On the evening of November 4, Huatian Technology's fixed increase results were released, of the total amount of 5.1 billion yuan raised, the National Integrated Circuit Industry Investment Phase II Co., Ltd. (hereinafter referred to as the National Grand Fund Phase II) was allocated 1.13 billion yuan, and after the completion of the issuance, the Second Phase of the National Grand Fund became the second largest shareholder of the company, with a shareholding ratio of 3.21%.
At the opening of the market the next morning, Huatian Technology's stock price rose sharply by 7.14%, hitting a new high in March.
According to public information, Huatian Technology was listed on the Shenzhen Stock Exchange in 2017, the company's headquarters is located in Tianshui, Gansu, the main business is the packaging and testing of integrated circuits, integrated circuit products are mainly divided into lead frames, substrates and wafer-level products, all of which are the mainstream technology of chip packaging and testing.
The so-called chip packaging test is to use a special shell to test the performance of the chip, and at the same time to seal and protect the prepared chip to achieve the purpose of storage and transportation, which is in the middle and lower reaches of the industrial chain.
Looking at the <b>world, although the global packaging and testing market has grown, the growth rate is small</b>, from 2011 to 2020, the global packaging and testing market size has increased from 45.5 billion US dollars to 59.4 billion US dollars, cagr is only 3.0%. The domestic packaging and testing market has developed rapidly in recent years, and the domestic packaging and testing market has increased from 15 billion US dollars to 38.1 billion US dollars from 2011 to 2020, cagr is 10.9%, and the share has also increased from 33% in 2011 to 64% in 2020. Especially since the second half of 2019, affected by Sino-US trade frictions, the semiconductor industry has improved its prosperity, and the packaging and testing industry has also strengthened, and the overseas epidemic after 2020 has caused a greater impact on chip manufacturing and packaging and testing production capacity in Europe and the United States, coupled with the recovery of demand in the second half of 2020, <b>China's packaging industry has maintained a high degree of prosperity, and domestic substitution has accelerated. </b>
(Changes in semiconductor packaging and testing market share, source: Shanghai Securities)
It is understood that Huatian Technology's market share in the packaging and testing industry ranks sixth in the world and the top three in China. <b>As a leader in the packaging and testing industry, the performance of Huatian Technology has also grown with the improvement of the industry's prosperity. </b>Since the second half of 2020, the company's production line began to run at full capacity, full of orders, the latest data show that in the first three quarters of this year, Huatian Technology achieved a net profit of 1.37 billion yuan, an increase of 145% year-on-year, has exceeded the net profit of 832 million yuan for the whole of last year.
At the same time, Huatian Technology's gross profit margin and attributable net profit margin increased significantly, the company's gross profit margin in the third quarter of this year increased by 4 percentage points to 25.56% compared with the 2020 annual report data, and the growth of net profit margin was more obvious, and the company's net profit margin in the third quarter of this year increased by 6 percentage points year-on-year to 14.32%, considering that in the short term, the supply and demand relationship of the sealing and testing industry is difficult to alleviate, and the company's profitability is expected to continue.
According to the complexity of the product process, the form of packaging, the packaging technology, and whether the materials used in the packaging product are at the forefront of the industry, the packaging technology is divided into traditional packaging and advanced packaging. It is worth noting that <b>the traditional package has the advantages of high cost performance, strong product versatility, low cost of use, and a wide range of application fields, and there is no clear substitution relationship with advanced packaging. </b>
It is understood that in the advanced packaging market, the largest application area of global advanced packaging is the mobile and consumer electronics market, accounting for nearly 90% of sales; and in the traditional packaging market, the amount of new energy vehicles and 5G base stations is the main force. According to Yole, the traditional packaging market will maintain a compound annual growth rate of 1.9% in 2019-2025, while the advanced packaging market cagr will be 6.6%. <b>In this round of market, the supply and demand tension of traditional packaging is the most prominent, and the short-term supply and demand situation is difficult to change, compared with advanced packaging, the prosperity trend of the traditional packaging industry is more prominent. </b>
(Source: Research Report)
<b>Huatian Technology's packaging technology is mainly traditional and advanced. </b>At present, the Tianshui base specializing in traditional packaging is the company's main source of profit, and the base construction time is less depreciation pressure earlier, contributing nearly 34% of the company's revenue and about 47% of the net profit in 2020.
Although traditional packaging technology is profitable, as Moore's Law slows down, advanced packaging is expected to become the core driving force for the expansion and share concentration of the packaging and testing industry. <b>Unfortunately, compared with the same industry, Huatian Technology's ability in advanced packaging is slightly insufficient. </b>
<b>The 5.1 billion yuan raised in this public offering is used to expand the scale of advanced packaging capacity. </b>According to the announcement, the funds raised by Huatian Technology in this non-public offering of shares are intended to be used for the scale expansion project of integrated circuit multi-chip packaging, the expansion project of high-density system-level integrated circuit packaging and testing, the industrialization project of tsv and fc integrated circuit packaging and testing, the industrialization project of storage and radio frequency integrated circuit packaging and testing, and the supplementary working capital.
In addition to Huatian Technology, on the evening of November 2, the semiconductor equipment leader North Huachuang (002371) released a report on the increase of the fixed increase, saying that the company raised a total of 8.5 billion yuan this time, of which the second phase of the large fund subscribed nearly 1.5 billion yuan.
In just 3 days, the second phase of the big fund invested 2.63 billion yuan. And in addition to these two companies, the big fund has also successively invested in many semiconductor-related manufacturers such as Zhongwei Company, Zhiquan Technology, Nanda Optoelectronics, Baiwei Storage, and Zhongwei Company.
The field of investment in the second phase of the National Fund is similar to the first phase, covering all aspects of the chip industry chain, at present, the second phase is more inclined to the manufacturing link than the first phase, and the funds are more targeted into the weak points of the industrial chain. Combined with the recent frequent reduction of the first phase of the national large fund, the state continues to be optimistic about the semiconductor industry, and the action of repositioning and stock exchange shows that the perspective of supporting the semiconductor industry is shifting from the downstream application end to the manufacturing end.