Event

Qiangli Xinliao released its semi-annual report for 2023: the company's operating income in the first half of 2023 was 388 million yuan, down 29.01% from the same period last year; the net profit attributed to shareholders of listed companies was-15 million yuan, down-129.80% from the same period last year.

Main points of investment

Under the continued impact of the macroeconomic environment, the company's performance was under pressure in the short term. In the first half of 2023, the company realized operating income of 388.3139 million yuan, down 29.10% from the same period last year, and realized net profit of-15.1846 million yuan, down 129.80% from the same period last year. Due to the continued impact of the macroeconomic environment, performance is still declining. Administrative expenses decreased by 10.79% compared with the same period last year. Affected by the macro-economy, the company's performance is under pressure in the short term.

Deep ploughing photoresist field core enterprises, an important part of the global industry chain photoresist is mainly used for fine circuit graphics processing in the field of microelectronics, is one of the most critical materials in the field of micro-manufacturing, it is an important material for PCB production, plays an important role in promoting the large size, high precision and color of LCD panels, and is the key material to determine the level of semiconductor chip manufacturing process. According to Japanese Fuji economic statistics, the size of the global photoresist market in 2020 is about 5.05 billion US dollars, of which PCB photoresist market is about 1.79 billion US dollars, LCD photoresist market is about 1.32 billion US dollars, semiconductor photoresist market is about 1.94 billion US dollars; in 2026, it will reach 2.08 billion US dollars, 1.29 billion US dollars and 2.9 billion US dollars respectively, totaling about 627 billion US dollars. The market size of photoresist in China is about 8.8 billion yuan in 2020, and is expected to grow at a compound annual growth rate of 10% in the next four years. By 2024, the market size of photoresist in China will exceed 14 billion yuan, and the market demand for special electronic chemicals for photoresist will continue to increase. The company is one of the few enterprises with special electronic chemicals for photoresist in China. Technology and products have covered the key raw materials in the main types of photoresist, such as PCB dry film photoresist, LCD photoresist, semiconductor photoresist and so on, which is an important part of the global photoresist industry chain. Based on the company's many years of professional production and R & D experience, the company has a series of competitive R & D, production and testing technologies, such as monomer functional evaluation technology, special purification technology, ppb metal ion content analysis and testing technology, which can produce high-performance and high-cleanliness photoresist to achieve fine electronic device circuits or graphics.

▌ Huawei Mate60 release, advanced packaging industry chain may benefit, the company's products are expected to cut into the semiconductor closed testing field

Advanced packaging is to deconstruct complex SoC chips, realize multiple module chips and underlying basic chips through die-to-die internal interconnection technology, and finally integrate into a system-level chip to achieve a new form of IP reuse. Among them, Chiplet is the most typical kind of advanced packaging, in which the core is that an additional silicon layer is placed between the substrate and the bare chip between the Interposer and the microbumping,Interposer between the chip, which can realize the interconnection and communication between the bare chip. The intermediary layer is a silicon substrate with TSV through holes fabricated by plasma etching on silicon substrate. The fabrication of RDL on the front and back of the silicon substrate can provide the interconnection basis for the chip integrated on the TSV and the silicon substrate. The electrical performance interconnection between chip and adapter board, adapter board and package substrate can be finally realized by micro-bump (ubump) and C4 bump (C4bump) on silicon substrate. 3D packaging is a kind of packaging which is connected directly through silicon perforation on the wafer in order to further compress the bump density on the basis of 2.5D packaging technology. the minimum bonding distance of this method is 9 μ m. Because the chip itself removes the bump, the thickness of the integrated stack becomes thinner, so the chip thickness can be as thin as 20-30 um. This reduces the parasitic effect of chip signals and improves the performance of the system. The company's semiconductor-related products are expected to be used in the Interposer of advanced packaging and the micro-bumping between chips. With the further penetration of advanced packaging, it is expected to accelerate the wide application of related products in the field of packaging materials.

Profit forecast

It is predicted that the income of the company from 2023 to 2025 is 927,15.2 and 2.097 billion yuan respectively, and the net profit is 20 million, 150 million and 200 million yuan respectively, and the current stock price corresponding to PE is 283.4, 37.8 and 28.3 times respectively. Advanced packaging benefits from the further expansion of domestic mobile phones, advanced packaging requires photosensitive polyimide (PSPI), the company's photoresist products are expected to enter the field of advanced packaging, empower the company's performance, cover the company for the first time, and give a "buy" investment rating.

Risk hint

The risk of increased competition in the industry; the risk of research and development of new products and new technologies; the management risk caused by the expansion of the company; the progress of products in the field of packaging is not as expected.