T ab le: Summ issued ar cloth] in 2023, and announced the mass production of lidar microscopes.
In the first half of 2023, the company achieved 400 million in revenue, an increase of 5.2% over the same period last year, and the net profit was-30 million yuan, down 430.7% from the same period last year, and-60 million yuan after deduction, which was basically the same as the same period last year. The company's Q2 achieved revenue of 206 million yuan in a single quarter, basically the same as the same period last year, with a slight increase of 7.8% compared with the same period last year, mainly reflecting the marginal improvement in the income of Swedish subsidiaries.
In addition, the company announced on September 13 that the MEMS micromirror manufactured by Beijing Selex Microsystem for a customer had started commercial mass production, and had signed a purchase order, combined with the mass production of BAW filters from a previous customer, indicating that the Beijing subsidiary had entered a new stage of development.
The first half of 2023: Sweden factory marginal improvement, Beijing factory is on the eve of mass production.
In the first half of the year, Swedish silex achieved revenue of 360 million yuan and net profit of 65 million yuan, an increase of 7.5% and-4.4% respectively over the same period last year. As the company's main performance contributing entity, the company's wafer manufacturing and process development revenue increased by 24.5% and-24.7% respectively in the first half of the year compared with the same period last year, mainly due to more process development customers turning to the mass production stage and Swedish production line production scheduling entering the normal pace. In addition, the gross profit margin of the wafer manufacturing business in the first half of the year was 32.6%, which also achieved an increase in 16.3pct compared with the same period last year. Although process development revenue and gross profit margin have declined, changes in the company's revenue structure contribute to more sustainable and deterministic profitability. From a regional point of view, North America, Europe and China achieved revenue of 190 million, 110 million and 90 million respectively in the first half of the year. The company is still the main MEMS process development and mass production supplier for North American technology giants. Specifically, the Beijing subsidiary achieved revenue of 24 million in the first half of the year, mainly based on process development, with a net profit of-81 million, reducing losses.
Customers of Beijing BAW and lidar microscopes are expected to take the lead in mass production, and more special processes will enter the risk trial production stage.
The BAW filter production line jointly built by the company and Wuhan Minsheng has officially started mass production in July and will contribute batch revenue in the second half of the year. At the mass production ceremony of the 8-inch BAW filter joint production line in Beijing on July 31, Wuhan Minsheng signed an order with Sai Microelectronics, while the over 100 million yuan strategic financing obtained by Wuhan Minsheng was led by Saiwei Private Placement. According to the YOLE report, there are 9.1 billion FBARBAW filters in the world in 2023, with a demand of 1.54 billion US dollars, which is mainly monopolized by Broadcom Ltd and Qorvo. Wuhan Minsheng, co-founded by Professor Sun Chengliang of Industrial Science Research Institute of Wuhan University and 14 internationally renowned experts, has launched FBAR filter products for wifi, 4G and 5G.
In terms of lidar for ADAS, according to YOLE's forecast, global shipments will increase from 200000 in 2022 to 11.8 million in 2030. In recent years, MEMS is expected to account for 30% of the scanning technology. As the core component of MEMS lidar, MEMS micromirror has high manufacturing barriers and high value. Assuming that MEMS micromirror ASP is 50 US dollars, the market demand will exceed 3 million US dollars in 2022 and grow at a compound growth rate of not less than 50%. And the main MEMS Lidar suppliers are in China (according to Geshi Automotive Statistics, the first four domestic Lidar shipments from January to May 2023 are Wesai, Tudatong, Huawei and Suiteng, while all four have launched MEMS products). The company announced that the main domestic MEMS Lidar manufacturers to customize the process and start mass production is expected to contribute important revenue.
In addition, according to the company's semi-annual report, MEMS gas sensors, biochips, silicon photonic devices, new medical devices, new infrared devices, new ultrasonic energy conversion devices, new inertial devices and other characteristic processes have entered the risk production stage, which is scarce in China and is expected to contribute to mass production income one after another.
MEMS listed companies gradually form a plate effect, and the status and value of characteristic process foundry is prominent.
Since the beginning of this year, MEMS science and technology start-ups such as SMIC and SMIC have been listed one after another, while star companies in the primary market, such as Minghao Sensor and Silicon Monitor Technology, are also expected to declare one after another, and MEMS will form a plate effect and attract incremental capital attention. YOLE predicts that the global MEMS industry market will grow from US $13.6 billion in 2021 to US $22.3 billion in 2027, with more than US $1 billion in segments including RF MEMS, MEMS inertial devices, pressure MEMS, silicon microphone and future applications. Swedish subsidiary silex has long been ranked first in global MEMS foundry, and in the future it will further exert its technology and customer advantages through transformation to a volume production plant; while Beijing subsidiary has rich research and development of pipeline pipelines, which will benefit from the wave of domestic MEMS science and technology innovation, and has unique advantages in some high technical barrier races (such as BAW, silicon light, IMU) and small characteristics (such as biology, optical switches).
Investment suggestion
We believe that the company's trough adjustment period is over, long-term R & D investment will be gradually reaped, 2023 Swedish subsidiary income and profit margin will improve marginally, and Beijing subsidiary income is expected to increase significantly in the second half of the year. However, as the increase in revenue and gross profit margin in Beijing will be a slow climbing process, we predict that the company's net profit from 2023 to 2025 will be 0.160.84 million yuan respectively. The previous value is 0.84 pound 443 million yuan, maintaining the "buy" rating.
Risk hint
MEMS market demand rebounded less than expected, Sweden silex mass production capacity expansion is not as expected, Beijing mass production customer introduction progress is not expected, closed test production line layout is not as expected, Sino-US science and technology friction intensified.