Strategic transformation focuses on semiconductor business, and endogenous epitaxy continues to expand.
Since its inception, taking the sensor terminal application as the starting point, the company has successfully extended its business to the upper reaches of the industrial chain through endogenous development and epitaxial mergers and acquisitions. At present, the process development and wafer manufacturing of MEMS chips have become the company's main core business. The company issued an announcement on the acquisition of German production line assets by Swedish subsidiaries in December 2021, further expanding the scope of the company's core business of sensor and chip process manufacturing to the field of automotive electronics, rapidly increasing the overseas production capacity compatible with MEMS and CMOS chip integrated process manufacturing, and improving the company's comprehensive competitiveness in the world.
MEMS manufacturing technology leads the world, production capacity climbing promotes performance, MEMS downstream applications mainly include consumer electronics, industrial control, communications, automotive, medical and other fields. Because the MEMS device has the advantages of small inertia, high resonant frequency and short response time, its application continues to improve.
According to Yole, the global MEMS market will be $12.1 billion in 2020 and is expected to grow to $18.2 billion in 2026, with a compound annual growth rate of 7.2 per cent. The company is the world's leading MEMS contract manufacturing enterprise, its subsidiary Sweden Silex capacity continues to expand, FAB1&FAB2 through the purchase of key equipment to continue to increase the overall production capacity of the production line. At the same time, the company's holding subsidiary Selex Beijing "8-inch MEMS International OEM Line" (Beijing FAB3) the first phase of the scale production capacity (10,000 pieces / month) has officially started mass production, the second phase scale production capacity (20,000 pieces / month) has started construction. In addition, Selex Beijing also signed the Strategic Cooperation Framework Agreement with Yige Minsi and Wuhan Minsheng in August 2021 and decided to carry out long-term strategic cooperation in the field of 8-inch wafer foundry of "radio frequency filter chips". Work together to build customized special capacity that can fully meet the needs of contract manufacturing of RF filter chips. With the wide expansion of MEMS terminal equipment and the growing demand for related products, the company's revenue is expected to continue to increase as production capacity climbs.
Actively expand GaN business and have made a number of breakthroughs
In terms of GaN epitaxial materials and chips, the company has begun to sign mass sales contracts and deliver them one after another to promote R & D and launch different specifications of power chip products and applications. In addition, the company continues to lay out the GaN industrial chain, and its subsidiary Jueneng Chuangxin actively promotes the accumulation of technology, technology and products to meet the needs of the next generation of power and microwave electronic chips for GaN epitaxial materials and GaN chips.
Investment suggestion: in 21-23, we expect the company to achieve a net profit of 1.54 million yuan per share. Considering that the company is in a period of rapid growth in capacity release, and with reference to the 22-year PE average of comparable companies, we give the company 60 times PE, corresponding to a market capitalization of 23.1 billion yuan and a price of 31.64 yuan per share for the first time.
Risk hints: downstream application demand is lower than expected risk, foreign investment is less than expected risk, R & D progress is less than expected risk, business scale expansion brings operation and management risk