\u3000\u3 Guocheng Mining Co.Ltd(000688) 383 Shenzhen Xinyichang Technology Co.Ltd(688383) )
On March 28, Shenzhen Xinyichang Technology Co.Ltd(688383) released a voluntary disclosure announcement on the pre increase of performance in the first quarter of 2022. The company expects to realize a net profit attributable to the parent company of 65-70 million yuan in Q1 of 2022, with a year-on-year increase of 68.66-81.63%; The non net profit deducted is expected to be 64.72-69.72 million yuan, with a year-on-year increase of 70.19-83.34%.
All product lines grew together, and Q1 achieved brilliant results. The company expects to realize a net profit attributable to the parent company of 65-70 million yuan in Q1 of 2022, with a year-on-year increase of 68.66-81.63%, mainly due to the company’s continued advantages in the industry, and the revenue of traditional LED solid crystal machine, miniled equipment and semiconductor equipment increased significantly compared with the same period of last year. Meanwhile, the company’s 2021 IPO project Zhongshan Industrial Park will be put into operation in succession. With the existing capacity in Shenzhen, the company expects the annual capacity of equipment to reach about 2 billion, which will support the long-term growth of the company’s business scale.
Miniled market continues to grow and leading manufacturers continue to benefit. In 2021, LED display screen developed rapidly in the direction of high definition, which promoted the prosperity of miniled industry. Under the demonstration role of Samsung and other leading manufacturers in continuously promoting miniled TV products, major manufacturers in the industry have made layout in miniled and microled. Looking forward to 2022, the company expects that miniled will also have a good performance in the small and medium-sized screen market, and products such as laptop, tablet and E-sports display are expected to give priority to large-scale production.
In the field of miniled solid crystal machine, Shenzhen Xinyichang Technology Co.Ltd(688383) continues to carry out technical iterations, update equipment performance, maintain leading edge and maintain high profitability. At present, the company’s average gross profit margin of miniled products is about 60%, and it is expected to further increase the equipment transfer rate to 180K / h within the year. As a leading manufacturer of LED solid crystal equipment in China, the company has 90% customer coverage in the traditional LED market. With the continuous penetration of miniled, the company is expected to benefit from the incremental demand of downstream for a long time.
Kaijiu team runs in smoothly, and the semiconductor wire bonding machine products have been verified by customers. Semiconductor packaging equipment is another growth point of the company except miniled. The company’s semiconductor products in the early stage were mainly power device packaging equipment. In 2021, the company completed the acquisition of kaijiu automation, integrated resources and enhanced the business capacity of semiconductor equipment. At present, the company and its subsidiary kaijiu are integrated smoothly in all aspects. While maintaining the sales of optical communication wire bonders and other equipment, kaijiu cooperates with the company in the overall layout and research and development of LED and semiconductor wire bonders. The company also promotes kaijiu to strengthen R & D through the support of capital, manpower, technology and other resources. At present, semiconductor welding line equipment is in customer verification. According to semi’s prediction, the global market space of semiconductor packaging and testing equipment will be US $7 billion in 2021, and the long-term space will be greater than that of LED. The development of semiconductor welding line business opens up new growth space for the company.
Investment suggestion: we expect the company’s revenue from 2021 to 2023 to be RMB 1.197/1.561/1.987 billion respectively, and the net profit attributable to the parent company to be RMB 231/3.25/444 million respectively. The PE corresponding to the current share price is 41 / 29 / 21 times respectively. We are optimistic about the growth space of the company in the field of miniled and semiconductor packaging equipment, and give a “recommended” rating for the first time.
Risk warning: product verification is not as expected; Cyclical fluctuations in downstream industries; Market competition intensifies.
