1. Optoelectronics Technology is one of the top three semiconductor dicer giants in the world. Semiconductor packaging and testing equipment is an important component of semiconductor special equipment and supports the back-end sealing process from wafer to chip. Among them, the dicer is an important device in the semiconductor packaging process. It is used to divide wafers into separated grains. The wafer cutting process requires extremely high accuracy, stability, consistency, and production efficiency of the equipment.
The company is one of the top three semiconductor cutting and dicing equipment companies in the world, and also has mass production equipment for cutting and dicing, and consumables such as core components - air spindles and blades, etc., which can provide customers with personalized overall cutting solutions. The company's high-end cutting and dicing equipment and consumables can be used in cutting processes in advanced packaging.
ADT, the company's holding subsidiary, is the third largest semiconductor cutting and dicing equipment manufacturer in the world, with customers all over the world. It has many years of industry experience and broad market brand awareness in the field of semiconductor back-end packaging equipment. The company has few engineering resources, technical accumulation and service capabilities to provide customers with customized blades and fine-tuning characteristics according to customer needs, and can provide customers with tailored overall cutting and slicing solutions. ADT soft knives are also in a leading position in the world and are highly recognized by customers.
The wholly-owned subsidiary, British LP Company, is the inventor of the semiconductor cutting machine. In 1968, British LP invented the world's first dicing machine for processing semiconductor devices. Over the years, the company has provided special customized equipment for various customers, has decades of technology accumulation and industry experience, and has accumulated rich processing and manufacturing experience and cutting technology. The high-performance high-precision air spindles produced by the company have the outstanding advantages of ultra-high motion accuracy, ultra-high speed and ultra-high rigidity, and are in a leading position in the industry in meeting customer needs for high-performance spindles and new concept spindles.
The company has also built a core technology platform around air spindles, and has further developed and produced core components such as air guides, rotating workbenches, high-speed motors, and drives.
Guangli Ruihong, a wholly-owned subsidiary located in Zhengzhou, China, is the R&D center and manufacturing center of the company's semiconductor business division in China, making every effort to promote technology introduction and localization. In just a few years, a series of domestic cutting and dicing machines such as 8230, 8231, 6230, 6231, and 6110 have been developed. Among them, the performance of the 8230 is a 12-inch fully automatic biaxial cutting and dicing machine that is mainstream in the industry. It has already entered leading packaging and testing companies and formed mass sales, successfully achieving a domestic replacement for high-end cutting and dicing equipment. The new production base in the Zhengzhou Airport Area covers an area of 178 acres. After completion, it will become the company's global R&D, production and technical service center for semiconductors, providing first-class products and services for China and Southeast Asia, where the sealing and testing industry is concentrated.
2. The core component of Guangli Technology's dicer, the world's leading spindle in air spindle technology, is known as a “mechanical joint” and is an indispensable basic component in modern mechanical equipment. Because of its high speed, high accuracy, and high stability, the high-performance high-precision air spindle has become the core component of semiconductor cutting dicers and grinders.
LP Company, a wholly-owned subsidiary of the company, is the first company in the world to apply an air spindle to a dicer. It has always been in a leading position in the industry in the development and production of high-performance high-precision aerostatic spindles, pneumatic spindles, air guides, rotating workbenches, and drives. LP's products are widely used in semiconductor industry chip packaging processes - precision and high-efficiency cutting, scribing and grinding equipment, and finishing equipment in the optical lens industry. It has outstanding advantages of ultra-high motion accuracy, ultra-high rotation speed, and ultra-high rigidity. LP has long cooperated with British universities, research institutes and large and medium-sized multinational companies. It has refined its core product manufacturing experience into a series of easy-to-understand computer program modules, and innovated in DC brushless motors in air bearing systems. LP can not only provide the most core components related to the performance of cutting and slicing equipment, but also provide other international companies with high-performance air spindles required for grinding and polishing equipment for hard and brittle materials such as semiconductor wafers.
High-performance high-precision air spindles have very broad industry application space and product expansion space. In addition to semiconductors, they can also be widely used in medical, automotive painting, high-end machine tools, military, etc., with extremely high technical barriers.
The technical performance of localized cutting air spindles has been tested and reached the design indicators. Currently, small-batch trial production has been carried out and verified on the machine. The “Ultra Precision High Rigidity Air Spindle R&D and Industrialization Project” convertible bond project has been successfully issued, and all capital raised has been put in place. The company has taken the construction of a fund-raising project as an opportunity to speed up the localization process.
3. Optoelectronics Technology actively promotes the localization of blade projects
The blade is a key consumable for wafer cutting and package cutting in the semiconductor packaging process. The blade is driven by an air spindle and rotates at high speed and then directly acts on the material being cut. The quality, performance stability, and inter-blade consistency of the blade also directly affect the final cutting quality and product consistency. The company's soft knife types include nickel knives, resin knives and sintering knives, and can be customized to design different blades according to different processing materials; in terms of cutting quality, the company's soft knives have the characteristics of high processing efficiency, high accuracy, long life, etc., and have good blade versatility, so they can be adapted to mainstream dicing machines in domestic and foreign markets. Currently, the company's soft knife series products are widely used in the processing of semiconductor wafers and electronic components. After decades of technology iteration and application accumulation, the performance is stable and reliable. It is in a leading position in the world, and customer awareness is high.
In terms of consumables, products developed and produced by the subsidiary ADT include soft knives, flanges, and grinding stone blades. The company's soft knife products are suitable for different application scenarios according to different abrasives, density and adhesives. It is also one of the few companies in the industry that can provide customized blades according to customer needs.
ADT, a subsidiary of the company, has many years of experience in manufacturing and operating equipment such as semiconductor dicers. ADT's soft knives are in a leading position in the industry and are at the leading level in the industry in terms of semiconductor cutting accuracy. The most critical precision control system for its self-developed dicing equipment can achieve control accuracy as low as 0.1 microns for stepper motors. ADT has the engineering resources to provide customized blades and fine-tuning characteristics according to customer needs, and can provide customers with tailored overall cutting solutions.
The localized blade project is progressing steadily. Localized hard knives are currently in the on-board trial cutting stage. Some models of domesticated soft knives are being verified by customers, and the company is making every effort to advance related work.
After years of hard work, the company has established stable cooperative relationships with leading domestic and foreign sealing and testing companies such as Sun Moon Light, Jiasheng Semiconductor, Changdian Technology, Tongfu Microelectronics, and Huatian Technology.
Profit forecast, valuation and rating: We maintain the company's 23-25 net profit forecasts of 1.02, 1.34, and 177 million yuan respectively, corresponding to the current PE valuation of 87X/67X/50X. Maintain a “buy” rating.
Risk warning: risk of downstream demand falling short of expectations; risk of concentration of major downstream customers; risk of fab company customer verification or introduction progress falling short of expectations; risk of impairment of long-term equity investment.