Incident reviews
According to Jingfang's announcement on March 27, the company plans to continue to purchase 6.61% of its Anteryon shares from overseas shareholders through Jingfang Optoelectronics. Previously, the company had held 74.48% of Anteryon's shares through Jingfang Optoelectronics and its wholly-owned subsidiaries. After this acquisition, the company held a total of 81.09% of Anteryon's shares. Through this acquisition, the company strengthened the integration of the WLO business with semiconductor packaging technology, and is expected to further benefit from the performance flexibility brought about by the volume of MLA headlights.
The predecessor of Anteryon in the Netherlands was Philips Optoelectronics Division, which has accumulated more than 30 years of experience in developing related products. Currently, the largest customer is ASML from the Netherlands. Anteryon also has the capacity to mass-produce hybrid lenses and wafer-level miniature optical lenses (WLO), which are mainly used in optical lenses for lithographers and automotive welcome lights under the MLA scheme.
We expect Anteryon to achieve a 50% increase in net profit in 2023. Since the 2016 BMW 7 Series was equipped with Angel Wings carpet welcome lights, many car brands have begun to introduce personalized headlights with MLA (Microlens Array) solutions with more imaging advantages. The MLA projector chip uses WLO technology. Due to the difficult production process, Anteryon and ams OSRAM are currently one of the few manufacturers in the world that have mastered MLA module production technology and mass-produced them. Anteryon's net profit in '21 was about 10 million yuan. If the headlight business starts generating revenue in Q4, we expect Anteryon's net profit to grow 50% in '23.
The consumer electronics sector grasped the inflection point of the 23H2 demand side recovery, and the scale of mass production in the automotive sector continued to increase. The company's net profit is expected to fall 58%-65% year-on-year in '22, mainly dragged down by low demand in the mobile phone sector. According to dynamic tracking of the company's main customers, Haowei and Gekowei, we have observed that CIS manufacturer 22Q4 still faces accelerator inventory loss, and will continue to remove inventory in 2023H1. We expect the company to experience demand-side improvements in the consumer electronics sector on 23H2.
The company's first-mover advantage in the automotive sector is obvious. Currently, the company mainly binds Haowei to supply CIS packages for cars, and production capacity on new production lines is gradually climbing, and it is expected that investment will continue to increase in the future.
Investment advice
Currently, we believe that the company's sluggish performance in the field of mobile phones and security has been fully anticipated by the market, and that an inflection point in downstream demand is expected to occur in 23H2. In the automotive CIS field, the company is mainly tied to Haowei, and early technology accumulation is expected to be gradually converted into revenue as production capacity is released. What is very interesting is the company's future opportunities in the WLO business. The company's further acquisition of Anteryon shows that the company attaches great importance to WLO business development, and the future release of MLA headlights is expected to bring greater flexibility to the company's performance. We forecast the company's net profit to the mother in 2022/2023/2024 to be 23/45/62 million yuan respectively, giving it a “recommended” rating.
Risk warning
Demand for consumer electronics is recovering slowly, technology paths in the automotive electronics sector have changed, and the promotion of MLA technology in the automotive lighting sector has fallen short of expectations.