Hite High-tech (002023): In-depth layout GAAS and GAN continue to focus on customer expansion and order landing

Hite High-tech (002023): In-depth layout GAAS and GAN continue to focus on customer expansion and order landing

The third-generation compound semiconductor field is in-depth layout. It is expected that the operating situation will be good in 2020. Rotor company Haiwei Huaxin is the first echelon of domestic GaN chip patent technology.

The company’s production line design meets the higher performance indicators required by the shareholders of CLP Tech to a certain extent. The process setting refers to advanced technology. At present, the company has completed the technological development of multiple process routes. RF, optoelectronics, power electronics, etc. belong toThe company focuses on expanding areas.

According to the annual report, the company has reached the peak of depreciation. Through the introduction of customers, product sizing and the rhythm of mass production, it is expected that the capacity utilization rate will increase in 2020 and the operating conditions will substantially improve.

The military leads the people, and the military and civilians advance together. We will achieve billion-level orders in 2019. In the future, we can expect that GaN technology and tactics will mainly replace the military radar field. It is the first choice of high-frequency and high-power microwave devices and gradually extends to the civilian product field.

In the special field, the company is a wafer manufacturer. Its products are mainly used in the radio field and has made major breakthroughs in aviation and other platforms. According to investor relations records, the company has obtained 18 targeted projects for products, which are expected to be completed in 2 years.Achieve mass production and become a finalization project for the equipment department. According to investor relations records, the company has received 20% of orders for designated tasks in January 2020.

In addition, according to the announcement, the company has signed contracts with relevant units in the satellite field to provide radio frequency chips and foundry services. With the continuous advancement of satellite Internet construction, it is expected to become the company’s new growth pole in the future. In the civilian business, the company’s 5G macro base station radio frequency GaN Major technological breakthroughs have been made in products, and they have passed reliability tests and 重庆耍耍网 passed the ability to provide foundry services for base station radio frequency products. In power electronics, silicon-based gallium nitride power device chips have achieved small-volume mass production, which is the leading domesticAccording to investor relations records, the company will realize the first domestic 6-inch VCSEL production line in the field of optoelectronics in 2019.

2020 is the first year of GaN. Continue to pay attention to downstream civilian applications. GaN is often detected by transmitter radar, communication substrates, and power devices.

On February 13, Xiaomi released a GaN technology TypeC 65W charger. In the future, GaN power electronic devices or more brands will be sold. According to Yole’s prediction, the GaN power business may reach about 4 by 2023.

USD 2.3 billion, with a CAGR of 93% in 2017-2023.

In addition, the construction of 5G base stations will be one of the core driving forces for the growth rate of gallium nitride. According to the research of Cyrus, the GaN RF device market size in 2018 will be less than 2 billion US dollars, and maintain a CAGR of 23%. It is expected that the market size in 2023 will beAmounted to $ 1.3 billion.

Investment suggestion: The company’s business conversion has entered a comprehensive upward channel. Other high-end equipment manufacturing businesses follow the model list and the volume is fast. After years of layout of the microelectronics business, the production capacity continues to increase, which will become an important growth point for the company’s future performance.
We expect the company’s net profit for 2019-2021 to be 0 respectively.

67, 1.

52, 2.

41 trillion, corresponding estimates are 237, 104, 66 times respectively, maintaining the “Buy-B” level.

Risk warning: military products orders are less than expected; microelectronics market expansion exceeds expectations.