Xinxing (3037-TW) After the fire at the Shanying plant in Taoyuan, foreign investors continued to increase the target price. They are optimistic about the strong mid- and long-term demand for ABF substrates. The latest report from the US foreign capital reiterated the purchase of Xinxing. The target price was raised from RMB 95 to RMB 160. Foreign investors have given the highest target price for Xinxing, and it is estimated that the profit will exceed 10 billion yuan in the following year, reaching 11.576 billion yuan, and the net profit per share is estimated at 7.93 yuan
Foreign investors pointed out that under the impact of the fire at the Taoyuan Shanying plant in Xinxing at the end of October, it is estimated that the gross profit margin in the fourth quarter of 2020 will reach 14%. It is optimistic that Xinxing and other customers will benefit from the use of high-performance substrates for American CPU customers. Under tight pressure, more customers are expected to seek stable supply sources of qualified substrate suppliers.
American foreign capital pointed out that it is estimated that there will be at least 26% ABF shortage in the next few years. Xinxing is the leader of ABF carrier in Taiwan. With close relationships with customers, the risk of expansion is low. With the tight industrial production capacity, Xinxing will continue to benefit In the long term, Xinxing is still optimistic.
Xinxing’s net profit after tax in the third quarter of 2020 was 1.595 billion yuan, an annual increase of 26.5%, and net profit per share was 1.09 yuan; the cumulative after-tax net profit for the first three quarters of 2020 reached 3.412 billion yuan, which has surpassed last year’s full year of 3.259 billion yuan, net profit per share It is 2.34 yuan. American foreign investment estimates that Xinxing will have a net profit of 5.203 billion yuan after tax for 2020, and a net profit of 3.57 yuan per share.
Foreign investment estimates that Xinxing’s profit will grow rapidly in 2021 and 2022, with growth rates of 33.2% and 66.9%, and net profit per share is estimated to reach 4.75 yuan and 7.93 yuan.
Xinxingming (24) will hold a corporate briefing meeting to announce 2020 results and outlook.
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