Event: Helin Weiner showcased a variety of core test interface products at the “2024 Munich Shanghai Electronics Show”, such as MEMS probe cards, stiffeners, change kits, connectors, wire pins, curved pins, various types of probes, various test holders, shielding covers, etc.

Helin Weina specializes in MEMS fine components and semiconductor test probes, and is located upstream of the MEMS and semiconductor industry chain.

The MEMS fine electronic components series products mainly include fine shields, fine connectors and components, and precision structural parts for MEMS devices such as micro microphones, pressure, and optics. Semiconductor chip test probe products are important consumables in semiconductor packaging and inspection, and have formed a dual main business since 2018.

Helin Weiner serves leading global customers such as Goertek, Lixun Precision, and Nvidia. The main customers of fine shielding covers are Goertek and ST Semiconductors, and Linweiner have a 20% share of the MEMS microphone market; the main customers for precision structural components include Lou's Electronics and Adderall. Semiconductor test probe customers include Nvidia and many other major chip and packaging manufacturers.

The MEMS market is growing steadily, and localization is in the early stages. MEMS devices are generally divided into actuators and sensors, with MEMS sensors accounting for about 70% of the market. Common MEMS sensors include inertial sensors, pressure sensors, acoustic sensors, environmental sensors, and optical sensors. According to Yole data, the global MEMS market size is about 13.6 billion US dollars in 2021, and is expected to grow to 22.3 billion US dollars in 2027, with a compound growth rate of 9.0% in 2021-2027; mechanical sensors account for the highest proportion of MEMS sensors in 2021, with pressure sensors and inertial sensors accounting for 14% and 20% respectively; followed by MEMS acoustic sensors, accounting for about 20%.

The localization rate of semiconductor chip test probe series products is low, and Lin Weina is temporarily emerging. Testing in the semiconductor chip production process can be divided into design verification, WAT, CP testing, and FT testing. Semiconductor probes are core components that connect wafers/chips to test equipment for signal transmission, and play an important role in the quality control of semiconductor products. Helin Weina Semiconductor's FT test probe products have been approved by leading chip and testing customers such as Nvidia; in 2022, the horizontal layout of MEMS probes and substrate-level probes; the 2023 annual report shows that the company released a wire needle with a diameter of 30 μm. The product has been verified by leading customers in the market, and the performance can meet the technical requirements of products with the same specifications in Japan and South Korea.

The profit forecast was adjusted and downgraded to a “neutral” rating. Since the introduction of semiconductor probe customers fell short of expectations and the number of employees increased from 352 to 670 in 2021, drastically increasing operating costs, Helin Weina's 2024 net profit forecast was lowered from 0.29 billion yuan to 0.062 billion yuan, and the 2025/26 net profit forecast of 0.11/0.15 billion yuan was added. Semiconductor parts are comparable to the average PE 27X of the company (Jiang Feng Electronics, Longtu Optical Mask, Fuchuang Precision) in 2025, 1% higher than Weina's 2025 PE 27X, and downgraded to a “neutral” rating.

Risk warning: 1) New product expansion of MEMS components falls short of expectations. 2) The expansion of new semiconductor probe products fell short of expectations. 3) Risk of fluctuations in the semiconductor industry chain.