Deeply involved in glass-based packaging technology, production capacity expansion continues to advance
With its low expansion coefficient, low expansion and contraction, low plate warpage, and high graphical accuracy, glass base is an ideal choice for chip packaging substrate materials. It can meet high-precision technical requirements and provide more space for cost reduction, and is expected to soon be used for advanced packaging.
In order to continue improving the company's forward-looking layout in glass-based semiconductor advanced packaging boards, in February 2024, the company acquired 70% of Hubei Tonggewei's shares and completed commercial and commercial changes. Hubei Tonggewei became a wholly-owned subsidiary of the company. In addition, the company plans to increase the capital of Hubei Tonggewei by RMB 180 million with its own capital. Hubei Tonggewei continues to invest in the construction of a chip board-level sealing board project with an annual output of 1 million square meters. The total investment amount of the project is estimated at 1,216 billion yuan. Hubei Tonggewei is currently building a new plant of 69,120.00m? It is used to build an automated production line for glass-based chip board level encapsulation boards to form a large-scale sealing board production capacity, help the company maintain its pioneering advantage in the field of glass-based packaging, and further enrich the company's product system.
. Mini LED backlit display accelerates penetration, releasing production capacity to help increase performance
As a new generation of LCD display, Mini LED backlight can greatly improve the LCD display effect, achieve a display effect almost similar to OLED, while also reducing power consumption, improving service life, reducing costs, and increasing the localization rate. At the same time, glass substrates also have better performance and cost advantages in mini LED backlight displays. Compared with PCB substrates, they can better support COB packages or even micro chip packages of real miniLED chips. Dehong Display, a wholly-owned subsidiary of the company, completed a glass-based Mini/Micro LED substrate production project in 2023, with a glass base of 1 million meters? The production line has made a major breakthrough in mass production. Currently, it is in the phase of small-batch production and production capacity climbing. With the gradual construction of production capacity, the cost of glass-based Mini LED backlights is expected to drop further and there is room for continuous product form optimization. The penetration rate of glass-based Mini LED backlights in MNT, laptops/pads, vehicles, TVs, etc. will continue to increase. In addition, the automotive glass QD board independently developed by the company can solve the problems of low fluorescent film color gamut and environmental tolerance of QD quantum dot film. Combined with Mini LED backlight, it can greatly improve the automotive display user experience, and is expected to become the core solution for Mini LED backlight applications in the field of automotive displays.
. TGV technology applications continue to break through, and field advantages continue to strengthen. Compared with silicon through hole (TSV) interconnections, glass through hole (TGV) interposers have the advantages of excellent high frequency electrical characteristics, simple process, low cost, and adjustable thermal expansion coefficient CTE. The company is one of the few manufacturers in the world that have mastered TGV technology at the same time. High-quality TGV achieved through glass materials and hole processing technology can miniaturize equipment in various markets such as data centers, 5G communication networks, and IoT devices, and achieve high-density packaging and data processing at GHz speed. At the same time, since the glass base has better heat dissipation and helps reduce power consumption, it also has some application space in fields such as high-computing power data center servers. The application of TGV technology is expected to surpass Moore's Law and achieve further development in the semiconductor industry. By the end of 2023, the company's various products, such as TGV carrier boards and optical devices, have been verified by well-known customers in the industry, and the company's TGV technical capabilities and production capacity layout are in an absolute leading position in the industry.
. Profit forecast
It is predicted that the company's revenue for 2024-2026 will be 24.97 billion yuan, 33.07 billion yuan, and 4.257 billion yuan for EPS, respectively. The current stock price is 33.3, 19.8, and 15.4 times PE, respectively. The company actively lays out glass substrates. With continuous breakthroughs in the application of TGV technology, the company is expected to benefit from the smooth release of production capacity for Mini/Micro LED products. It is expected that the company's performance will grow and maintain a “buy” investment rating.
. Risk Alerts
The risk of production capacity release falling short of expectations, risk of downstream demand falling short of expectations, and increased risk of market competition.