Tongfu Microelectronics (002156) Company Dynamic Comment: New Regulations to Increase Production Expansion and OEM and Package and Test Collaborative Production Expansion Is Expected to Start Long-term Semiconductor Upstream Cycle

Tongfu Microelectronics (002156) Company Dynamic Comment: New Regulations to Increase Production Expansion and OEM and Package and Test Collaborative Production Expansion Is Expected to Start Long-term Semiconductor Upstream Cycle
Event: The company’s proposed non-public offering of stock raised funds does not exceed 4 billion U.S. dollars for “the second phase of integrated circuit packaging and testing project”, “construction of intelligent packaging and testing center for automotive products”, “integrated circuit packaging and testing projects such as advanced CPU”And” replenish liquidity and repay bank loans “; the total investment of the project is about 54.08 million yuan, after the completion of production, contributes a total annual profit of about 5.04 billion. Fully lay out the downstream high-end application market, reduce financial costs and increase net profit margin: Nantong’s headquarters has expanded production to form an annual production capacity of 400 million BGA, FC 200 million, CSP / QFN 600 million, and wafer-level packaging8.40,000 pieces; used in smart terminal chips, mobile phone SOC, touch, IoT, 5G wireless, ADAS and other application markets.The Chongchuan plant has expanded its production capacity to produce 1.6 billion units per year of packaging and testing of automotive products. Aiming at the automotive electronics trend, it has gradually become a high-end automotive electronic product’s dependence on imports.Sutong Chaowei factory expanded production to form 44.2 million pieces / year of high-end integrated circuit products such as CPU / GPU, and cooperated with AMD7 nano chip products to continue to seize market share; AMD is the company’s largest customer, and the company acquired Chaowei Suzhou and PenangAfter that, the world ‘s most advanced 7-nanometer process CPU / GPU expands the packaging and testing capabilities. After the expansion, the company will continue to benefit from the increased market share of AMD products.The total investment of the above projects is about 43.8.8 billion, which will contribute to maximizing annual profits after reaching production.04 billion.In addition, the company’s asset-liability ratio was 58 as of Q3 2019.88%, financial expenses 1.55 ppm, this increase will optimize the company’s asset structure, reduce financial costs, and increase the company’s net interest rate. The company’s expansion project cooperates with upstream foundry high capital investment, and 武汉夜网论坛 5G commercial is expected to start a long-term semiconductor upward cycle: In terms of capital foundry for wafer foundry, will TSMC Capital invest 150 in 2020?US $ 16 billion; UMC Capital invests US $ 1 billion; SMIC pays US $ 3.1 billion on behalf of employees, an increase of more than 55%.The demand for 5G, servers, automotive electronics, and mobile phone optics / acoustics is fully restored, and the semiconductor industry is expected to start a long upward cycle.The company’s major customer AMD uses the Fabless model to cooperate with TSMC to produce 7nm chips. The expansion of upstream foundries such as TSMC will help AMD to seize the market. The company’s expansion of production capacity will accelerate and contribute to performance. Upgrade to “strongly recommended” level: We are optimistic about the continued increase 杭州桑拿 in AMD’s new product market share and the demand-driven momentum brought by 5G. It is expected that the company’s net profit attributable to mothers in 2019-2021 will be 0.19/5.44/9.08 thousand yuan, EPS is 0.02/0.47/0.79 yuan, corresponding to PE about 1857X, 65X, 39X, raised to “strongly recommended” level. Risk warning: AMD product expansion is less than expected; semiconductor demand growth is less than expected.

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