Zhaoyi Innovation (603986) Company Review: Changxin Storage Progress Exceeds Expectations to Expand New Growth Space

Zhaoyi Innovation (603986) Company Review: Changxin Storage Progress Exceeds Expectations to Expand New Growth Space

I. Overview of the event Recently, according to Hefei Industry Investment Group, “Anhui Daily”, recently, Changxin Storage Dynamic Random Access Memory Chip (DRAM) project was put into production; after customer verification, Changxin Storage 10nm first-generation 8Gb DDR4 DRAMProduct performance is up to standard, and customers are satisfied with the verification results.

It is expected that by the end of this year, the first chips will enter the hands of customers.

  Second, analysis and 夜来香体验网 judgment of Hefei Changxin ahead of the expected production in advance The market expects that Hefei Changxin can achieve mass production in Q4, but on September 20th, the Changxin 12-inch memory memory chip independent manufacturing project was announced for production.The first generation of 8Gb DDR4 synchronized with the international mainstream DRAM products has been verified by large domestic and foreign customers and officially delivered by the end of this year.

  Changxin will become the main storage foundry in China. Changxin ‘s 12-inch wafer processing and manufacturing base project has a total investment of 1,500 trillion yuan. It will be carried out in three phases./month.

DRAM accounts for 56% of the memory market share, and the US $ 100 billion market. China is the world’s largest market, but 95% is replaced by Samsung, Hynix, and Micron. The commissioning of the Changxin DRAM project marks the independent production capacity of strategic component DRAM.

  Changxin provides important assistance for the development of Zhaoyi. Hefei Changxin was jointly funded by Hefei Industry Investment and Zhaoyi Innovation. Zhu Yiming, chairman of Zhaoyi, is also the chairman and chief executive officer of Hefei Changxin.Easy Flash products formed a combination of two swords, from 2.5 billion US dollars Nor into the 100 billion US dollars DRAM market.

  Third, investment advice The company is the world’s leading supplier of memory chips and MCUs, benefiting from the independent and controllable trend of semiconductors, and is one of the national memory chip strategic platforms.

Due to NOR Flash’s funding and job hunting, the company cut into major international customers, and the domestic substitution of chips accelerated. Considering the impact of the acquisition of Shanghai Siliwei, we have revised the company’s performance. It is estimated that the EPS in 19/20/21 will be 2 respectively.

20/3.

34/4.

21 yuan, corresponding PE is 74X / 49X / 39X.

The reference SW semiconductor industry PE is estimated to be 179 times, maintaining the “recommended” level.

  4. Risk warnings: 1. Price fluctuations of raw materials such as wafers; 2. Price reduction of memory chips; 3. DRAM capacity climbs less than expected.