Expansion of semiconductor and panel factories, Fanxuan and other 6 major Taiwan equipment factories have more than 230 billion orders in hand

April 27, 2022

Core Tip: Benefiting from the strong momentum of expansion of semiconductor and panel factories, the top six equipment companies in Taiwan, Fanxuan (6196), Hantang, Yankee, Yaxiang, Shenghui, and Mengli have all exceeded the 10 billion mark on hand. At the same time, it is in the historical high-end area. According to statistics, the six companies have placed and outstanding orders with a total amount of more than 230 billion yuan. Hantang, Yaxiang and Fanxuan are the most proud of each with about 60 billion yuan.
Benefiting from the strong momentum of expansion of semiconductor and panel factories, the top six equipment companies in Taiwan, Fanxuan (6196), Hantang, Yankee, Yaxiang, Shenghui, and Mengli, all have orders on hand exceeding the 10-billion-yuan mark, which is at the same time in history. In the high-end area, according to statistics, the six companies have placed and outstanding orders totaling more than 230 billion yuan. Hantang, Yaxiang and Fanxuan are the most proud of each with about 60 billion yuan, and they will be prosperous until 2024.

Benefiting from the construction of semiconductor and cross-strait panel factories such as TSMC, UMC, and NSMC, the clean room engineering factories achieved record high performance last year. Hui 20.217 billion yuan, and Yankees 10.659 billion yuan. In terms of annual net earnings per share, Shenghui ranked first with 21.08 yuan, followed by Yankees with 15.83 yuan and Han and Tang Dynasties with 14.53 yuan, all earning more than one share capital.

Fanxuan has entered a large order from semiconductor customers at home and abroad, and the total amount of orders in hand has reached 60 billion yuan, reaching a new record high, ensuring that the operation will continue to flourish this year and next year. Fanxuan's consolidated revenue in the first quarter of this year was 9.668 billion yuan, a quarterly decrease of 16% and an annual increase of 47.2%, second only to the fourth quarter of last year, the second highest in a single quarter and a new high in the same period.

TSMC, Wenmao, ASE, etc. have increased their layout in southern Taiwan. Last year, the Nanke plant purchased from New Century Optoelectronics was opened this year as Fanxuan No. 5 Plant, which can meet the needs of customers for expansion and new product manufacturing.

Yankees doubled their annual revenue growth last year and earned more than one share for the fifth consecutive year. Since the beginning of this year, the capital expenditures of customers including semiconductor factories, PCB factories, optoelectronics, and IC substrate factories have increased significantly, and they are optimistic about the overall market demand. As of the end of March, orders in hand have reached 17 billion yuan, and many tenders are still in progress. The Yankees are confident that operations will still see decent growth this year.

Shenghui's consolidated revenue in the first quarter of this year was 5.378 billion yuan, a quarterly decrease of 12.8% and an annual increase of 50.4%, which was a new high for the same period in a single quarter. Shenghui is optimistic about the current quarter's prosperity. Shenghui said that the Russian-Ukrainian war has affected the price fluctuations of raw materials, and measures have been taken to lock in costs immediately after the project is confirmed.

Hantang did not disclose the size of the current orders in hand, but the orders for TSMC's new US factory alone exceed 50 billion yuan, so it is estimated that Hantang should have 60 billion yuan in orders. The consolidated revenue of Han and Tang in the first quarter was 5.793 billion yuan, a quarterly decrease of 23.3% and an annual decrease of 0.03%.

In response to the continued booming market demand, semiconductor customers have increased their production capacity. The Hantang board of directors has decided to purchase real estate in Tainan New City for about 590 million yuan to undertake the needs of major customers for new plant construction.