\u3000\u3000 Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) (688661)
Main points:
In the past ten years, the microelectronic parts industry has witnessed rapid growth in revenue and net profit
Founded in Suzhou New Area in 2012, the company is a national high-tech enterprise specializing in the R & D and manufacturing of precision parts and advanced micro forming technology. The products are widely used in medical devices, MEMS microphones, micro sensors, smart phones and microelectronic devices, and have established long-term and stable cooperative relations with downstream high-quality customers such as apple, Huawei, Samsung, NVIDIA and Infineon. The ownership structure of the company is relatively centralized, and the core management team is stable. Since entering the semiconductor chip test probe business in 2017, the revenue and net profit have increased rapidly.
MEMS precision parts faucet, semiconductor chip test probe set sail quickly
Benefiting from the explosion of demand for downstream applications such as TWS headphones and smart speakers, the company’s MEMS parts business has grown rapidly. According to Yolo’s forecast data, the MEMS market scale will be US $12.1 billion in 2020, will increase to US $18.2 billion in 2026, and the CAGR will reach 7.2% in six years, opening up the room for the company’s performance growth. With the steady expansion of the scale of the semiconductor sealing and testing market and the promotion of the localization process, there is a huge replacement space for Chinese probe enterprises. The company’s existing probe business is bound to the leader of downstream customers and is widely recognized in the industry. The semiconductor probe business is expected to drive the company’s performance in the future.
Leverage raised capital to expand market share and overweight semiconductor chip test probe
In order to improve the company’s production capacity and meet the market demand, the funds raised by the company’s IPO will be invested in the production expansion project of micro electromechanical (MEMS) precision electronic parts, the production expansion project of semiconductor chip test probe and the construction project of R & D center. On November 20 last year, the company decided to raise no more than 700 million yuan for MEMS wafer level probe and substrate level probe projects, continue to code semiconductor chip test probes, expand high-end product categories and fill the gap in China.
Investment advice
We estimate that the net profit attributable to the parent company from 2021 to 2023 will be 112, 165 and 242 million yuan, and the corresponding P / E ratio will be 56.83, 38.51 and 26.33 times. The company will be given a “buy” rating for the first time.
Risk tips
The downstream demand growth of MEMS was lower than expected, and the expansion of semiconductor probe business was lower than expected.
