Key points of investment
Many businesses are progressing smoothly, and profits continue to rise
In 2023, the company achieved revenue of 829 million yuan, an increase of 27.07% over the previous year, and achieved net profit of 179 million yuan, an increase of 31.28% over the previous year. The 24Q1 company achieved revenue of 198 million yuan, an increase of 26.26% over the previous year, and realized net profit of 40 million yuan, an increase of 18.66% over the previous year. The company has accumulated deep experience in the field of direct writing lithography. At the same time, its products continue to expand and expand in the pan-semiconductor field, and the room for growth continues to open up, and its performance is expected to continue to grow rapidly.
The PCB business continues to grow, and the global layout continues to advance
In '23, the company's PCB business achieved revenue of 590 million yuan, an increase of 11.94% over the previous year. In recent years, the trend of PCB manufacturers in the industry to build factories in Southeast Asia has accelerated, benefiting upstream equipment. The company has deployed a global overseas strategy ahead of schedule to increase market construction in Southeast Asia. In '23, the company's equipment was successfully sold to regions such as Thailand, Vietnam, Japan, South Korea and Australia. The business has grown rapidly, and export orders have performed well. At the same time, the company is actively planning to establish a Thai subsidiary, which is expected to comprehensively enhance international competitiveness and provide sufficient impetus for subsequent performance growth.
The pan-semiconductor business has nearly doubled, and advanced packaging equipment progressed smoothly. In '23, the company's pan-semiconductor business achieved revenue of 188 million yuan, an increase of 96.91% over the previous year, and nearly doubled its growth.
In terms of carrier boards, the company's MAS4 equipment has achieved a fine line width of 4 microns, reaching the same level as first-class overseas competitors. Currently, the device has been sent to the client for verification.
In terms of advanced packaging, the company has a layout for both wafer-level and panel-level equipment. In addition to the advantages of cost and ease of operation brought by no mask in advanced packaging, the company's direct writing lithography equipment has advantages in rewiring, interconnection, intelligent correction, and application to large-scale chip packaging. Currently, it has cooperated with well-known customers such as Huatian Technology and Shaoxing Changdian. The equipment is progressing smoothly on the client side, and has received continuous repeated orders from leading advanced packaging customers in mainland China.
According to statistics from Yole and Jimei Consulting, the global sealing and testing industry will grow from US$81.5 billion to US$96.1 billion in 2026, with a CAGR of 4.2%. As the advanced packaging industry continues to expand, the company's pan-semiconductor business is expected to continue to grow.
Profit forecasting and valuation
We expect the company's revenue for 2024-2026 to be 1.08 billion yuan, 14.0 billion yuan, and 1.77 billion yuan, respectively; net profit to mother will be 2.3, 3.0, and 380 million yuan, respectively, with year-on-year growth rates of 30.1%, 28.9%, and 25.8%, respectively, corresponding to PE 36, 28, and 22 times, respectively, maintaining the “buy” rating.
Risk warning
Risk of cyclical fluctuations in the industry, business development falling short of expectations, etc.