Xingsen Technology (002436) coverage report for the first time: IC substrate board turning point is now the company usher in a new round of growth

Xingsen Technology (002436) coverage report for the first time: IC substrate board turning point is now the company usher in a new round of growth

Xingsen Technology: The leader of domestic PCB prototype and IC carrier board pioneer company was mainly based on PCB prototype at the beginning. After listing, the company actively expanded its business line. At present, it has formed three major businesses of PCB, semiconductor and military products.

The company’s operating income for the first three quarters of 2018 was approximately 26.

40,000 yuan, an increase of 5 in ten years.

10%; net profit attributable to mother is approximately 1.

76 ppm, an increase of 11 years.


The company’s gross profit margin for the first three quarters of 2018 was 29.

96%, basically flat for one year; net interest rate is 7.

64%, increase by 1 every year.

80pct, mainly because the amount of impairment of the company’s assets decreased.

Industry analysis: The market space is broad, and the domestic replacement is just the time Prismark predicts that the global PCB output value in 2018 will reach 61 billion US dollars, thereby increasing 3.

8%, PCB has a broad market space.

The mainland has advantages in terms of cost, skilled workers, and industrial support, so the global PCB industry is constantly shifting to the mainland.

The IC carrier board is mainly used for the packaging of semiconductor chips, and has the characteristics of high technical defects.

Japanese, Korean and Taiwanese 四川耍耍网 manufacturers integrate the developed semiconductor industry and are currently replacing monopolies in the field of IC substrates. Domestic manufacturers urgently need to break through the IC substrate industry.

Growth momentum: 5G drives PCB demand, IC carrier board profitability improves. Among the company’s downstream application areas, revenue from communications accounts for 36%, which is the highest application area.

The company’s communications customers include top equipment manufacturers such as Huawei, ZTE, and Fiberhome, and have been working with customers for many years. They have deep customer relationships in the communications field, which will help them to benefit from the needs of the 5G R & D model.

The company entered the field of IC substrates six years ago, but due to its vulnerability, it has brought a breakthrough to the company’s overall performance.

After nearly 6 years of accumulation, the company’s IC carrier board projects are constantly improving, and profitability has improved significantly.

Estimate and rating We expect the company’s EPS for 2018-2020 to be 0.



24 yuan, the current sustainable corresponding PE is 37/29/22 times.

The comparable company’s PE in 2019 is 37 times, and the company’s current forecast is lower than this level. From the perspective of historical forecasts, the company’s current forecast level is also at a historically low level.

We give the company a corresponding PE of 37 times in 2019 with a target price of 6.

66 yuan, the first coverage, given a “buy” rating.

Risk reminders: Emerging demand for 5G and other issues is less than expected; IC carrier board production capacity and yield climb are less than expected; rising raw material prices erode profitability.

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