A leading company in direct writing lithography equipment, expanding its business in both vertical and horizontal directions. Chipset has accumulated deep experience in direct writing lithography technology. At the same time, its products are also continuously expanding in the pan-semiconductor field, and strategic cooperation is being carried out with leading customers in various segments. As a leading domestic direct writing lithography equipment company, as domestic demand for high-end PCBs grows and the demand for localization rates increases, and the company accelerates the layout of carrier boards, advanced packaging, new displays, mask plate making, power discrete devices, photovoltaic copper plating, etc., related products will further increase the breadth of the company's product line coverage and broad room for growth.

The high-end + internationalization + big customer strategy has been very effective. Compared with traditional exposure, direct writing lithography technology has advantages in many aspects such as exposure accuracy, yield, cost, flexibility, and production efficiency. It can meet the technical requirements of high-end PCB products, and has gradually become the mainstream technical solution for exposure processes in PCB manufacturing. The company actively grasps the development trend of the downstream PCB manufacturing industry, focuses on high-end circuit boards such as HDI boards, large MLB boards, and IC carrier boards, continuously improving the technical level in the field of PCB circuits and solder mask exposure, and has rapidly increased the product market penetration rate with product stability, reliability, cost performance and localized service advantages. In terms of internationalization, the company is actively building overseas sales and operation and maintenance teams to accelerate overseas market expansion. In 2022, the company's equipment was sold to the Japanese and Vietnamese markets, and in 2023, the company's equipment was successfully sold to regions such as Thailand, Vietnam, Japan, South Korea and Australia, and the export order performance was good. In terms of customer layout, the company has increased and expanded high-quality customer resources, and coverage continues to increase. The company continues to deepen cooperation with customers such as Shengyi Electronics, Shenghong Technology, Dingying Electronics, Shanghai Electric Power Co., Ltd., Shennan Circuit, and Red Board. The order situation of leading international manufacturer Pengding Holdings is good.

Pan-semiconductors have fully expanded their application fields, and advanced packaging equipment is progressing smoothly. The company continues to expand in the field of pan-semiconductors, and the application of direct writing lithography technology continues to deepen. The products can be used in IC, MEMS, biochips, discrete power device manufacturing, IC mask manufacturing, advanced packaging, display lithography, and photovoltaic copper plating. In terms of carrier boards, advanced packaging has driven the growth of the ABF carrier board market. Among them, MAS4 equipment has achieved a fine line width of 4 microns, reaching the same level as first-class overseas competitors; in terms of advanced packaging, in addition to the advantages of cost and ease of operation brought by no mask, the company directly writes that in advanced packaging, in terms of rewiring, interconnection, intelligent correction, and application to large area chip packaging.

Profit forecasting, valuation and ratings: The global PCB and semiconductor market is under great pressure in 2023 due to macroeconomic factors such as weak terminal market sentiment and economic slowdown, and the impact is likely to continue. We lowered the company's net profit forecast for 2024-2025 to RMB 240/337 million, a decrease of 19%/22% from the previous one. The additional company's net profit forecast for 2026 was 417 million yuan, corresponding to PE34/25/20X. We are optimistic about the company's long-term growth potential and maintain the “gain” rating.

Risk warning: downstream demand falls short of expectations; market competition intensifies.