\u3000\u3000 Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) (688661)
Event:
The company issued the announcement on the advance increase of annual performance in 2021. It is estimated that the net profit attributable to the owners of the parent company will be 98 million yuan to 110 million yuan in 2021, with a year-on-year increase of 59.61% to 79.15%; The net profit attributable to the owners of the parent company after deducting non recurring profits and losses was 87 million yuan to 99 million yuan, with a year-on-year increase of 44.04% to 63.91%.
The company’s annual performance increased rapidly, and seasonal fluctuations affected Q4 performance: the company’s annual net profit attributable to the parent company increased significantly year-on-year, mainly due to: (1) due to the full sales orders of the company’s MEMS Micro parts series products and the continuous release of production capacity, the revenue and profit increased year-on-year; (2) After early customer expansion and product verification, the company’s semiconductor test probe has successfully entered the supply chain system of overseas chip design manufacturers. The newly signed orders have increased significantly compared with the same period last year. It has been rapidly loaded and continuously penetrated in the client, promoting the steady development of the business. From the single quarter of Q4, the net profit attributable to the parent company is expected to be 15 million yuan to 27 million yuan, with a year-on-year increase of – 34.78% to 17.39%, and a month on month decrease of 48.28% to 6.90%; The net profit after deducting non return to parent was 13 million yuan to 25 million yuan, a month on month decrease of 51.85% to 7.4%. Q4’s net profit deducted from non parent company decreased month on month, mainly due to seasonal fluctuations.
With the rapid growth of semiconductor test probes, MEMS shield category is expected to continue to expand horizontally: the company is the leader of semiconductor test probes in China, and its products are mainly used in GPU chips, 5gpa chips, power management chips (WLCSP packaging mode) and DDR4 memory chips. According to the announcement, the company’s products have entered the GPU leading NVIDIA supply chain, and have been applied in mainstream semiconductor testing equipment such as tereda and adewan. In terms of revenue, the company’s semiconductor test probe has grown very rapidly, from 4.88 million in 2018 to 127 million yuan in the first three quarters of 2021, accounting for 45% of revenue. In addition, the company has maintained a leading position in the MEMS fine shield, mastered the stable mass production with a yield of less than 5ppm, and a number of core processes and technologies have reached the international advanced level. It has entered the supply chain system of international advanced MEMS manufacturers. It has significant advantages in customer resources and technology, and its market share is expected to be further improved, It is expected to transfer the technical advantages of acoustic fine shield to pressure sensors and optical fine structures, so as to further strengthen its advantages in the field of MEMS.
Increase the investment in MEMS process wafer test probe, and further open the growth space: the company announced on November 20, 2021 that it plans to raise no more than 700 million yuan. The raised funds are mainly used for: (1) MEMS process wafer test probe R & D and mass production project (invest 440 million yuan); (2) Substrate level test probe R & D and mass production project (invested 120 million yuan to raise funds). According to the prediction of VLSI research, the global probe market will reach US $2.741 billion in 2025, and the probe market in China will reach RMB 3.283 billion, of which the MEMS wafer test probe has accounted for about 60% of the probe market. At present, the vast majority of the global wafer probe card market is occupied by foreign enterprises such as formfactor, MJC and technoprobe, while few Chinese enterprises participate in global competition. The company’s existing probe products are mainly semiconductor chip test spring probes. Through this fund-raising project, the company will develop MEMS process wafer test probe products, further enrich the company’s product line and open a broader growth space.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 406 million yuan, 593 million yuan and 832 million yuan respectively, and the net profit attributable to the parent company will be 104 million yuan, 170 million yuan and 248 million yuan respectively, maintaining the “Buy-A” investment rating.
Risk tip: downstream demand attenuation risk, market competition risk, product R & D is less than expected, and customer expansion is less than expected.
