Build the smart IDM biosphere and open the growth ceiling of power semiconductors. The company's original main business is the R & D, production and marketing of bar code reading equipment. Considering the limited growth space of the bar code reading industry, the company actively seeks a new growth direction after listing. The company has focused on the power semiconductor industry in the past few years. After many rounds of accurate acquisition and equity participation, the company has completed "wafer-wafer manufacturing-design-distribution".
The power semiconductor "smart IDM" ecosphere layout is one of the few power semiconductor enterprises in China that have integrated and comprehensive layout in design, wafer manufacturing and wafer preparation. Subsidiaries of each link not only maintain independent operation and accept market competition, but also are expected to form better strategic coordination and help each other. Wide Micro Integration and Jingrui Electronics are entering a stage of rapid growth, wide Core Microelectronics is stepping up its construction stage, and Tabo Swift is also in a state of steady operation. power semiconductor-related business has clearly become the main body of revenue and the core driving force of performance growth.
Benefiting from the demand for new energy, there is a huge space for domestic alternatives for power semiconductors. Driven by new energy vehicles, photovoltaic, wind power and energy storage, the global power semiconductor market is expected to accelerate. According to Omdia, the global power semiconductor market is expected to grow to US $45.5 billion in 2019 and to US $55.3 billion in 2024, with a compound annual growth rate of 3.98%. Among them, the power device market is also expected to achieve synchronous high-quality growth. According to Yole forecast, 2020-2026. The global market for power devices is expected to grow from $17.5 billion to $26.2 billion at a compound annual growth rate of 6.9 per cent.
China is one of the largest demand countries for power semiconductors in the world, accounting for more than 40% of the global market. However, due to the late start of China's power semiconductor industry, the overall self-sufficiency rate is still very low. In the past two years, trade frictions between China and the United States, as well as lack of cores, are accelerating the process of domestic substitution, and domestic power semiconductor enterprises are ushering in a fast-growing industry. The layout of Minde Electronics "smart IDM" ecosystem conforms to the development direction of future power semiconductor business model, and the future development potential is considerable.
Bar code reading to meet the Internet of things Dongfeng, relying on the core technology to become a local leader. Bar code scanning technology has become one of the most common and cost-effective means of information management in modern society. the continuous development of concepts such as the Internet of things, industrial Internet and related industries are constantly expanding the application scene of bar code reading technology. this round of COVID-19 epidemic provides a rare time window for domestic enterprises to introduce overseas markets and products continuous verification.
The company is the first company in China to have independent research and development of bar code reading technology, all the core technologies are obtained through independent research and development, and the company also has rare semiconductor research and development capabilities in the industry. it is easy to make full use of the dividend of semiconductor localization to greatly reduce product costs, greatly improve product performance-to-price ratio and market competitiveness, and play an important role in the domestic substitution of bar code identification equipment industry.
The stable profitability and timely payback characteristics of the bar code reading business provide a continuous and stable fund for the company's production expansion, investment and acquisition.
Profit forecast and investment rating: cover for the first time and give a buy rating. The stable growth and cash flow contribution of the traditional barcode reading terminal business is the foundation of the company's healthy development in the past few years. Through the acquisition and layout in recent years, the company has successfully opened up the second track of power semiconductors and has gradually completed the layout of the "smart IDM" ecosystem in the field of power semiconductors. at present, the wide and micro integration of design links has stepped into the fast track of growth. The wafer link of Jingrui Electronics also has a strong performance growth, and the wafer link of wide core microelectronics project is under tight and orderly construction, and is expected to form a better synergy effect with wide and micro integration and Jingrui electronics in 2023. It is expected that the net profit will be 1.14,2.62 and 418 million yuan from 2022 to 2024, with the current market capitalization corresponding to PE 47.87,20.83,13.06 times, considering the company's future profit composition. The proportion of semiconductor business is expected to continue to rise, high-tech attributes continue to strengthen, covering for the first time, giving the company a buy rating.
Risk tips: (1) the order volume of overseas customers of bar code reading equipment is not as expected; (2) the construction progress of wide core microelectronics project is not as expected, and the synergy effect lags behind.