Advanced packaging technology has led to a high demand for related integrated circuit packaging materials: since the semiconductor process entered 10nm, Moore's Law has gradually invalidated, entering the post-Moore era, for "more than moore"

With the continuation of advanced packaging, advanced packaging has become one of the mainstream technologies of integrated circuits. In the face of the technology blockade of the United States, it is difficult for domestic technology companies to fully share the fruits of global advanced processes, but advanced packaging technologies such as Chiplet and 2.5D/3D can make up for the lack of advanced processes to a certain extent. The company is a small number of domestic companies that can produce wafer UV films, chip solid crystal materials, chip-level bottom filling adhesive, Lid frame bonding materials, board-level packaging gaskets and other packaging materials, and there are a number of advanced packaging materials, including DAF films, which are being verified by customers.

The application of AI technology will lead to the improvement of the demand for intelligent terminals, benefiting from the company's related intelligent terminal materials: the company's intelligent terminal packaging materials are widely used in screen display modules, camera modules, acoustic modules, power modules and other major module devices and whole equipment of mobile intelligent terminals such as smart phones, tablet computers, intelligent wearable devices, etc. With the landing of AI technology, the demand for related intelligent terminals is expected to grow rapidly, and the penetration of overlay companies in customer products is gradually increasing, and the main customers include well-known consumer electronics manufacturers such as Lixun Precision, Gale shares, XIAOMI Technology and so on.

With the rapid growth of new energy vehicles, the high boom in the photovoltaic industry has led to the growth of the company's related income: in the field of power batteries, the company's two-component polyurethane structural adhesive is mainly used for battery cells, battery modules, battery Pack to play the role of bonding and fixing, heat conduction and heat dissipation, insulation protection and so on. In the photovoltaic field, the company's photovoltaic laminated materials can provide photovoltaic cells with bonding, conductive, reducing interchip stress and other functions, which is one of the key materials to achieve photovoltaic stack packaging process, high conductivity and high reliability. The company deeply benefits from the rapid growth of downstream major customers such as Ningde Times, BYD, Tongwei shares, Ates and so on.

Investment suggestion: from 2023 to 2025, we expect the company to achieve a total operating income of 1.265 million yuan and a net profit of 1.71 million yuan and 236,322 million yuan. As of 2023-7-14, the corresponding PE is 50.46, 36.52, 26.73 times, covering for the first time, and given the rating of "over-holdings".

Risk tips: integrated circuit product iteration and technology development risk; integrated circuit packaging material revenue share is low and industry demand downturn risk; gross profit margin decline risk.