Discrete semiconductor devices are the foundation of electric power and electronic products. It is widely used in large quantities in fields such as consumer electronics, automobile electronics, electronic devices and boards, industry and automation control, computers and related equipment, network and telecommunications. According to this analysis, China's discrete semiconductor device industry has been growing pretty quickly in the past decade, benefitting from the transfer of international electronics manufacturing centers and downstream demand for computers, telecommunications and consumer electronics. The production volume of discrete devices in China exceeded 600 billion in 2016, increasing by 10% YOY.
Semiconductor materials support electronic information industries such as telecommunications, computer, information appliances and network.
According to the author, after a decade of fast growth of the electronics industry, China's semiconductor material market has become the world's largest with a market size of over USD 9 billion, accounting for more than 20% of the world. Different from the semiconductor devices market, the material market is highly segmented and the size of a single market is small. As a result, semiconductor materials usually serve as only one of many businesses of manufacturers.
Changing constructions of semiconductor devices and more complicated manufacturing processes have included more chemical elements in the semiconductor industry. In 1986, the industry involved only 10 elements from the periodic table. In 2016, the number of elements increased to 50. Semiconductor materials have been developing with the advances of semiconductor technologies.
In this report, the author analyzes 9 discrete semiconductor devices and semiconductor material manufacturers listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1) financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders' equity.
(1) Financial Indexes
- Earnings per Share
- Book Value per Share (BPS)
- Sales per Share (SPS)
- Net Cash Flow per Share from Operations
- Net Cash Flow per Share (CNY)
- Return on Net Worth
- Net Profit Margin on Total Assets
- Return on Invested Capital (ROIC) (%)
- Gross Profit Margin on Sales (%)
- Net Profit Margin on Sales (%)
- EBIT Margin (%)
- EBITDA Margin (%)
- Debt to Asset Ratio (%)
- Total Asset Turnover (times)
- Cash/Operating Income Received from Sales of Goods or Services
- YOY Growth Rate of Operating Revenue (%)
- YOY Growth Rate of Operating Profit (%)
- YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)
(2) Summary of Income Statement
- Gross Revenue (CNY, million)
- Total Operating Costs (CNY, million)
- Revenue (CNY, million)
- Operating Profit (CNY, million)
- Total Profit (CNY, million)
- Net Profit (CNY, million)
- Net Profit Attributable to Shareholders of Parent Company (CNY, million)
- Non-recurring Items (CNY, million)
- Net Profit Deducting Non-recurring Items (CNY, million)
- R&D Costs (CNY, million)
- Earnings Before Interest and Tax (EBIT) (CNY, million)
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)
(3) Summary of Balance Sheet
- Liquid Asset (CNY, million)
- Fixed Asset (CNY, million)
- Long-term Equity Investment
- Total Assets (CNY, million)
- Liquid Liability (CNY, million)
- Non-current Liability (CNY, million)
- Total Liability (CNY, million)
- Capital Reserve (CNY, million)
- Surplus Reserve (CNY, million)
- Undistributed Profit (CNY, million)
- Shareholders' Equity (CNY, million)
- Equity Attributable to Shareholders of Parent Company (CNY, million)
(4) Summary of Cash Flow Statement
- Cash Received from Sales of Goods and Services (CNY, million)
- Cash Flow from Operations (CNY, million)
- Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
- Cash Paid for Investments (CNY, million)
- Cash Flow from Investments (CNY, million)
- Cash Received from Investors (CNY, million)
- Cash Received from Borrowings (CNY, million)
- Cash Flow from Financing (CNY, million)
- Net Increase of Cash and Cash Equivalents (CNY, million)
- Cash and Cash Equivalents, End of Period (CNY, million)
- Depreciation and Amortization (CNY, million)
Companies in the report:
1 Jilin Sino-Microelectronics Co., Ltd. (600360.SH)
2 Suzhou Good-Ark Electronics Co., Ltd. (002079.SZ)
3 Tech Semiconductors Co., Ltd. (300046.SZ)
4 Yangzhou Yangjie Electronic Technology Co., Ltd. (300373.SZ)
5 Grinm Advanced Materials Co., Ltd. (600206.SH)
6 Infotmic Co., Ltd. (000670.SZ)
7 Ningbo Kangqiang Electronics Co., Ltd. (002119.SZ)
8 Tianjin Zhonghuan Semiconductor Co., Ltd. (002129.SZ)
9 Beijing Sevenstar Electronics Co., Ltd. (002371.SZ)
- Beijing Sevenstar Electronics Co., Ltd. (002371.SZ)
- Grinm Advanced Materials Co., Ltd. (600206.SH)
- Infotmic Co., Ltd. (000670.SZ)
- Jilin Sino-Microelectronics Co., Ltd. (600360.SH)
- Ningbo Kangqiang Electronics Co., Ltd. (002119.SZ)
- Suzhou Good-Ark Electronics Co., Ltd. (002079.SZ)
- Tech Semiconductors Co., Ltd. (300046.SZ)
- Tianjin Zhonghuan Semiconductor Co., Ltd. (002129.SZ)
- Yangzhou Yangjie Electronic Technology Co., Ltd. (300373.SZ)
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.