\u3000\u3000 Sai Microelectronics Inc(300456) (300456)
Strategic transformation focuses on semiconductor business, and endogenous extension continues to expand
Since its establishment, the company has successfully extended its business to the upstream of the industrial chain through endogenous development and epitaxial M & A. at present, MEMS chip process development and wafer manufacturing have become the company's main core business. The company issued an announcement on the acquisition of German production line assets by the Swedish subsidiary in December 2021, further expanding the business scope of the company's core main business of sensor and chip process manufacturing to the field of automotive electronics, rapidly improving the overseas production capacity compatible with MEMS and CMOS chip integrated process manufacturing, and improving the company's comprehensive competitive strength in the world.
MEMS manufacturing technology is the world's leading, and the ramp up of production capacity promotes the rise of performance
MEMS downstream applications mainly include consumer electronics, industrial control, communication, automobile, medical and other fields. Because MEMS devices have the advantages of small inertia, high resonant frequency and short response time, their application is also continuously improving. According to yole's data, the global MEMS market will reach US $12.1 billion in 2020 and is expected to grow to US $18.2 billion in 2026, with a CAGR of 7.2%. The company is a leading MEMS OEM enterprise in the world. Its subsidiary silex in Sweden continues to expand its production capacity. Fab1 & fab2 continue to improve the overall production capacity of the production line by purchasing key equipment. At the same time, the company's holding subsidiary celex Beijing "8-inch MEMS international OEM line" (Beijing fab3) has officially started mass production in phase I (10000 pieces / month) and construction in phase II (20000 pieces / month). In addition, SELEX Beijing also signed the strategic cooperation framework agreement with egmins and Wuhan Minsheng in August 2021, and decided to carry out long-term strategic cooperation in the field of 8-inch wafer foundry of "RF filter chip", so as to jointly build customized special production capacity that can fully meet the OEM manufacturing needs of RF filter chip products. With the wide expansion and application of MEMS terminal equipment and the growing demand for related products, the company's revenue is expected to continue to increase with the ramp up of production capacity.
Actively expand Gan business and have made a number of breakthroughs
In terms of Gan epitaxial materials and chips, the company has begun to sign batch sales contracts and deliver them successively, promoting the research and development and launching power chip products and application solutions of different specifications. In addition, the company continued to layout the Gan industrial chain, and its subsidiary Juneng Chuangxin built a GaN chip manufacturing line by means of equity participation, actively promoting the accumulation of technology, process and products, so as to meet the demand of the next generation of power and microwave electronic chips for GaN epitaxial materials and Gan chips. Investment suggestion: we expect that the company will realize a net profit attributable to the parent company of 154 / 385 / 662 million yuan in 21-23 years. Considering that the company is in the rapid growth period of capacity release and referring to the 22-year PE average of comparable companies, we will give the company 60 times PE, the corresponding market value is 23.1 billion yuan, the corresponding price is 31.64 yuan / share, and give a buy rating for the first coverage.
Risk warning: downstream application demand is less than expected risk, foreign investment is less than expected risk, R & D progress is less than expected risk, and business scale expansion brings operation and management risk
