Main points of investment

Next Wednesday (November 2), there will be a Science and Technology Innovation Board listed company "Yongsi Electronics" inquiry.

Yongsi Electronics (688362): the company is mainly engaged in the packaging and testing of integrated circuits, and the downstream customers are mainly integrated circuit design enterprises, and the products are mainly used in RF front-end chips, AP SoC chips, touch chips, WiFi chips, Bluetooth chips, MCU and other Internet of things chips, power management chips, computing chips and so on.

From 2019 to 2021, the company realized operating income of 366 million yuan / 748 million yuan / 2.055 billion yuan respectively, and its YOY was 848.97%, 104.50% and 174.68%, respectively. The compound annual growth rate of operating income for three years was 276.35%. The net profit of homing is-40 million yuan / 28 million yuan / 322 million yuan, the YOY is-1.43%, 170.32% and 1056.41%, respectively, and the compound annual growth rate of the net profit of three years is-302.05%. During the latest reporting period, 2022H1 achieved an operating income of 1.136 billion yuan, an increase of 35.76% over the same period last year, and a net profit of 115 million yuan, an increase of 6.94% over the same period last year. The net profit attributable to the owner of the parent company is expected to be in the range of 160 million yuan to 195 million yuan, an increase of-21.26% to-4.04% over the same period last year.

Investment highlights: 1, the company's team has a wealth of industry experience, leading the company's technical strength to maintain the industry's leading, or will bring better help in the wafer-level packaging technology research and development. Chairman Wang Shunbo and director Xu Yupeng have worked in Sunlight closed Test (Shanghai) and Changdian Technology, while directors Xu Linhua and core technical personnel Zhong Lei, Li Li and he Zhenghong have also worked in Changdian Technology for several years. With rich experience in the integrated circuit closed testing industry, it helps the company's strategic development and technology research and development. At present, the company has rich technical reserves in system-level packaging and other products, but it has not yet formed mass production capacity in the field of wafer-level packaging, and an outstanding team is expected to lead the company to achieve better development in the field of new technology. 2. The company is one of the few integrated circuit closed testing enterprises with advanced packaging capacity in China, and its profitability is relatively ahead in the domestic closed testing enterprises. Since its establishment, the company has focused on the technology and process research and development in the field of advanced packaging. At present, it has outstanding advantages in the field of advanced packaging, such as system-level packaging (SiP), high-density fine-pitch bump flip products (FC products), and large-size / fine-pitch flat unpinned packaging products (QFN/DFN). For example, the company's SiP products can simultaneously package 7 grains and more than 24 SMT components in a single package. FC product bump interval reaches 80um, and supports CMOS/GaAs flip, which is one of the few domestic closed testing enterprises with advanced packaging capacity. The company focuses on the advanced packaging business in domestic middle and high-end fields and has good profitability; in 2021, the gross profit margins of Changdian Technology, Huatian Technology and Tonfu Micro Electric are 18.41%, 24.61% and 17.16%, respectively. The gross profit margin of the company is better than that of the above-mentioned enterprises, reaching 32.26%. 3, in line with the business cycle of the industry, the company actively expanded production during the reporting period to bring outstanding performance; in the future, the company will continue to increase production capacity, or provide better support for revenue growth. During the reporting period, the company continued to invest in the construction of machinery, equipment and production lines. The total production capacity of 2019-2022H1 reached 11.54, 19.81, 1.125 and 1.744 million respectively, and the total output reached 909, 16.61, and 1.453, respectively. The rapid growth of production capacity and output led to a substantial increase in the company's sales scale year by year. According to the data of the company's prospectus, the amount of machinery and equipment under construction by 22H1 Company is 167 million yuan, including grinding equipment, testing equipment, welding wire equipment, etc.; with the gradual consolidation of projects under construction, the company expects that the total production capacity of 2022 will increase to a certain extent compared with the previous year. And the company plans to use investment funds to expand the production of SiP products, the construction period is 3 years, after reaching production, it will increase the annual production capacity of 1.74 billion SiP RF modules closed testing, compared with 20 years of SiP sales of 416 million, there is a larger supply capacity, or will provide support for the company's revenue growth.

Comparison with listed companies in the same industry: the company mainly provides integrated circuit packaging and testing solutions for integrated circuit design companies. according to the similarity of business, Changdian Technology, Huatian Technology and Tongfu Micro Power are selected as comparable listed companies. According to the above comparable companies, the average income of the industry in 2021 is 19.47 billion yuan, the PE-TTM (arithmetic average) is 21.98X, and the gross profit margin of sales is 20.06%. Relatively speaking, the revenue scale of the company is lower than the industry average, while the gross profit margin is higher than the industry average.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data selection may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.