Zhongke Shuguang (603019) semi-annual report comment: Interim report results increase as expected and autonomous Haiguang chip is expected to correct the impact in the long

05/22/2020 0 Comment

Zhongke Shuguang (603019) semi-annual report comment: Interim report results increase as expected and autonomous Haiguang chip is expected to correct the impact in the long

Event: The company announced that it will realize operating income in the first half of 201946.

07 million yuan, an increase of 35 in ten years.

28%; Net profit attributable to shareholders of listed companies.

30,000 yuan, an increase of 39 in ten years.

14%; net profit attributable to shareholders of the listed company after deduction.

30,000 yuan, an increase of 44 in ten years.


Meet market expectations.

The server business led the growth, and the mass production of autonomous Haiguang chips went smoothly in the first half of the year.

1) Revenue was mainly driven by high-end computer projects, reaching 38 in the first half.

2.5 billion, an annual increase of 38.


The gross profit margin is 10.

04%, down from the same period last year.

The 77 singles were mainly due to the higher growth of corporate customers and the increase in the proportion, which affected the overall gross profit level.

2) The company purchased raw materials from Haiguang in this period.

4.5 billion US dollars, is expected to be Haiguang’s independent chips, corresponding to the allocation of about 50,000 pieces, supporting the successful mass production of chips.

R & D continued to be highly invested, and costs remained stable during the period.

1) R & D expenses for this period are 2.

68 ppm, an increase of 62 in ten years.


In the first half of 2019, the company obtained 37 new patent authorizations, including 25 invention patent authorizations.

2) Selling expenses are 1.

89 ppm, an increase of 15 in ten years.

17%, the management cost is 1.

01 billion, an annual increase of 30.

40%, consistent with business revenue growth.

Finance costs are zero.

840,000 yuan, an increase of 40 in ten years.

73%, mainly due to the accrual of convertible bonds.

Being included in the “physical list” affects core chip procurement, resulting in short-term business pressure.

1) On June 21st, local time, the US Department of Commerce announced the official replacement of five Chinese entities with a so-called “entity list”, including Zhongke Shuguang, Tianjin Haiguang, Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology and Wuxi JiangnanInstitute of Computing Technology.

2) In 2018, the company’s high-performance computer projects accounted for 80% of total revenue, of which general-purpose servers accounted for more than 80%.

As domestic general-purpose server chips are almost all Intel Xeon series, it is estimated that this year Dawning’s automatic chip servers account 南宁桑拿 for about 40%.

Therefore, it will still have an impact on the company’s general server business.

3) It is expected that the CPU of the supercomputing project will be gradually replaced by the autonomous Haiguang chip, but it will still be restricted by the US company “Grofont”, and the new project will also be affected.

4) According to the financial report, the inventory of raw materials for the company in 2019H1 is 11.

2.5 billion, the initial is 8.01 billion.

It is expected that the company will actively stock up in the second quarter, and there will be positive changes in the chip reserve.

In the long run, the autonomous Haiguang CPU is expected to replace the impact, and the core architecture of Encore and the country is more direct.

1) Haiguang Company currently integrates domestic and international top-level technology solutions, design talents and policy resources, and is expected to have initially implemented independent chip research and development capabilities.

However, the tape-distribution partner American company “Grofont” is restricted by this policy, and subsequent chip processing conversions will be transferred to the Asia-Pacific region. The partners are mainly TSMC, SMIC and Samsung.The cycle is half a year.

2) Haiguang has released CPU and GPU architecture solutions. The product line can even be extended to the C terminal in the future. In the long term, the business development prospect is optimistic.

3) After being included in the list, Huawei has also verified the scarcity of chips and supercomputing technologies. As a core company of Encore and technology to rejuvenate the country, the company has global technological competitiveness.

Downgrade to “overweight” level.

According to the key assumptions and the 2019 Interim Report, the profit forecast is adjusted, and the operating income for 2019-2021 is expected to be 97.

9.7 billion, 111.

09 billion and 135.

7.3 billion (previously 125.

8.1 billion, 154.

3.3 billion and 187.

9.4 billion), net income attributable to mothers was 5.

7.0 billion, 7.

4.7 billion and 10.

5.8 billion (previously 7).

5.1 billion, 12.

7.6 billion and 19.

3.7 billion).

Downgraded from “Buy” to “Overweight”.

Risk reminders: increased competition in the server industry; less-than-expected chip mass production; increased trade friction risks; and risks that forecast assumptions differ from actual conditions.