Incidents:

Recently, Minxin Co., Ltd. issued an announcement to complete the fixed increase fund-raising project. The total amount raised was 126 million yuan, the number of shares issued was 2.29 million shares, and the issue price was 54.99 yuan/share. A total of 6 people participated in the subscription in cash.

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Steady increases and land, opening up room for growth. With the rapid growth of industries such as downstream new energy vehicles, demand in the sensor market is expected to increase further. The funds raised this time will be used to invest in R&D in the fields of automotive and industrial pressure sensors, micro differential pressure sensors, etc., strengthen staffing in core technical fields, continuously enhance the company's core competitiveness, and seize industry development opportunities.

The active layout of the sensor field is expected to create a new growth pole. The company revealed in the investor relations activity record sheet on December 22 that in 2024, in addition to the main product acoustic sensors, the relatively clear product layout mainly focuses on consumer pressure sensors, automobile pressure modules, differential pressure products, and accelerometers; in addition, it also has product research and development agencies in the fields of six-dimensional sensors, force touch, etc., and has mature technology accumulation, and R&D progress is progressing according to plan.

With the development of emerging fields such as humanoid robots, demand for components such as six-dimensional sensors is gradually following the industry's explosive growth. According to our forecast in “Special Topic on Humanoid Robots (Part 1): History, Change, and Future”, the demand for the industrial scene will reach 3.284 million units by 2030, and the demand for the home & business scenario will reach 435,000 units, and the overall market size is close to 40 billion US dollars. Therefore, the company is currently actively deploying products in emerging fields such as six-dimensional sensors, and is expected to seize downstream market demand trends and open up new growth poles in the future.

We have a strong accumulation of technology, and the future potential is limitless. As the only listed company in China that has mastered multi-category MEMS chip design and manufacturing process capabilities, the company is committed to becoming an industry-leading MEMS chip platform enterprise. After years of technology accumulation and R&D investment, the company has independent R&D capabilities and core technology in all aspects of existing MEMS sensor chip design, wafer manufacturing, packaging and testing. At the same time, it can independently design ASIC chips that provide signal conversion, processing or driving functions for MEMS sensor chips, and has localized the entire MEMS sensor production process.

Profit forecast: Optimistic about the company's technology accumulation and active layout in the sensor field. In the future, it is expected to benefit from the explosion of downstream market demand in various fields and create a new growth pole. We expect the company to achieve operating revenue of 374/5.09/ 678 million yuan in 2023-2025, corresponding PS 10/7/6 times. The 2024 PS valuation was 8 times, and the target price was 72.8 yuan. It was covered for the first time, and a “gain” rating was given.

Risk warning: Downstream demand falls short of expectations, profit forecasts and valuation judgments fall short of expectations.