Focus on mid-and high-end packaging products. The company was established in November 2017, from the beginning of its establishment, it focused on the advanced packaging field of IC closed test business, all products are QFN/DFN, WB-LGA and other high-end advanced packaging forms. The downstream customers of the company are mainly integrated circuit design companies, such as Hengxuan Technology, Jingchen shares, Fuhanwei, MediaTek, Beijing Junzheng, Weir shares, etc., the products are mainly used in RF front-end chips, AP SoC chips, touch chips, WiFi chips and so on.
The scale of revenue continues to expand and 23Q2 revenue rebounds. The company's business has developed rapidly, and the company's CAGR reached 273.33% from 2018 to 2022. 2023H1's revenue is 983 million, yoy-13.46%, is mainly due to the impact of multiple factors such as slowing macroeconomic growth, international geopolitical conflicts and industry cyclical fluctuations, and the overall demand in the end market is weak. 2023H1 gross profit margin is 12.18% Tokyo yoymur13.04pcts.
In the second quarter of 2023, the overall growth rate of the company showed a steady upward trend, with an operating income of 558 million yuan. However, due to the overall weakness in the downstream and the pressure on order prices, the company's overall gross profit margin in the first half of the year decreased compared with the same period last year.
The closed testing industry is gradually recovering, and the market share of advanced closed testing is increasing rapidly. In 2023, global semiconductor sales rose for four consecutive months from March to July, and Taiwan stock closed test plates also followed a rebound, and closed test leading companies were positive about 23Q3 guidelines. Advanced packaging contributes to growth momentum, and the global market will grow from US $32.1 billion in 2021 to US $57.2 billion in 2027, with CAGR reaching 10.11%. Advanced packaging accounts for about 47.20% of the global packaging market in 2022, and is expected to be close to 50% in 2025, with 2.5D/3D packaging leading the growth rate.
Conquer high-density Bump+RDL technology, power wafer-level packaging. After 2018, the company has gradually achieved mass production of a variety of cutting-edge products and technologies, including flip chip, QFN/DFN, wire type BGA, system-level packaging (SiP) and hybrid packaging BGA (Hybrid-BGA), with advanced packaging products taking the lead.
Based on advanced Bumping micro-bump and RDL rewiring technology, wafer-level packaging technologies such as Fan-in/Fan-out and 2.5D/3D are actively developed. With the Bumping and CP production capacity line, the company's bump processing self-sufficiency rate continues to improve, one-stop delivery capacity, will also drive the gross profit margin up.
Profit forecast and investment advice: we expect the company's revenue from 2023-2025 to be 2.03 billion yuan 2.84 billion yuan and its net profit to return to its mother to be 1.4 billion yuan 2.3 billion yuan. In view of the increasing proportion of the company's high-end advanced packaging products, rich technology reserves and coverage for the first time, it is given a "highly recommended" investment rating.
Risk hint: the progress of new technology research and development is not as expected. The intensification of competition led to a drop in product prices. Downstream demand is lower than expected.