Suzhou Hyc Technology Co.Ltd(688001) (688001)
Based on panel testing equipment, semiconductors open up growth space: the company is a leading supplier of panel testing equipment in China. Its traditional business is mainly OLED panel testing. It has acquired olitone overweight wearable equipment testing, and actively developed semiconductor, micro display and new energy vehicle related testing equipment. According to the announcement, in semiconductor, the company focuses on SOC, RF tester and sip tester. The company’s SOC tester can meet the CP test of 32-bit MCU, high-pixel CIS, fingerprint and complex SOC chip. Many indicators can be compared with the same type of overseas best-selling models, and the client batch installation has been completed recently. On the RF testing machine, the company is the first manufacturer in China to independently develop sub-6g RF vector signal transceiver board, breaking the situation that China completely relies on imported equipment and imported RF vector board in the field of 5g RF special testing, and obtaining Will Semiconductor Co.Ltd.Shanghai(603501) batch orders. On SIP, the company launched a test solution for pxie testing machine to carry and test 128 station SLT sorter. At present, it has been recognized by goer electronics and other upstream SIP (advanced packaging) manufacturers of wearable devices, and has entered the stage of large-scale procurement. The company’s semiconductor testing business has grown from scratch and has successfully passed the technology R & D period and the initial stage of customer development. In addition to the customized BMS chip testing equipment for Apple mobile phone, four standard testing machines and two standard sorting machines have formed mass sales revenue. In the future, the company will further develop customers of China’s first and second tier large seal test plants and independent third-party test plants, promote the installed capacity of the company’s standard test equipment, and fully benefit from the domestic substitution trend of semiconductor back channel test equipment.
Prospect of mircooled and new energy vehicle detection: microoled technology attaches OLED to silicon wafer, which can achieve ultra-high resolution. It is the technology most suitable for AR / VR near eye display at present. The company is a leader in the layout of micro OLED testing equipment in the industry. Relevant products have been verified by downstream customers Sony and international consumer electronics terminal customers. It is cooperating with downstream customers to carry out preliminary R & D and trial production for subsequent mass production of products. It is expected to fully benefit from the popularity of micro OLED in Ar / VR / MR applications in the future. On new energy vehicles, according to the announcement, the company has formed a number of independently developed technical patents, the company has obtained Tesla‘s supplier qualification, and has delivered equipment to Shanghai Tesla. In addition to Tesla, the company is also actively promoting the cooperation of China’s first-line electric vehicle manufacturers to match customer needs.
There is a wide space for domestic substitution of semiconductor testing equipment: according to semi data, the market scale of back channel testing equipment will be US $6.01 billion in 2020 and is expected to be US $7.58/8.03 billion in 2021 / 2022, with a year-on-year increase of 26.3% / 5.9%. In the latter test equipment, in 2020, the tester, sorter and probe stand accounted for 63%, 17% and 15% respectively, and the corresponding market scale was US $3.8 billion, US $1 billion and US $900 million respectively. Among the testing machines, SOC, storage, analog and RF testing machines accounted for 58%, 22.5%, 15% and 4.5% respectively in 2020. At present, the vast majority of the global test equipment market is occupied by overseas manufacturers such as Edwin, tereda and Kexiu. China has taken the lead in making breakthroughs in analog testing machines, and the localization rate has reached a high level. However, it is basically blank in SOC, storage and RF testing machines. The company aims at SOC and RF testing machines with high share, and the product layout is leading in China, It is expected to fully benefit from the domestic substitution trend of rear channel test equipment in the future.
Issuance of overweight wearable, micro display and sip testing equipment for convertible bonds: the company successfully issued convertible bonds and raised a total of 800 million yuan, mainly using wearable devices, micro display and sip related testing equipment. The first phase of the “new intelligent automation equipment and precision detection equipment production project” mainly invests in smart watch detection and assembly equipment, and the second phase invests in wireless headset detection equipment. The implementation of this project can not only consolidate the company’s advantages in smart watch detection, but also enrich the company’s product system in the field of wearable devices, Fully grasp the high growth of wearable device market demand. In terms of micro display, the company’s “R & D and production project of new micro display testing equipment” aims at the micro OLED market, gives full play to the company’s deep technical accumulation in the field of flat panel testing, and helps the company lock in the micro OLED gold track. In addition, the convertible bond will also invest in the “semiconductor SIP chip test equipment production project”. As the physical limit of wafer foundry process approaches, the importance of packaging technology to chip performance is becoming more and more prominent. At present, mainstream wafer foundry manufacturers begin to layout SIP and other advanced packaging technologies. Through this convertible bond overweight SIP detection equipment, the company will further strengthen its leading edge and is expected to continue to benefit from the rapid development of SIP packaging in the future.
Investment suggestion: it is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 2083 million, RMB 2518 million and RMB 3016 million respectively, the net profit attributable to the parent company will be RMB 342 million, RMB 405 million and RMB 551 million respectively, and the EPS will be RMB 75 million, RMB 92 million and RMB 125 million respectively. With reference to the pe55 times of the semiconductor equipment index (8841321. WI) in 2022 (according to the consistent expectation of wind, as of January 4, 2022), the target price is 50.60 yuan (corresponding to 55 times of PE in 2022), and the investment rating of “Buy-A” is given.
Risk tips: customer expansion is less than expected, downstream demand is less than expected, and domestic substitution is less than expected.
