\u3000\u3000 Shenzhen Xinyichang Technology Co.Ltd(688383) (688383)
Event: on January 17, the company issued the announcement of performance increase in 2021. The net profit attributable to the owner of the parent company in 2021 is expected to be 22 million yuan - 235 million yuan, with a year-on-year increase of 104.61% - 118.56%; The net profit after deducting non recurring profits and losses is expected to be RMB 210-225 million, with a year-on-year increase of 104.91% - 119.55%.
The frequent emergence of new miniled products drives the demand for miniled solid crystal machine equipment: at present, downstream manufacturers such as Samsung, LG, TCL, Xiaomi and Huawei have successively launched miniled TVs, displays and other products. Apple released the iPad pro with miniled backlight in April 2021. The prosperity of the miniled industry continues to rise. In the future, the company is expected to benefit from the incremental demand for mini led solid crystal machine. The performance pre increase report disclosed that the performance growth was mainly due to the company's focus on the development main line of intelligent manufacturing equipment industry, continued to maintain price advantages and technology in the industry, and the revenue of solid crystal machine increased. According to the prospectus, the company's main customers of miniled in China are: Hongli, Ruifeng, Zhouming, Jufei, San'an, BOE, etc. the customer penetration rate is high. The company's equipment adopts grab solid crystal, which has the advantages of high precision and 99.999% high yield. The repair is reduced, which can better control the cost. The technical route is relatively mature and the market recognition is high.
Increase investment in new product R & D and the company's multi category layout: according to the company's third quarter report, during the reporting period, the company's R & D expenses were RMB 20.2145 million, a year-on-year increase of 80.68%, and the company's R & D expenses in the first three quarters totaled RMB 47.9716 million, a year-on-year increase of 45.81%. In recent years, the company's R & D investment in new products and applications such as small spacing display, miniled, microled and intelligent manufacturing equipment in the field of supercapacitor has continued to increase, laying a solid foundation for the future market development of products. The semi annual report of the company disclosed that as of June 30, 2021, the company had obtained 181 patents and 82 software copyrights.
Benefiting from the prosperity of the semiconductor industry, semiconductor solid crystal equipment has brought new impetus to performance growth: semiconductor packaging has emerged in the post Moore era, the scale of China's packaging and testing industry has expanded, and the company's semiconductor equipment is expected to become a new pole of business growth. According to the statistics of China Semiconductor Industry Association, in 2020, the scale of integrated circuit packaging in China was 250.95 billion yuan, a year-on-year increase of 6.8%. Yoledevelopment estimates that the global solid crystal machine market will be about US $1.389 billion in 2024. With the decline in the proportion of LED Solid Crystal machines, the scale of semiconductor solid crystal machine market will gradually expand. It is expected that the semiconductor solid crystal machine market will reach US $1.083 billion by 2024. With years of technology accumulation in LED solid crystal machine, the company successfully launched solid crystal machine applied in power semiconductor. In the future, with the continuous expansion of downstream packaging and testing plants and domestic substitution demand, the company's semiconductor solid crystal machine business is expected to become a new growth point.
Investment suggestion: we estimate that the company's revenue from 2021 to 2023 will be 1.137 billion yuan, 1.528 billion yuan and 2.023 billion yuan respectively, and the net profit attributable to the parent company will be 231 million yuan, 306 million yuan and 438 million yuan respectively, maintaining the "Buy-A" investment rating.
Risk warning: the prosperity of the industry is lower than the expected risk; Risk of new product market expansion; Technology update iteration risk.