Event: on December 29, 2022, the company issued a draft equity incentive plan for 2022, which intends to grant a total of no more than 46.8176 million stock options to the incentive object, accounting for about 3.00% of the company's total equity at the time of the announcement of this draft incentive plan. Among them, the first grant is not less than 3745.76 million, the reservation is not more than 9.36 million, and the exercise price of some stock options granted for the first time is 11.39 yuan per share.

The equity incentive is bound to the core backbone, demonstrating the company's confidence in the development of the company: the number of incentive targets to be granted under the equity incentive plan does not exceed 500, including directors, senior managers, middle managers, core technical (business) backbones and other people who the board of directors think have made special contributions to the company. The company's performance evaluation indicators are set as follows: the cash return on net assets in 2023-2025 is not less than 13%, 13.5%, 14%, respectively; on the basis of 2021, the annual compound growth rate of net profit in 2023-2025 is not less than 10.00%, and is not lower than the average performance level of the same industry in the same year or the 75 quartile of the target enterprise; and the operating profit margin in 2023-2025 is not less than 3.40%, 3.45% and 3.50%, respectively. The total cost of options in 23-27 years is 131 million yuan, and the total cost of each period is 0.450.49Universe 0.25Universe 0.008 billion.

This equity incentive goal is clear, which shows the company's confidence in medium-and long-term performance development. Through the incentive plan, it will further promote the construction and stability of the company's core talent team and promote the company's long-term development.

Orderly expansion of storage closed test capacity, customer expansion steadily: the company implements Shenzhen, Hefei semiconductor closed test dual-base operation mode, to meet the needs of upstream customers, orderly expansion of memory chip supporting closed test capacity. Since Hefei Peitun was put into production in December 21, it has formed a package testing capacity of 15000 storage wafers by May this year. At present, it has passed a number of system certifications such as ISO 9001x14001x45001, as well as large-scale mass production audit of packaging products from existing customers, and will continue to actively introduce new customers in the future. With the goal of meeting the capacity needs of key customers and strengthening the research and development of advanced packaging technology, the company will focus on flip process (Flip-chip), the research and development of POPt stack packaging technology, and the optimization of 16-layer ultra-thin chip stacking technology, and strive to become a memory chip closed test benchmark enterprise. The company persists in actively expanding new customers. The order volume of semiconductor closed testing business has increased compared with the same period last year, and business profits have increased.

The active layout of advanced closed testing business is expected to continue to benefit from the growing demand of emerging industries: in the context of the extensive demand for higher integration such as 5G communications, artificial intelligence, consumer electronics, the Internet of things and high-performance computing and the slowdown of Moore's Law, packaging is becoming more and more important for improving the overall performance of the chip. at the same time, with the development of advanced packaging towards miniaturization and integration, technical barriers continue to rise. The closed test companies that are the first to have advanced packaging technology and capacity reserves are expected to take the lead in the industry through technology and scale barriers. As a leading independent DRAM memory chip packaging and testing company, the company has experienced R & D and engineering team in the industry, superb multi-layer stack packaging process capabilities and testing software and hardware development capabilities. The company is actively laying out Fan out, 2.5D, SiP and other high-end closed testing fields, setting up advanced packaging research and development centers, and cooperating with universities to set up advanced manufacturing technology innovation centers. At the same time, the planning and construction of Bumping project is being carried out at the same time, which is expected to further consolidate the company's technical advantages in the advanced closed testing field.

Maintain "overweight" rating: the company focuses on providing customers with technology research and development, process planning, manufacturing, supply chain management, logistics, sales and other one-stop electronic products manufacturing services. Based on advanced manufacturing, guided by market and technology, and adhering to high-quality development, the company has constructed the development strategy of three main businesses: storage semiconductors, high-end manufacturing and metrological intelligent terminals. The company closely follows the market changes and customer development direction, gives full play to the advantages of global high-quality customer resources, rapid response capability of industrial chain resources and supply chain, and multi-technology integration platform, and forms a closer cooperative relationship with global high-quality customers. further promote the company's business to high-end, intelligent, independent development. In the future, with the expansion of production capacity and the introduction of new customers, the company's performance is expected to continue to improve. It is estimated that the homing net profit of the company from 2022 to 2024 is 8001,975max, respectively, and the EPS is 0.51, 0.63 and 0.74, respectively, and the corresponding PE is about 22x, 18x and 15x respectively, maintaining the "overweight" rating.

Risk tips: customer expansion is not as expected; capacity expansion is not as expected; downstream market demand is not as expected; competition in the closed testing industry is intensified.