Summary content
The technical strength of microfabrication is strong, and performance growth points are continuously explored through outreach. Helin Weina focuses on micro precision manufacturing. Its main products include MEMS microelectronic component series products and semiconductor chip test probe series products. Downstream customers include leading companies such as ST, Goertek, Lou's Electronics, and Nvidia. From 2017 to 2021, the company's performance continued to grow rapidly, with operating income and four-year CAGR of net profit reaching 41.2% and 42.7% respectively. The company has mastered the core technology of fine manufacturing, continuously expanded its outreach based on the fine manufacturing technology platform, and explored new performance growth points.
The market share in the MEMS segment is leading, and new products continue to be developed and expanded. The company's MEMS microelectronic component products are mainly used in MEMS microphones, and the terminal products are mainly consumer electronics products such as smartphones, TWS headphones, and smart watches. The company has high-quality customer resources and a leading market position. In 2019, the company's market share in the MEMS microphone shield field reached 19%. The company continues to expand beyond the original field of acoustic sensors and pressure sensors, and has launched new products such as MEMS waterproof gas sensor shields, MEMS pressure sensor shields, and MEMS optical sensor microstructural components according to customer needs. Some have already entered the mass production stage, opening up room for medium- to long-term growth for the company's MEMS product business.
The probes entered the supply chain of top customers, and MEMS probes and substrate probes were deployed to help domestic substitution.
The company's semiconductor chip test probe business grew rapidly, reaching a CAGR of 217.4% in 2018-2021. Currently, there is broad scope for domestic substitution in the semiconductor chip industry chain, and with the gradual increase in the voice of semiconductor packaging and testing companies, it has brought the company an opportunity to accelerate substitution. In November 2021, the company announced a fixed increase plan. It plans to raise no more than 700 million yuan to be used for MEMS process wafer test probe R&D and mass production projects, substrate-level test probe R&D and mass production projects, and supplementary working capital. After the semiconductor test probes were successfully released, the company laid out CP and high-end substrate probes, further opening up the company's growth ceiling.
Profit forecast and rating: We expect the company's net profit to be 155 million yuan, 220 million yuan, and 309 million yuan respectively in 2022, 2023, and 2024, and EPS of 193, 2.76, and 3.87 yuan/share, respectively. Based on the valuation levels of comparable companies, we gave the company 40X PE in 2023, with a corresponding target price of 110.21 yuan, covering the “buy” rating for the first time.
Risk warning: High risk of customer concentration, risk of changes in international trade policies, risk of exchange rate fluctuations, risk of new product development falling short of expectations, and increased risk of industry competition.