame retardant business will resume ahead of schedule.In terms of LNG materials, the company has extended large orders with Hudong Zhonghua Shipbuilding in recent years, and strives to continuously expand its market share. Risk factors: Lower-than-expected downstream verification; intensified market competition; fluctuations in product prices; and the resumption of production at Binhai Jacques is uncertain. Investment suggestion: Considering the ringing of water in 2019, Binhai Jacques production will affect the flame retardant business, and the company’s technological strength is leading. It is expected to fully benefit from the development of the downstream semiconductor industry in the future.49/3.50/4.61/6.3.8 billion (originally, the net profit attributable to mothers for 2019-21 is 2.74/3.38/3.89 ppm), corresponding to EPS of 0.54/0.76/1.00/1.38 yuan.With reference to the company’s historical estimates and comparable company estimates, considering the company’s number of leaders and possible growth, we believe that 70 times PE in 2020 is a reasonable estimate for the company, raise the target price to 53 yuan, and maintain the “buy” level.