The current situation of the company
Jingfang Science and Technology Semiconductor Science and Technology Innovation Industrial Park laid the foundation in Suzhou on September 21. the project covers an area of about 90 mu, with a total investment of about 500 million yuan and a total construction area of 120000 square meters, including a comprehensive R & D building of about 30,000 square meters. the factory and production facilities are about 90,000 square meters, which are planned to be completed in 2024. We believe that the company focuses on sensor closed testing represented by CIS, and the demand is maintained under the development trend of Wisdom, and capacity expansion is expected to inject momentum into the company's revenue.
Comment
The company continues to expand capacity, car regulation capacity for the current focus of construction. The company will raise an additional 1 billion yuan in 2020 for the "Integrated Circuit 12-inch TSV and heterogeneous Integrated Smart Sensor Module Project". This project is the first domestic production line to develop and build a 12-inch TSV package for vehicle specification-level camera applications. The company expects to complete construction by the end of 2022 and the annual production capacity will reach 180,000 pieces after completion. As of the 1H22 capital investment of nearly 60%, mass production capacity continues to improve. We believe that in the semiconductor science and technology industrial park that the company started recently, the planned plant and production are about 90,000 square meters and are planned to be completed in 2024, which is expected to further enrich the company's production capacity and support the company's long-term scale expansion.
Long-term optimistic about the market prospect of sensor closed testing under the AIoT tide. In the pan-Internet of things, we believe that with the rapid development of the AIoT market, floor-sweeping robots, drones, VR/AR and other products are expected to drive the new demand for CIS. In terms of in-vehicle CIS, the trend of intelligent driving has been established. As an important vision sensor, in-car camera may enjoy the demand dividend for a long time, and compared with traditional COB packaging, WLCSP+TSV technology helps to achieve more miniaturized and more reliable vehicle CIS products.
In July 2022, the Suzhou Automotive gauge Semiconductor Industry Technology Research Institute, which the company participated in, was launched, with plans to carry out research and industrialization in intelligent sensing, advanced assisted driving, vehicle intelligent interaction, and third-generation semiconductor high-power devices. We believe that although short-term consumer electronics has a certain pressure on the demand side, AIoT may promote the sustained prosperity of CIS demand, and the overlay company will actively lay out around the car regulation CIS. As the leading manufacturer of WLCSP+TSV technology, it is expected to benefit from the boost of vehicle CIS demand.
Accumulate high-quality customer resources and grow together with the industry chain. The company specializes in wafer-level chip size packaging technology and accumulates high-quality customer resources, including world-renowned sensor design companies such as SONY, Howe Technology, Geke Micro, etc., we believe that the deep binding coordination with core customers will help the company to maintain the advanced nature of technology and provide support for capacity digestion.
Profit forecast and valuation
We are optimistic about the company's advantageous position in the field of CIS closed testing and the revenue increase brought about by capacity expansion, and maintain the profit forecasts for 2022 and 2023. Maintain an outperform industry rating and a target price of 26.31 yuan, which is still 28.5% higher than the current stock price.
Risk
Production line construction / vehicle CIS market development / consumer electronics business is not as expected.