Xingsen Technology (002436): Traditional PCB business stabilizes, IC package substrate breaks through

Xingsen Technology (002436): Traditional PCB business stabilizes, IC package substrate breaks through

Event: The company released its 2018 annual report and achieved total operating revenue of 34 in 2018.

73 ppm, a five-year increase of 5.

80%; operating profit 2.

76 ppm, an increase of 25 in ten years.

70%; net profit attributable to shareholders of the listed company.

15 ppm, an increase of 30 in ten years.


There are two major reasons for the increase in net profit: ① Hunan Yuanke, a subsidiary, replaced 2,143 in 2017.

930,000 yuan in 2018 to achieve a comprehensive turnaround loss slightly profit 49.

590,000 yuan, the British subsidiary exceptionally reduced losses by 1,003.

890,000 yuan, a decrease of 67.

97%; Shanghai Zefeng’s net profit increases by 1,059 every year.

470,000 yuan, IC packaging substrate business increased production capacity and yield gradually increased to achieve loss reduction.

② The company strengthened cost control, and the expense ratio increased and decreased by zero.

85 units.

PCB business income remained stable, military business orders and production capacity were released, turning losses into profits.

PCB business realized revenue 26.

32 ppm, a ten-year increase4.

19%; gross profit margin 30.

07%, slightly decreased by 0.

93 averages, the overall performance is stable.

Sales of military products 2

17 ppm, a decrease of 3 per year.

87%, mainly optimized the customer structure, replacing the military PCB business statistics.

The subsidiary Hunan Yuanke’s military solid-state storage products achieved revenue of 5,407.

790,000 yuan, an annual increase of 214.

59%, previously turned losses and slightly profit 49.

590,000 yuan.

The semiconductor business has improved significantly, becoming an official Samsung supplier.

IC package substrate business income 2.

3.6 billion, an increase of 64 in ten years.

05%, the expansion area of storage products accounted for more than 70%, and the throughput reached full production.

The annual report disclosed: “September 2018 passed Samsung certification and became Samsung’s official supplier (the only mainland mainland IC package substrate supplier).”

The annual report reveals that the global market for IC packaging substrates is about 8 billion to 10 billion U.S. dollars. The top ten suppliers such as Japan, Taiwan, and South Korea have replaced 81% of the global market share.The IC package substrate business will also shift inward.

The company’s significance as a supplier of Samsung IC packaging substrates proves the company’s ability and level in the IC packaging substrate industry and lays a solid foundation for the future localization of the semiconductor industry.

Investment suggestion: It is expected that the company’s net profit attributable to shareholders of listed companies in 2019-2021 will be 2 respectively.

8.3 billion, 3.

5.4 billion, 4.70 ppm, with annual growth rates of 31.

9%, 24.

9%, 32.


The first coverage gives Buy-A an investment rating with a 6-month target price of 7.

6 yuan, equivalent to 40 times 杭州桑拿 PE in 2019.

Risk reminder: macroeconomic growth rate, the decline in demand for the semiconductor IC substrate industry, and the progress of major customer business is gradually expected.