Event: the company recently released the third quarter report of 2021, 21Q3 achieved revenue of 228 million yuan, yoy+43.15%, achieved a net profit of 41 million yuan, yoy+45.17%.
Comments: the performance is in line with expectations. We believe that the company's revenue scale + net profit growth mainly benefits from the increase in the proportion of advanced packaging + high-speed start-up of multi-point flowering in downstream applications.
The demand for miniaturization and low power consumption in the downstream market has led to the rapid development of advanced packaging. The company has seized the opportunity of the post-Moore era to optimize product structure + introduce core talents, and the proportion of advanced packaging has been increasing. With the multi-blooming of downstream applications such as AIOT and smart phones, and the requirements of miniaturization, low cost, low power consumption, high reliability and low cost, the advantages of advanced packaging are promising. The company's advanced packaging accounted for 19.26% in 2020. Advanced packaging accounted for 24.60% in the first half of 2021. In the process of expanding production, the company is also adjusting the product structure, focusing on the introduction of advanced packaging products to increase production capacity, reducing the proportion of traditional packaging. The company will continue to introduce and train high-level packaging and testing technology personnel, especially advanced packaging technology personnel, strengthen R & D investment, and further enhance the company's R & D strength and technical level.
The company continues to optimize the customer structure to introduce brand customers, while strengthening research and development to increase the proportion of technology to increase customer stickiness, customers are highly coincident with the leading enterprises in the industry. The company continues to research and develop packaging technology and packaging forms, and applies new technologies to the company's packaging and testing products. As of March 15, 2021, the company has 180 domestic and foreign patented technologies, including 10 invention patents, forming a series of core technologies. At the same time, in recent years, the company continues to optimize the customer structure, continue to introduce brand product customers, has achieved outstanding results. In terms of domestic customers, the company has highly overlapped with the leading enterprises in the industry.
The carbon-neutral era leads the development of the third-generation semiconductors, and the company seizes the opportunity to lay out 5G GaN packaging products and ship 26 million pieces in 2020. The company's 5G MIMO base station GaN RF power amplifier plastic packaging product is one of the three core RF chips of 5G MIMO base station. By the end of 2020, the company shipped about 26 million 5G GaN RF power amplifier plastic packaging products, accounting for 6.7% of the main business revenue. At the same time, 5G GaN packaging products also help to increase the company's gross profit margin. In 2020, the company's gross profit margin of 5G MIMO base station GaN plastic packaging products is as high as 50%. We are optimistic that the company will continue to expand the output of 5G GaN packaging products and increase the overall gross profit margin with the upsurge of the third generation semiconductor development.
Profit Forecast: we expect the company's net profit in 2023 to reach 1.39Universe 1.69 / 217 million respectively, corresponding to EPS of 1.31Universe 1.59exp 2.04 yuan per share, maintaining the overweight rating.
Risk hints: the competitiveness of the advanced packaging market is lower than expected, the iterative risk of technology and product upgrading in the field of integrated circuit packaging and testing, the risk that the company's self-defined packaging form can not be widely recognized in the market, and the risk that the market space is limited, market competition aggravates the risk, downstream demand is lower than expected.