The company focuses on high-end packaging, leading CMOS image sensor wafer-level packaging technology. In recent years, we have continued to expand our business layout through extended mergers and acquisitions. Deeply tied to high-quality CIS customers around the world, with a high level of customer concentration. It covers world-renowned sensor design companies such as SONY, Haowei Technology, Geke Micro, and Stevie. High R&D promotes technological innovation, focusing on advanced packaging, leading the gross margin industry.
Judging from industry trends, advanced packaging is the future trend. TSV technology is the core technology for advanced packaging. Judging from the company's endogenous growth, the production capacity project for 180,000 12-inch packages on the production side is progressing in an orderly manner. Consumer electronics, mainly mobile phones, on the demand side are expected to begin to be inventoried. Automotive-side ADAS drives volume and price increases, and AI drives new security needs. At the same time, the company acquired Anteryon. After increasing capital, the company formed a three-line layout of automotive packaging+automotive WLO+ automotive GaN devices, which is expected to fully benefit from vehicle electrification and networking. Three modernizations trend.
Looking at the three downstream application areas: 1) Mobile phones: multiple cameras+high pixels drive a sharp rise in chip packaging business volume and price; 2) automobiles: under the trend of electrification, networking, and intelligence, ADAS drives increased camera installation; 3) Security: 5G+AI helps security grow.
The second growth curve for optical devices is expected to replicate the successful testing experience. On the one hand, the company actively cooperates with Anteryon to collaborate and integrate optical design and component manufacturing capabilities with the company's business technology. On the other hand, it hopes to successfully attract overseas experience and develop its own technology path, with Jingfang Optoelectronics innovating and transplanting leading wafer-level micro optical device manufacturing technology as a whole, building a mass production line in the Suzhou Industrial Park, and achieving large-scale commercial application in the field of automotive optical devices.
Invest in ViSiC to deploy automotive GaN devices, and fully deploy automotive products. ViSiC was founded in 2010 with the goal of advancing gallium nitride (GaN) technology into mainstream applications. From a product perspective, VisIC Technologies provides D? GaN products, in a comparative study, D? GaN consumes only 15% of SiC technology and 50% of other GaN technologies in inverter losses. So D? The use of GaN can increase vehicle mileage while reducing costs. 6.6 kW D currently being developed by VISIC? GaN car charger. D? Compared to silicon carbide products, this GaN product is lighter in weight, more efficient at the same power, and has higher energy density.
Profit forecast and investment rating: We expect the company's net profit to be 2.15/352/516 million yuan in 2023-2025, and the PE corresponding to the current market value is 66/40/28 times, respectively. Considering that the company is a leader in advanced packaging and testing in the CIS, gross margin leads peers, and at the same time, TSV's leading technology fully benefits from the trend of advanced packaging, covering a “buy” rating for the first time.
Risk warning: risk of exchange rate fluctuations; downside risk of global industrial chain restructuring; risk of rising costs.