Comments on major issues of the hottest Zhonghuan

2022-08-24
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Comments on major issues of Zhonghuan Co., Ltd. (002129): the curtain of hybrid reform opens, and China's Silicon giant rises [Li Jia team of Huachuang machinery]

comments on major issues of Zhonghuan Co., Ltd. (002129): the curtain of hybrid reform opens, and China's silicon giant rises [Li Jia team of Huachuang machinery]

original title: (002129) comments on major issues: the curtain of hybrid reform opens, Chinese silicon chip superstar is rising [Li Jia team of Huachuang machinery] source: Huachuang machinery

great potential · small potential

Li Jia team of Huachuang machinery thank you for your attention

Li Jia/Lupe/Zhao Zhiming/Bao Yuejiao

key points of investment

matters:

on January 19, Zhonghuan Co., Ltd. issued the announcement on the progress of the reform of mixed ownership by controlling shareholders, On January 19, 2020, the company received the notice from the controlling shareholder Tianjin Zhonghuan Electronic Information Group Co., Ltd. (hereinafter referred to as "Zhonghuan group") and its shareholders Tianjin Jinzhi state owned capital investment and Operation Co., Ltd. (hereinafter referred to as "Jinzhi capital", holding 51% equity of Zhonghuan group) and Tianjin Bohai State owned Assets Management Co., Ltd. (hereinafter referred to as "taking two 16 digit counters in the timer Bohai State owned assets") , holding 49% of the equity of Zhonghuan group), issued the notification letter on the pre disclosure of the mixed tax reform information of Zhonghuan group. Jinzhi capital and Bohai state-owned assets plan to pre disclose the information of the property right transfer project of their shares in Zhonghuan group in Tianjin property right trading center on January 20, 2020. They plan to jointly transfer their shares in Zhonghuan group, with a total transfer ratio of 100%

comments:

the curtain of mixed reform has opened, opening a new chapter in governance. According to the announcement, Jinzhi capital and Bohai state-owned assets plan to pre disclose the information of the property right transfer project of their holdings of Zhonghuan group in Tianjin property right trading center on January 20, 2020. They plan to jointly transfer their holdings of Zhonghuan group, with a total transfer ratio of 100%. We believe that if the progress is smooth, the equity transfer is expected to be fully implemented in the first quarter of this year, and the smooth implementation of the mixed reform is expected to promote the group to further change to a market-oriented governance model. On the one hand, it will optimize corporate governance, promote market-oriented operations, and pay more attention to economic benefits, so as to improve capital utilization efficiency; On the other hand, it will help to realize the effective integration of human, technological and organizational resources and the synergy and complementarity of management mechanisms, improve the incentive system, fully stimulate the vitality of innovation, expand the advantages of human capital, and enhance the overall competitive strength

m12 the industrialization process is accelerated, and the fifth phase of production expansion accelerates the growth of photovoltaic business. M12 effectively saves costs, improves equipment turnover, and has a significant effect in reducing costs and increasing efficiency. We have learned from our research that at present, the recognition and acceptance of large silicon wafers in all links of silicon wafers, battery wafers, and component ends are gradually improving, and the industrial chain synergy is beginning to appear. Downstream manufacturers such as, aixu, Trinasolar, and Tongwei are actively deploying. The company's phase V project plans to produce 25gw M12 silicon wafer. Through the optimization of the design, manufacturing, organization and management mode of the smart chemical plant, it injects the thinking of the semiconductor system of photovoltaic products, supports the continuous upgrading of the photovoltaic industry, and meets the needs of high-efficiency and diversification of photovoltaic products. It is expected that a shipment of about 16GW will be formed in 2020. We believe that with the implementation of expansion projects and the release of high-quality production capacity, the company's leading position in the field of photovoltaic silicon wafers will become more prominent

with accumulation, the semiconductor silicon chip leader set sail. The company has a mature and stable supply capacity of 8-inch semiconductor silicon chips. According to Qiao Jinliang, vice president of Beijing Research Institute of chemical industry and professor level senior engineer, the customer certification of 12 inch silicon chips has been steadily promoted. At present, Yixing 8-inch production line has been partially put into operation. It is estimated that the company's 8-inch silicon wafer production capacity is expected to reach 1.05 million pieces/month in 2021, which will form an absolute leading edge in the domestic 8-inch silicon wafer field. Considering the current production line construction, we predict that Yixing's 12 inch production line may be put into operation in the first quarter of this year and is expected to form a shipment within the year. We believe that with the expansion of production capacity, the scale advantage and leading position of the company in the semiconductor field are expected to be further expanded, and the growth space of the semiconductor business is expected to be further opened

profit forecast: we maintain the expectation that the company will realize a net profit attributable to the parent company of 1.138, 1.775 and 2.462 billion yuan from 2019 to 2021. Taking into account the impact of the new policy of fixed increase, we will not consider the changes in equity after the additional issuance, corresponding to eps0.41, 0.64 and 0.88 yuan, pe35, 22 and 16 times. As the company's photovoltaic and semiconductor silicon business is in the stage of rapid growth, the company is given a target valuation of 30 times in 2020, with a corresponding target market value of 53.25 billion yuan and a target price of 1.914 billion yuan in 2020, maintaining the "strong promotion" rating

risk tips: downstream demand fluctuations; Price fluctuation of photovoltaic and semiconductor silicon wafer; The progress of customer certification was less than expected

key reports collection of Huachuang machinery

[mechanical science and Technology Innovation Tour series report] one of the mechanical science and technology innovation tours --: Based on machine vision, help intelligent manufacturing. The second mechanical science and Technology Innovation Tour --: leading companies lead, the dawn of semiconductor equipment localization has appeared. The third mechanical science and Technology Innovation Tour --: high-quality lithium battery rear section equipment. The fourth mechanical science and Technology Innovation Tour --: leading panel testing equipment manufacturer, The fifth tour of mechanical science and technology innovation marching towards semiconductor testing --: the sixth tour of mechanical science and technology innovation of the promoter of the localization of EMU brake pads --: the seventh tour of mechanical science and technology innovation of the world's leading provider of rail transit control system solutions --: the pioneer of the localization of urban rail CBTC system

[oil service series report]

Schlumberger's development Revelation - special report on oil and gas drilling and production service sub industry

oil price stabilizes, Phoenix Nirvana in the oil service industry

[rail transit series reports] in depth report: Tiandi Renhe, Jinxiu CRRC

total force freight incremental action, New opportunities for railway freight equipment - railway information experts in the minutes of the strategic meeting of the railway freight equipment industry depth

<2019 rail transit bureau year | railway information system and operation and maintenance market development trends

<2019 rail transit bureau year | steel market demand toughness What will low inventory superimposed infrastructure overweight bring?

transportation market of the "2019 rail transit change year" strategy meeting minutes | railway reform will enter a harvest year

subway experts of the "2019 rail transit change year" strategy meeting minutes | development trend of small and medium-sized rail transit after the new deal

macro of the "2019 rail transit change year" strategy meeting minutes | 2019 infrastructure space outlook and conjecture

"2019 rail transit change year" Summary of the strategy meeting: Machinery | rail transit industry chain 2019 investment highlights

[semiconductor series report]

depth of semiconductor equipment: from the east wind, "core fire" will start a prairie fire

depth of semiconductor silicon wafer equipment: the gap between supply and demand of silicon wafer is expanding, and the trend of equipment localization has come.

avenue to "inspection", "Test" to help achieve success - semi conducting Jinan experimental machine this utility model large-diameter high-pressure pipe static pressure experiment body detection equipment depth

[company depth report]

Zhonghuan shares (002129) depth (Part 1): the industry is poised for a new round of growth, domestic silicon wafers are riding the wind

Zhonghuan shares (002129) depth (Part 2): the industry is poised for a new round of growth, Domestic silicon wafers ride the wind

(002430) depth: continuous growth based on excellent returns

hang Yang shares (002430) depth: looking for industry leaders with boundless expansion

Zhonghuan shares (002129) depth: large silicon wafers are thick and thin, photovoltaic continues to be brilliant, semiconducting material leaders sail with the wind

(603698) depth: neglected high-end manufacturing targets, The underestimated coal gasification faucet

depth: benchmark the overseas faucets and explore the road to the rise of "China's Applied Materials"

depth: from the layout period to the harvest period, the explosion potential of private detection faucets is expected to be released

depth: Lock NB IOT in advance, Take off smart gas faucet

in depth report: smart parking ecosystem, equipment operation integration starts a new journey of growth

investment rating definition industry investment rating Description: recommendation: it is expected that the industry index will increase by more than 5% over the benchmark index in the next months; Neutral: the expected change range of the industry index in the next months is -5% - 5% relative to the benchmark index; Avoidance: the industry index is expected to decline by more than 5% over the benchmark index in the next months. Description of the company's investment rating: strong promotion: it is expected to exceed the benchmark index by more than 20% in the next six months; Recommendation: it is expected to exceed the benchmark index by 10% - 20% in the next six months; Neutral: it is expected that the relative benchmark index will change by -10% - 10% in the next six months; Avoidance: it is expected that the relative decline of the benchmark index will be between 10% and 20% in the next six months. Disclaimer this report is only for the use of clients of Huachuang Securities Co., Ltd. (hereinafter referred to as "the company"). The company will not treat the recipient as a customer because of receiving this report. The source of the information contained in this report is considered to be reliable, but the company does not guarantee its accuracy or completeness. The information, opinions and conjectures contained in this report only reflect the judgment of the company on the date of issuing this report. In different periods, the company may issue reports that are inconsistent with the information, opinions and assumptions contained in this report. The company performs the disclosure obligation within the scope of knowledge. The contents and opinions in the report are for reference only and do not constitute the company's bid or inquiry for specific securities trading. The information contained in this report does not constitute personal investment advice on the securities involved, nor does it take into account the special investment objectives, financial conditions or needs of individual clients. Customers should consider whether any opinions or suggestions in this report conform to their specific conditions, make investment decisions independently and bear investment risks by themselves. Any written or oral commitment to share securities investment income or losses in any form is invalid. The price and value of investments mentioned in this report and the expected income from these investments may fluctuate. The copyright of this report is only owned by our company, and we reserve all rights to this report. Without the prior written permission of the company, no organization or individual may reproduce, copy, publish or quote any part of this report in any form. If it is quoted and published with the permission of the company, it shall be used within the permitted scope, and the source shall be indicated as "Huachuang securities research", and no quotation, abridgement or modification contrary to the original intention shall be made to this report. The securities market is a market with constant risks. Please be sure to have a clear understanding of the profit and loss risk and seriously consider whether to conduct securities trading. There are risks in the market, so investment needs to be cautious

please pay attention to Huachuang machinery

Team Introduction Team Leader introduction: Director Assistant, team leader, chief analyst: Li Jia

Master of economics, University of Birmingham. He joined Huachuang Securities Research Institute in 2014. In 2012, the best analyst of new fortune ranked sixth, the best analyst of crystal ball seller ranked fifth, the best analyst of Taurus ranked fifth, the best analyst of new fortune ranked fourth in 2013, the best analyst of crystal ball seller ranked third, the best analyst of Taurus ranked third, the best analyst of new fortune ranked fifth in 2016, and the best analyst of new fortune ranked sixth in 2017. In 2017, the first China Securities analyst golden wing award ranked first in the mechanical equipment industry

team member: Senior Analyst: Rupert, master of economics, London School of economics. He joined Huachuang Securities Research Institute in 2014. two

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