Reporter Li Yucheng, Intern Reporter Zhang Junbing
On September 29, Weiteo was successfully listed on GEM , and the company's stock price rose 14.87% on the same day. As the "hidden champion" in the microelectronic welding materials industry, the company's revenue has shown a gradual growth in recent years.
So, can the company achieve continuous growth in performance after its listing, and can small products control the wind and break the deadlock in the big market?
small products and large market
Vite-double main products are solder paste, solder wire and other microelectronic welding materials, as well as auxiliary welding materials such as flux , cleaning agents. The microelectronic welding materials produced by the company are one of the important basic materials in the electronic material industry and have the characteristics of "small products and large market".
's products are mainly used in the assembly and interconnection of electronic devices such as PCBA process, precision structural component connection, semiconductor packaging , and are ultimately widely used in consumer electronics, LED, communications, computers, industrial control, photovoltaics, automotive electronics and other industries.
Source: Weiteo Prospectus
Although there are many downstream industries of microelectronic welding materials, due to the overall late start of domestic production enterprises, the early domestic microelectronic welding materials market was almost completely occupied by foreign-funded enterprises. As of 2021, foreign companies still accounted for about 50% of the domestic market share.
From the overall domestic market, the overall scale of my country's microelectronics welding materials industry in 2020 was about 30 billion yuan. Based on the company's revenue of 591 million yuan in 2020, the company's current sales scale accounts for about 2% of the domestic microelectronics welding materials market share, and its main product solder paste accounts for about 7% of the domestic market. In terms of market growth rate, from 2015 to 2019, my country's electronic tin solder production increased from 128,000 tons to 150,000 tons, with an annual compound growth rate of 4.04%. Although the overall market size and pattern are relatively stable, the industry's growth rate has slowed down in recent years. However, through more than 20 years of deep cultivation in the industry, the company has also achieved good results in the industry. At present, the company has established cooperation with downstream customers such as Guanjie Technology, ZTE , Foxconn , Aohai Technology, and Haier Smart Home. From 2019 to 2021, the company ranked first in China in the production, sales and shipments of solder paste for three consecutive years; among them, the company's solder paste shipments in 2019 were among the top three in the world.
But in the future, we will continue to break through half of the country still occupied by foreign companies. In the opinion of Weiteou, it still takes time. A relevant person from the company told the Securities Daily reporter that compared with internationally renowned companies such as the United States and the Japanese Qianzhu, there are still certain gaps in my country's many microelectronic welding material companies in R&D capabilities, product systems, talent reserves and operation management.
But it is worth mentioning that the development trend of import substitution in recent years has been obvious. In order to prevent key technologies or materials from being subject to foreign suppliers and ensure the safety and stability of the supply chain, domestic technology companies have also begun to select and support domestic excellent microelectronic welding material suppliers, which has also created opportunities for domestic advantageous industries including Weiteu to gradually replace the market share of foreign-funded enterprises.
In terms of R&D technology, the field of microelectronic welding materials has the characteristics of fast technology updates and diversified product demands. If domestic companies cannot continue to maintain the stability of product quality and technological advancement in the future, they will also face greater market competition risks.
From 2019 to 2021, Weite's R&D expenses were RMB 20.7 million, RMB 20.04 million and RMB 26.07 million respectively; the R&D expense ratio was 3.99%, 3.39% and 3.02%, which was at the middle level of comparable companies in the same industry.
In order to make up for the shortcomings of insufficient R&D, one of the IPO fundraising projects of Weiteou, "Microelectronic Welding Materials R&D Center Construction Project", will rely on the company's "Guangdong Electronic Welding Materials Engineering Technology Research Center" platform to purchase high-end R&D testing equipment, attract high-end talents in the industry, meet the needs of upgrading downstream terminal products, and gradually realize the import substitution of high-end products.
Revenue has been increasing year by year
New Energy Wind Blowing
As the first stock in China's microelectronic welding materials, in the context of the relatively slowdown in the growth rate of the microelectronic welding materials industry, the company's revenue has actually shown a small step forward in recent years.Especially in 2021, the company's revenue has increased significantly. From 2018 to 2021, the company's revenue was RMB 467 million, RMB 518 million, RMB 591 million and RMB 863 million, respectively; the year-on-year growth rate from 2019 to 2021 was approximately 11%, 14% and 46% respectively.
Regarding the reason why the company's revenue growth rate exceeded the industry's growth rate in 2021, the company stated that thanks to the continued growth of the business scale of high-quality customers and the good results of the marketing strategy of large customers, the company's overall sales to the top 15 customers including Guanjie Technology reached 63.07% in 2021.
Source: Weiteyu Prospectus
Nowadays, in the general environment of rising raw materials, whether Weiteyu can successfully acquire new orders in the future maintain continuous revenue growth has become the focus of market attention. The above-mentioned company person told reporters that the future development of the three emerging industries, photovoltaics, 5G communications, and new energy vehicles, will bring opportunities to the company.
In the past three years, the company's revenue growth rates in the photovoltaic and 5G communication industries reached 102.56% and 76.78% respectively. The rapid growth of the photovoltaic and 5G communication industries will drive the rapid growth of demand for microelectronic welding materials.
In addition, the company has begun to supply water-based cleaning agents and other products to well-known new energy vehicle companies such as BYD and Great Wall Motors , and has successfully entered the field of new energy vehicle.
She Wenzhi, strategic investment director of Shenzhen Jiayi Asset Management Co., Ltd., told reporters that under the "dual carbon" goal, the photovoltaic industry has ushered in explosive growth, and microelectronic welding materials are the basic welding materials for products such as solar panels ; new technologies and new applications such as cloud computing , big data, artificial intelligence , and the Internet of Things are constantly emerging, and the large-scale promotion and commercialization of 5G network construction, as well as the degree of electronicization of automobiles, autonomous driving technology and Internet of vehicles are constantly developing, bringing market incremental and technological upgrade needs to the electronics industry, which can create a favorable market environment for the company's business expansion.
The above-mentioned company person told reporters that the company's main customers are currently stable in cooperation with sufficient orders. The company's revenue in the first half of this year was 584 million yuan, a year-on-year increase of 66.93%; the company expects revenue in the first three quarters of 2022 to be 833 million yuan to 872 million yuan, a year-on-year increase of 42.87% to 49.46%, and the company's operating performance will continue to maintain a growth trend.
(Edit Bai Baoyu)
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