Zhaoyi Innovation (603986): Entering the 100 billion USD storage track

Zhaoyi Innovation (603986): Entering the 100 billion USD storage track

Event: On September 20th, Changxin Memory Dynamic Random Access Memory Chip (DRAM) project was put into production.

After customer verification, the performance of Changxin Storage’s 10-nm first-generation 8Gb DDR4 DRAM product has reached the standard, and the customer is satisfied with the verification result.

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

Changxin storage is put into production, and a first-class storage industry is realized.

The Changxin Casting Project is jointly invested by Hefei Industrial Investment (Holding) and Zhaoyi Innovation.

Changxin Storage’s 12-inch printer wafer manufacturing base project is the first domestic project with a 19-nanometer process as the starting point, and it is also the only DRAM project in mainland China with a complete technology, process and production operation team.

So far, the company has invested more than 2.5 billion US dollars in research and development, and about 20,000 wafers are used for research and development.

8Gb DDR4 has passed the verification of a number of large domestic and foreign customers, and it was officially delivered by the end of this year, and some low-power products for mobile terminals will also be put into production.

The designed capacity of the first phase is 120,000 wafers per month. It is expected that after the third phase is completed, the production capacity will reach 360,000 wafers per month.

The overall progress of the Changxin project exceeded expectations and strived to create a first-class storage industry development.

The construction of the first phase of the Hefei Changxin 12-inch project started in March 2017; the installation of the first phase of the plant was completed in January 2018; the 19-nanometer 8GB DDR4 project samples were rolled off at the end of 2018; the production line was officially put into operation in September 2019, and the overall production lineThe speed of construction ranks first in the industry.

On September 21, Changxin integrated circuit manufacturing base with an investment of over US $ 220 billion also signed at the 2019 World Manufacturing Conference: Changxin 12-inch wafer wafer project (150 billion), airport IC supporting industrial park project (西安耍耍网200 billionThe Hefei Airport International Town Project (50 billion) is expected to strengthen the industrial development effect and drive the development of upstream and downstream industrial chains.

The internal DRAM of Changxin’s storage area is blank, which is expected to break through the monopoly level of Korean and American companies.

Memory chips are the largest category in China’s chip market, with market demand reaching 30% of the world’s total, with imports amounting to nearly $ 30 billion, but with independent production capacity of zero.

DRAM is an important classification of memory.In 2018, its global market size reached US $ 83 billion, and 96% of the market was monopolized by three oligarchs: South Korea’s Samsung, South Korea’s Hynix, and Micron in the United States. Changxin’s DRAM breakthrough broke the 夜来香体验网 localizationSubstitution is significant.

Earnings forecasts and investment advice.

Due to the downward trend in the price of memory chips and the expansion of Zhaoyi’s innovative storage business, the company has achieved consolidation and overlapping. It is expected that the company’s revenue and the growth space brought by it will be 1 in 2019-2021.

81 yuan, 2.

53 yuan, 2.

88 yuan, corresponding to PE is 99, 71, 63 times.

Considering that Zhaoyi Innovation’s current estimation level is relatively high in the company’s historical estimation center and the industry’s average estimation level, ratings and target prices will not be given for the time being.

Risk reminder: the risk that the expansion of production capacity is less than expected; Siliwei promises that the performance will be less than expected.