Event
On July 6, the company issued a preliminary plan to issue shares to specific objects through a summary procedure. The total amount of shares to be subscribed for this issue is 150 million yuan, the number of shares issued is 2727768 yuan, and the issuing price is 54.99 yuan per share. Among them, 50 million yuan is used for the annual production of 6 million automotive and industrial-grade sensors and 100 million yuan for micro-differential pressure sensor R & D projects.
Main points of investment
Domestic MEMS leading enterprises, Dingzeng project has a broad market space. As the only listed company mastering multi-category MEMS chip design and manufacturing process capabilities, the existing MEMS sensor chip design, wafer manufacturing, packaging and testing all have independent R & D capabilities and core technology, while being able to independently design ASIC chips that provide signal conversion, processing or driving functions for MEMS sensor chips, and realize the localization of all production links of MEMS sensors. The funds raised in this issue are mainly invested in automotive and industrial sensors and micro-differential pressure sensors, mainly used in automotive, industrial, electrical, medical and other fields. According to the statistics and forecasts of Omdia, the global automotive and industrial pressure sensor market will exceed 1 billion in 2021 and is expected to exceed 1.4 billion in 2026. According to statistics from the Ministry of Industry and Information Technology and the National Bureau of Statistics, China's washing machine production has increased from 72.615 million in 2018 to 91.063 million in 2022, maintaining a growth trend for five consecutive years. According to the statistics of the forward-looking Industrial Research Institute, the market demand of China's smart gas meter industry in 2022 is close to 50 million units, a year-on-year growth rate of about 9.55%. In 2021, China's innovative ventilator market exceeded 40 billion yuan. The application scene of MEMS sensor is rich, and the market space for industry development is broad.
Expand the production capacity of MEMS sensors and continue to develop the field of automotive and industrial control. Automobile is the traditional application market of MEMS sensor, the penetration of new energy vehicles will usher in a faster growth window, and the automotive pressure sensor industry will fully benefit. With the acceleration of industrial automation, the demand for high-precision and high-reliability sensors continues to expand. After years of research and development and industrialization exploration, the company has formed a series of pressure sensors and module products, and accumulated certain customer resources in the field of automobile and industrial control.
Under the background of the rapid growth of downstream market demand, the company will continue to expand the production capacity of pressure sensors through the implementation of the fixed increase project, further enrich the product structure, and seize the market opportunity of the rapid development of the sensor industry in automotive, industrial control and other fields.
Grasp the first-mover advantage of technology, add code micro-differential pressure sensor business. The company has technical advantages in the R & D and production of micro-differential pressure sensors, and has reached a stable cooperative relationship with a number of well-known customers at home and abroad in different fields such as household appliances, medical equipment, automobiles and so on. The R & D investment in this "micro-differential pressure sensor R & D and production project" is mainly used for the research and development and trial production of micro-differential pressure sensor related products, and the relevant R & D work will be carried out synchronously with the project construction. the company's rich R & D and production experience in the field of micro-differential pressure sensors and technology lead the company to seize the opportunity in the downstream market and occupy a favorable position in the market competition in related application fields.
Investment suggestion
We estimate that the company's 2023, 2024, and 2025 earnings will be 0.24, 0.57 and 0.86 million, respectively, and the current share price will be 138,57 and 38 times of PE in 2023-2025, respectively, with a "buy" rating.
Risk hint
Downstream demand is lower than expected; competition in the industry is intensified; the progress of additional issuance is not as expected; new projects are not as expected.