Many Listed Companies Respond To The Super Support Policy Of IC, Who Is The Biggest Beneficiary Of "Tax Gift Package"?

According to the forecast of CITIC Securities, assuming that SMIC north will start to make profits in 2021 and calculate the tax exemption period, based on the annual revenue of 800 million US dollars and the assumption of 10% net interest rate, the new policy of five-year exemption and five-year reduction to 10-year tax-free from 2026 to 2030 will bring about an annual income tax decrease of about 10 million US dollars.

In the early morning trading of August 5, with the three major stock indexes opening at a low level, multiple integrated circuit boards opened higher. Semiconductor silicon chip, packaging test, semiconductor, SMIC international concept, wafer industry, photoresist and other sectors led the A-share gains, all up more than 3%. In the afternoon, all sectors fell back, semiconductor, seal test, integrated circuit index and other gains narrowed to about 2%.

In terms of stocks, Zhenhua Technology, Lianchuang optoelectronics, Xiaocheng technology, Beidou Xingtong, etc. were trading, and Sanan photoelectric, Ziguang Guowei and Zhuoyi information were the top gainers.

The previous night, the State Council issued a number of policies to promote the high-quality development of integrated circuit industry and software industry in the new period (hereinafter referred to as the "new policy"). Compared with the existing policies (No.18 document in 2000 and No.4 document in 2011), the new policy puts integrated circuit in the first and most important position, and introduces a series of measures in the aspects of reducing income tax, value-added tax and tariff, encouraging domestic and foreign listing financing, encouraging import, promoting key core technology tackling, and strengthening personnel training.

As soon as the policy comes out, the chip industry is boiling. However, the trend of the integrated circuit board on that day was not as strong as the market expected. According to the analysis of industry insiders, most of the subdivision plates were under high opening and downward pressure, indicating that the accumulated growth rate of each plate in the early stage was relatively large, and the main force was willing to cash in.

However, in the long run, the implementation of the new policy will benefit the development of China's integrated circuit industry and accelerate the process of semiconductor localization, especially the leading target enjoying the exemption policy. There has been a lot of discussion on the policy industry, so how do listed companies view the impact of policies? The reporter of 21st century economic report learned that at present, many companies are studying relevant policies.

Listed companies actively study policies

What attracts the market's attention is that the new policy for the first time launched the "10-year tax-free period" policy to support the development of advanced technology production enterprises with 28nm (including) and below.

At present, SMIC is the company that meets the requirements of 28nm and below production line in A-share listed companies. Taking SMIC international as an example, its subsidiaries SMIC Shanghai, SMIC Tianjin and SMIC Beijing have respectively enjoyed five exemption and five half reduction policies since 2004, 2013 and 2015. SMIC North (28nm) and SMIC South (14nm and below) have not yet started to enjoy income tax relief because they have not made profits in 2019.

As SMIC is the leading target to meet the above tax-free policy, the market pays special attention to the extent to which SMIC will affect the company's performance. On August 5, a person from SMIC International Securities Department said in an interview, "because the policy has just been issued and the detailed rules have not been fully published, we have not yet been able to give a specific reply on the impact of the policy on enterprises and projects. But it is clear that the state attaches great importance to the development of the semiconductor industry, and the policy release is a signal. "

The source further said, "in the short term, the policy has no impact on the company's financial data, because products below 28nm have not yet made profits, and have just begun to increase in volume. But in the long run, it is definitely a good policy."

According to the forecast of CITIC Securities, assuming that SMIC north will make profits in 2021 and calculate the tax-free period, according to the assumption of annual income of 800 million US dollars and 10% net interest rate, the new policy of five-year exemption and five-year reduction of half to ten-year tax exemption from 2026 to 2030 will bring about an annual income tax reduction of about 10 million US dollars.

Affected by this news, in the opening of the trading on August 5, SMIC international of Hong Kong stock took the lead, opening more than 5% higher; subsequently, the opening of A-share market, SMIC international opened by more than 6% and closed at 83 yuan, up 2.37%.

In addition, the new policy extends the scope of application of the "two exemption and three half reduction" policy from the past chip design to the whole industry chain of packaging, equipment and materials, and the policy almost covers the whole industrial chain.

The company is the leading etch equipment leader in China. Liu Xiaoyu, the company's secretary, first forwarded the relevant policies in the circle of friends and was encouraged by the release of the policy. "Sometimes there will be long winds and waves, and we will sail straight to the sea." Liu Xiaoyu postscript said.

Beidou Starcom is mainly engaged in the R & D and production of Beidou chips. Recently, it said on the interactive platform that the company's 28nm chip has been applied in mass production; the 22nm chip is currently in the customer verification stage and is expected to be mass produced next year.

"The company has many subsidiaries and involves a wide range of business. At present, the subsidiaries are actively communicating with the tax bureau to see whether they meet the requirements and enjoy the corresponding preferential treatment. The policy is certainly good for enterprises. " Beidou Xingtong Securities Department said.

In addition, Zhaoyi innovation, Changdian technology, North Huachuang, LanChi technology, Ziguang Guowei and other companies all told reporters that they were actively studying relevant policies.

As a matter of fact, many companies have enjoyed the relevant tax preference before, and the new policy may further enhance the preferential space. "Some subsidiaries enjoy preferential industrial policies at a 10% corporate income tax rate. The company is studying new documents and will actively follow relevant policies if they can enjoy more preferential policies." Ziguang Guowei Securities Department said.

LanChi technology said, "the Finance Department of the company will definitely communicate with the tax bureau. If applicable, it will be announced in the quarterly report. If it meets the requirements, it may be reflected in the third quarterly report. However, no feedback has been received from the finance department. "

Speed up domestic substitution

In addition to the positive feedback from the company level, the industry has already interpreted the new policy for many times. For a time, relevant research papers have sprung up.

CICC believes that the "two exemption and three half reduction" policy throughout the whole industrial chain is expected to promote the healthy development of the whole industrial chain. It is expected to increase the focus of EDA and software design.

Another change of the policy is that the import tariff exemption policy for raw materials and other products related to production will continue to be implemented, and the tax exemption method for equipment has been clarified. CICC believes that this is expected to continue to reduce the production costs of leading semiconductor manufacturing and packaging enterprises.

In addition, integrated circuit related investment and financing, R & D, talent and other supporting policies have been issued. Sichuan Financial Securities pointed out that it is expected to speed up the listing of integrated circuit enterprises and promote the capital flow in the secondary market; on the talent side, it will speed up the establishment of the first level disciplines of integrated circuits, so as to lay a good foundation for the long-term development of integrated circuits.

The introduction of the new policy has also triggered the market discussion about the domestic substitution opportunities in the semiconductor industry.

Everbright Securities believes that the semiconductor industry is driven by the will of the state, domestic substitution and innovation cycle. In 2019, the total income tax paid by semiconductor listed companies is 2.567 billion yuan. This tax reduction policy is expected to further improve the profitability of the whole industry. The market demand for the improvement of localization rate is large enough, and domestic manufacturers will continue to benefit.

Talking about the investment logic of the chip industry in the future, Jin Zicai, director of the investment department of CAITONG fund, said in an interview, "the logic of domestic substitution contains a lot of investment opportunities. Originally, China's global market share in semiconductor design, packaging, and wafer plants is very low. In the process from low share to high share, there are a lot of investment opportunities. There are also some structural opportunities. For example, with the structural innovation of consumer electronics, the flexibility of semiconductor design companies in optics and other fields is relatively large, and the share of flexible circuit boards will be more and more. There are also opportunities for upstream chip end. Focus on SMIC's international industrial chain and Huawei's industrial chain. "

Just on August 4, in a conference call, SMIC founder Zhang Rujing, who rarely spoke publicly, said, "the United States is not so strong in its ability to restrict China. I believe we can catch up with it. The third generation semiconductor IDM is now the mainstream. If China keeps ahead in 5g technology, China will be far ahead in communication, artificial intelligence, cloud service and so on in the future, because China is very strong in the field of high-tech application. "

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