\u3000\u3000 Shenzhen Xinyichang Technology Co.Ltd(688383) (688383)
Matters:
The company released the performance forecast for 2021. It is estimated that the net profit attributable to the owners of the parent company in 2021 will be 220 million yuan to 235 million yuan, an increase of 112-127 million yuan compared with 2020, a year-on-year increase of 104.61% to 118.56%.
Ping An View:
The performance forecast increased sharply, miniled & semiconductor two wheel drive: the company released the performance forecast for 2021. It is estimated that the net profit attributable to the owners of the parent company in 2021 will be RMB 220 million to RMB 235 million (the net profit attributable to the parent company after deducting non recurring profits and losses is RMB 210 million to RMB 225 million), which will increase by RMB 112-127 million compared with 2020, with a year-on-year increase of 104.61% to 118.56%, The company’s performance is in line with expectations. On the one hand, benefiting from the improvement of the prosperity of the LED industry and the good development trend of miniled, the revenue of miniled solid crystal machine increased from RMB 1.1593 million in 2020q3 (single quarter) to RMB 46.619 million in 2021q3; On the other hand, through continuous R & D and market development, the revenue of semiconductor solid crystal machine increased from RMB 3053100 in 2020q3 (single quarter) to RMB 38091500 in 2021q3. After years of development and precipitation, the company has continuously enriched its product categories and broadened its service fields. It has become a leading enterprise in the field of LED solid crystal machine and capacitor aging test intelligent manufacturing equipment in China. The company’s semiconductor solid crystal machine market has been well developed. At the same time, actively expand semiconductor wire bonding machines.
Benefiting from the outbreak of miniled, the company’s LED crystal fixing machine has entered a rapid growth stage: the company is a leading enterprise of LED crystal fixing machine in China, and its customers include Foshan Nationstar Optoelectronics Co.Ltd(002449) , Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) , Shenzhen Mtc Co.Ltd(002429) , Sanan Optoelectronics Co.Ltd(600703) , Tianshui Huatian Technology Co.Ltd(002185) , Hongli Zhihui Group Co.Ltd(300219) , Shenzhen Refond Optoelectronics Co.Ltd(300241) , Ledman Optoelectronic Co.Ltd(300162) , Xiamen Xindeco Ltd(000701) , crystal Taiwan Co., Ltd. and other well-known companies, and has maintained good cooperation with international well-known manufacturers Samsung and yioptoelectronics, In 2020, the company’s LED solid crystal machine accounted for more than 60% of the Chinese market. The company’s LED solid crystal machine revenue is expected to grow rapidly: first, the miniled market is about to break out, and the company’s demand for miniled solid crystal machine is strong. The competitors of miniled solid crystal machine include asmpt and K & S. with price and service advantages, the company is expected to become the first choice for Chinese manufacturers and share the dividends of miniled. Second, the traditional LED solid crystal machine will benefit from the recovery of the LED market and the capacity expansion under the integrated layout of chip factories, and the revenue will grow steadily.
Benefiting from the expansion of semiconductor packaging and testing capacity and the domestic substitution of equipment, the company’s semiconductor solid crystal machine has formed a new increment: the company is a representative enterprise in the field of domestic semiconductor solid crystal machine. Its products are mainly used for power device packaging and gradually develop IC solid crystal machine business. Customers include crystal guide micro, canrui technology, Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , solid technetium electronics and other companies. In July 2021, the company acquired 75% equity of Shenzhen kaijiu automation equipment Co., Ltd. for 45 million yuan (kaijiu automation’s operating revenue from January to June 2021 was 20.5387 million yuan, net profit was 5.4564 million yuan and total assets were 43.4823 million yuan), further extending its product range in the field of semiconductor packaging equipment. The company’s semiconductor equipment products benefited from the recovery of the semiconductor sealing and testing market in the short term and the domestic substitution of semiconductor equipment in the long term, becoming a new pole of the company’s performance growth.
Investment strategy: we maintain the previous profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 234 million yuan, 361 million yuan and 466 million yuan respectively, and the corresponding PE will be 52 times, 33 times and 26 times respectively. As the leader of China’s solid crystal machine and capacitor aging test equipment, the company has benefited from the explosion of miniled and the capacity expansion of LED and semiconductor sealing test manufacturers in the short term, and from domestic substitution in the long term, with high growth performance. Maintain the company’s “recommended” rating.
Risk tips: 1) the development of miniled market is less than the expected risk. If the development of miniled backlight and direct display market is less than expected, the procurement volume of relevant equipment will be lower than expected, affecting the growth opportunities of relevant equipment of the company. 2) Risk of technical iteration of miniled equipment. At present, there are many mini / mcroled transfer equipment R & D with different technical routes, including competitors. If the company fails to keep pace with the market and new technologies are quickly introduced into the market, it may have an impact on the company’s business. 3) The risk of slowing down the expansion of semiconductor packaging and testing capacity. If the current round of semiconductor packaging and testing capacity expansion slows down, or the domestic substitution of the company’s semiconductor solid crystal machine is less than expected, it will affect the growth opportunities of the company’s semiconductor solid crystal machine.
