The company is currently the only enterprise in China that has a complete industrial chain from high-end DRAM/flash wafer package testing of integrated circuits to the production of module components. The company has multi-layer stacking packaging technology and is the only enterprise in China that has the qualifications to carry out test and verification cooperation with world-renowned central processor manufacturers. The tested memory products can directly support its servers to be put on the market to help the upstream and downstream of the domestic industry chain achieve rapid verification of its platform. Currently, the company's chip packaging and testing products mainly include DDR3, DDR4, LPDDR3, LPDDR4, eMCP, USB, eMMC, ePoP, SSD, 3D NAND, and fingerprint fingerprint chips. They have mainstream international storage packaging technologies such as WBGA/FBGA, and are continuously developing advanced package FlipChip/ultra-thin wafer invisible cutting technology and embedded system-level chip packaging technology on this basis.
Payton Technology has accumulated rich experience in production and operation, has a perfect governance structure, a professional management team, and a process R&D team with superb technology. With advanced manufacturing technology, combined with SAP material control and MES automated product information systems, the company has gradually developed a pragmatic, mature and integrated management system. At the same time, various quality management systems, such as batch tracking and processing mechanisms for abnormal products, internal review and quality improvement mechanisms, customer standard data and internal document control systems, and supplier management systems, have been developed to ensure the provision of high-quality chip packaging and testing services.
Order the code storage industry, and set up a factory in Hefei to participate in in-depth cooperation in the industrial chain. The company plans to raise no more than 1.71 billion yuan to invest in Payton Storage's advanced storage testing and module manufacturing projects. Project investors also include Big Fund Phase II, Hefei Economic Development Venture Capital, CLP Juxin, etc. The Hefei project is conducive to better serving major domestic storage customers in the future and in-depth cooperation with the industrial chain.
The storage market space is huge, and there are continuous breakthroughs in localization. According to WSTS, the global memory market reached 119.4 billion US dollars in 2020, accounting for about 1/4 of the global semiconductor market. There is huge room for domestic demand, but the localization rate is quite low. Domestic storage Shuangxiong accelerated the expansion of production. Hefei Changxin moved from 19nm to 17nm, accelerated technological upgrading, and set up a factory in Beijing to further expand production. Changjiang Storage Phase II plans a total production capacity of 300,000 tablets. Changjiang Storage began mass production of 64-layer 3D NAND in 2019 and released 128-layer 3D NAND in April 2020, which will accelerate the rise in production capacity and yield in the future.
As an advanced domestic electronic product manufacturer, the company focuses on semiconductor sealing and testing to accelerate the horizontal and vertical integration of the industry. It is expected that as the domestic storage industry gradually matures, the penetration of storage localization continues to increase, and the supporting capabilities of Payton Technology will continue to be strengthened, and there is strong certainty of growth. At the same time, the company is continuously speeding up the upgrading of high-end electronic product manufacturing capabilities, advancing the Shenzhen Science and Technology City project, and speeding up the construction of an industrial base. It is expected that its overall competitiveness will continue to improve. The company's net profit from 2020 to 2022 is estimated to be 841/10.55/ 1,444 billion yuan respectively, covered for the first time and given a “buy” rating.
Risk warning: downstream demand falls short of expectations; project investment progress falls short of expectations
