\u3000\u3000 Jcet Group Co.Ltd(600584) (600584)
Event: the company issued the announcement of annual performance increase in 2021. It is expected that the net profit attributable to shareholders of Listed Companies in 2021 will be 2.8 billion yuan to 3.080 billion yuan, with a year-on-year increase of 114.72% to 136.20%. After deducting non recurring profits and losses, the company is expected to realize a net profit attributable to shareholders of listed companies of RMB 2.35 billion to RMB 2.580 billion in 2021, with a year-on-year increase of 146.85% to 171.01%.
Comments: downstream applications occur one after another. The company focuses on key application fields such as 5g + aiot + automotive electronics, and the third generation semiconductor products have been shipped. Jcet Group Co.Ltd(600584) focusing on 5g, automotive electronics, aiot and other application fields, it has industry-leading semiconductor advanced packaging technology, mixed signal / RF integrated circuit testing and resource advantages in important fields such as 5g communication, high-performance computing, consumer, automobile and industry, realizes large-scale production, and can provide customized technical solutions for the market and customers. In the field of 5g communication application market, the company is jointly developing larger packaging products with customers, such as 2.5dfcbga products based on high-density fan out packaging technology, which improves the number and performance of integrated chips and lays a solid foundation for the further comprehensive development of high-density and high-performance packaging technology required by chiplet. In the field of automotive electronics, the company has established a special automotive electronics Bu to further layout the field of automotive electronics. The product types cover many automotive electronics application fields such as information entertainment, ADAS, sensors and electronic systems. In the field of aiot, the company has all-round solutions. The company’s China plant covers most general packaging test types and some high-end packaging types in the packaging industry; With sufficient production capacity, short delivery time and good quality (the yield can reach more than 99.9%), Jiangyin plant can meet customers’ one-stop service from middle road sealing and testing to system integration and testing. In addition, in terms of third-generation semiconductors, the company’s Chinese factory is currently engaged in IGBT packaging business, mainly for automotive electronics and industrial fields. At the same time, it has the packaging and testing capabilities of SiC and Gan third-generation semiconductors. At present, the third generation semiconductor products have been shipped to the photovoltaic and charging pile industries.
The proportion of advanced packaging market has gradually increased, contributing a major increment to the global packaging and testing market. Thanks to the expansion of chip applications in the world’s semiconductors in one or two years, automotive electronics and new driving forces will still be in a rapid growth cycle. Benefit from the growth of application end demand such as 5g communication network, artificial intelligence, automotive electronics and super large-scale data center. In the long run, the growing demand for consumer electronics and chip driven devices will drive the semiconductor market to continue to grow in the coming years. With the further development of electronic products towards miniaturization and multi-function, the chip size is becoming smaller and smaller, and there are more and more types of chips, in which the number of output and input pins is greatly increased, making the development of 3D packaging, sector packaging (fowlp / PLP), micro spacing wire bonding technology and system packaging (SIP) become one of the best choices to continue Moore’s law, The semiconductor packaging and testing industry is also transitioning from traditional packaging and testing to advanced packaging and testing technology, and the proportion of advanced packaging technology in the whole packaging market is gradually increasing. According to yole’s data, the global market scale of advanced packaging will increase from about US $27.6 billion in 2018 to about US $43.6 billion in 2024, and its share in the global packaging market will also increase from about 42.1% to about 49.7%. In 2018-2024, the CAGR of the global advanced packaging market will be about 8%, which is more significant than the overall packaging market (CAGR = 5%) and traditional packaging market in the same period, It will contribute major increment to the global sealed test market.
In the post Moore era, seize the opportunity of advanced packaging volume and lay out a full range of Heterogeneous Integrated xdfoi high-density fan-out packaging solutions, which can significantly reduce the system cost and reduce the package size at the same time. With the advent of the post Moore era, advanced packaging is expected to divert to the chip industry. In response to the needs of market development, Jcet Group Co.Ltd(600584) launched xdfoi ™ Multidimensional advanced packaging technology, which is a high-density, multi fan out packaging and high-density heterogeneous integration solution for chip (small chip). It uses the concept of collaborative design to realize the integration and testing of finished chip products, covering 2D, 2.5D and 3D integration technologies, and can provide customers with from conventional density to extremely high density, One stop service from very small size to very large size. In terms of design, this technology can realize 3-4 layers of high-density wiring, and the minimum line width / line distance can reach 2 μ m。 In addition, the very narrow pitch bump interconnection technology used by xdfoi technology can also realize 44mm × 44mm package size, and supports the integration of multiple chips, high bandwidth memory and passive components. These advantages can provide high cost performance, high integration, high-density interconnection and high reliability solutions for chip heterogeneous integration.
It has strong engineering R & D strength and diversified high-tech patents to meet the needs of diversified terminal markets. The company has a wealth of diversified patents, covering medium and high-end sealing and testing fields. From January to June 2021, the company obtained 56 patents and applied for 75 new patents. As of June 2021, the company has 3247 patents, including 2434 invention patents (1479 patents obtained in the United States). At the same time, relying on its rich technology accumulation and industry-leading R & D capability in the field of packaging and testing, the company will give full play to the advantages of global advanced manufacturing and technical resources, continue to strengthen technological innovation, improve advanced engineering and technical force, and accelerate the construction of China’s R & D center.
Investment suggestion: the company has strong customer order demand and effective cost operation control. The net profit of the company in 2021 / 2022 / 2023 is expected to be RMB 2.87/32.8/3.86 billion, maintaining the “buy” rating of the company.
Risk warning: the performance forecast is the preliminary accounting data, which is subject to the annual report data. The sales volume of downstream products is less than expected, the capacity construction is less than expected, and the promotion of 5g technology is less than expected
