Midea Group (000333) in-depth research report: Xinxin dances to the head of Rong

Midea Group (000333) in-depth research report: “Xinxin” dances to the head of Rong
Seeing the clouds: the development process of Fupanmei, the industry leader that is constantly changing.Midea Group is a technology group company integrating consumer electronics, HVAC, robots and automation systems, and intelligent supply chain.  The development of Midea has gone through three stages. During the first stage, from 1993 to 2000, Midea made use of the first-mover advantage of production technology that entered the air-conditioning field earlier to accelerate its development. At the same time, it rapidly expanded its business lines through mergers, acquisitions, and cooperation to gain popularity in the domestic market; In the second stage, from 2001 to 2011, Midea continued to improve its management and operating structure, and continuously improved its product and brand power. At the same time, Midea began to build its own channels to improve the market channel structure and strengthen its channel control. The third stage was 2012-2018.Midea Group promotes a comprehensive strategic transformation with “product leadership, efficiency-driven, global operations” as the three main axes, and gradually moves from a leading Chinese home appliance company to a global leading technology group.After years of development, Midea Group has been constantly changing, proactively discovering opportunities and innovating continuously. It currently ranks in the forefront of multiple categories such as white goods and small appliances. Leading new standards: “new architecture”-inject long-term development vitality.Midea Group’s organizational structure is efficient and reasonable. At present, it has clearly defined a three-tier structure system, that is, business units and business entities, collaborative platforms, layout departments, and business unit structure can improve decision-making efficiency and execution, and effectively stimulate organizational vitality.In addition, Midea Group has a complete and effective incentive mechanism. It uses equity to bind the merger with the company’s long-term value growth responsibility.development of. Seek up and down: “New Channel”-deepen reform and improve efficiency.Channel competition in the white goods industry is currently intensifying. In order to adapt to changes in the channel environment and improve the company’s operating efficiency, Midea Group actively embraces channel changes.On the online front, it reached strategic agreements with third-party e-commerce platforms such as Tmall Jingdong, and at the same time piloted a network approval model to directly connect with retail terminals.In terms of offline, we will limit the channel level, actively expand and establish new retail channels, and create online and offline data fusion to improve overall channel efficiency.In addition, based on the good organizational structure of the division system, Midea Group fully implements the “T + 3” operating model and actively optimizes the industrial chain.Under this model, the company ‘s overall turnover rate was improved by “determining production with sales”, while streamlining SKUs was conducive to strengthening order and inventory management. Another way: “New Market”-Layout of overseas markets, KUKA opens a second track.For a long time, Midea Group has continuously supplemented its technical shortcomings through continuous mergers and acquisitions, expanded sales channels and increased product categories.The company’s scale has grown rapidly to US $ 100 billion, and the industry chain has also evolved from the original single product to today’s multi-category multi-brand products, and has established synergies in the global market.In order to accelerate the deployment of overseas markets and at the same time promote the strategic transformation of “smart homes and smart manufacturing”, Midea Group offered to acquire the German KUKA Group, which marked Midea as a leading technology company in the field of robotics and automation in China and the world.Driven by the business in China, it is expected that KUKA will gradually resume its growth in the future, and the future of Midea is expected to transform into a strong transformation of KUKA into a technology group. Hundred feet: Foreign selective overlaps are highly deterministic, and the US estimates are promising.With the gradual implementation of policies to encourage foreign investors to invest in A-shares, the convenience of foreign investors in participating in the A-share market has been greatly improved.  As a core asset that is ready to be favored by foreign countries, Midea 南京夜网论坛 Group was temporarily removed from the global standard index series by MSCI on January 24, 2020, because foreign investors held more than 28% of the shares.The depth of gradual reforms in the future, and the clarification of the way to deal with stocks that have reached the excess shareholding limit in the interconnectedness mechanism has gradually become clearer. Midea Group ‘s estimated level has room for improvement and promotes alignment with overseas comparable companies (Daikin Industrial: PE in 2020)23 times).In addition, compared with leading domestic and foreign leading companies, Midea Group has excellent financial indicators, high performance certainty, stable dividends and a high proportion.At the same time, the company’s corporate governance structure is excellent, incentives are perfect, and the introduction is highly consistent with shareholders’ interests. It is expected that there is room for improvement in the future, even in the long run. Investment suggestion: We maintain the company’s forecasted net profit attributable to its parent for 19/20/21 to be 24/271/309 billion, corresponding to 14/13/11 times the corresponding PE.As a leader in the home appliance industry, the company’s multi-segment market share is at the forefront of the industry, and its product structure is continuously optimized, its brand matrix is improved, its operating efficiency is continuously improved, its incentive mechanism is improved, its competitive advantage is obvious, and its long-term development is worth looking forward to.Based on the above, raise the target price to 70 yuan (original target price: 62 yuan), corresponding to 18 times PE in 20 years, and maintain a “strong push” rating. Risk warning: terminal demand is less than expected; raw material prices fluctuate sharply; overseas market expansion risks.

Zhichun Technology (603690): The 2018 annual report and 2019Q1 gradually formed a strategic layout of the trinity of equipment, materials and processes around the semiconductor industry

Zhichun Technology (603690): The 2018 annual report and 2019Q1 gradually formed a strategic layout of the trinity of equipment, materials and processes around the semiconductor industry
Company announcement: 1) Release of 2018 annual report: 2018 revenue realization6.740,000 yuan, an increase of 82 in ten years.6%, net profit attributable to mothers is 32.44 million, 34 per quarter.2%, net profit after deduction is 28.71 million yuan, every 30 years.7%; 18Q4 single quarter revenue 3.530,000 yuan, an increase of 146 in ten years.4%, an increase of 168% month-on-month, net profit attributable to the mother is 2.19 million yuan, a decrease of 62% per second; 2) The first quarter report of 2019 is released, and the revenue is 1.160,000 yuan, an increase of 57 in ten years.7%, net profit attributable to mothers was 11.43 million yuan, an increase of 441 over the same period last year.16%.18-year revenue exceeded expectations, profit exceeded expectations, and profit in 19Q1 exceeded expectations. The rapid revenue growth is mainly due to the company’s success in becoming a qualified supplier of advanced domestic processes in the field of integrated circuits, and large customer orders have grown rapidly.In 2018, 800 million new high-purity industrial system orders and wet cleaning equipment orders1 were added.100 million, gradually adding 9.10,000 yuan, an increase of 35 in ten years.82%; In addition, as the company expanded its cleaning equipment products and expanded R & D in 成都桑拿网 the wet process, R & D expenses increased by 23 million yuan in 2018, and the R & D expense ratio was 5.41%, R & D expenses in 20173.6%, resulting in a decrease in the company’s return to net profit.If the effects of research and development expenses, listing subsidies and fair incentive costs are restored, the net profit attributable to the parent will increase by approximately 45% per year.We believe that in 2019, the company’s initial investment will enter the harvest period. In 19, it plans to obtain 1.5 billion supplementary orders and confirm revenue of 1 billion U.S. dollars. It ranks the company’s 18-year plan. The growth rate is 100% from the continued increase in the percentage of semiconductor revenue. The gross profit margin is slightlyThere is contraction.Due to the company’s competitive advantage, the product quantity is slightly discounted, and the limit on the price of materials received at the cost end has reduced the overall gross profit margin by 11pct to 28%, mainly due to the decline in the gross profit margin of the semiconductor industry.The gross profit margin of the sector was 25%, a decrease of 15pct. The gross profit margin of the non-semiconductor industry (including photovoltaic, LED, medical, etc.) was 35%, which was equivalent to 38% in 2017.The company’s revenue from the semiconductor sector in 20184.39 trillion US dollars, a year-on-year increase of 109%, accounting for 65%, the company’s business layout around semiconductors has achieved initial results. The business of wet cleaning equipment is progressing smoothly, and customer orders are abundant. New business orders in 2018 were about 1.1 billion yuan, some products are expected to recognize revenue in 2019.According to SEMI data, the global semiconductor cleaning equipment market size was US $ 2.6 billion in 2015, and will grow to 32 by 2017.According to ACMR estimates, by 2020, cleaning equipment will reach 3.7 billion US dollars, and the replacement cleaning process will continue to increase. Driven by the increase and improvement of new plant lines, the market demand will increase in the next 5 years.The company’s tank equipment has been recognized by many high-quality customers. Wet cleaning equipment has received formal orders from SMIC, IWC, TI, Yandong, China Resources and other users. The follow-up single-chip cleaning equipment is also in the verification process. It is expected to be 19 yearsExpect to get orders. Gradually form a strategic layout of the trinity of equipment, materials, and technology around the semiconductor industry, maintaining the “overweight” level.The Qidong plant is about to be put into use, and subsequent wet-process equipment will be gradually moved to Qidong production. A subsidiary in Hefei will be established through a subsidiary company to Micro Semiconductor. It will mainly deploy wafer recycling and component cleaning businesses, and also deploy semiconductor equipment related chemicals and consumables.The company issued shares and raised funds to acquire Bohui Technology, which has been approved by the China Securities Regulatory Commission. All new shares have been registered and listed. The total share capital is currently 2.5.8 billion shares are expected to be consolidated in April 2019.Newly added the technical part of the wave forecast in the profit forecast (adjusted the 19-20 year forecast, the original forecast was 1.45/1.97 ppm, another 21 years), and the net profit is expected to be 1 in 2019-2021.32/2.72/3.42 trillion, EPS is 0.51/1.05/1.33 yuan / share.