Another power semiconductor manufacturer went public, with its share price rising by more than 208% and its market value exceeding 8.3 billion yuan.
Macro Micro Technology’s net profit surged 189% in 2020, with Infineon becoming the largest supplier.
Xinxi reported on September 1 that today, domestic power semiconductor manufacturer Jiangsu Acer Micro Technology Co., Ltd. (hereinafter referred to as "Acer Micro Technology", stock code: 688711) was successfully listed on the Science and Technology Innovation Board. MacroMicro Technology has also become another power semiconductor company that has successfully landed on the Science and Technology Innovation Board after China Resources Micro and Galaxy Micro.
The issue price of Macro Micro Technology was 27.51 yuan/share, and the opening price was 78 yuan/share, an increase of 183%. As of the time of writing of the core article, the latest stock price of Macro Micro Technology is 85 yuan per share, with a stock price increase of 208%, and a total market value of 8.3 billion yuan.
Macro Micro Technology was founded in 2006 by Jin Shitong, Century Dongxu and Zhao Shanqi, with a registered capital of 20 million yuan. Its main business of Macro Micro Technology is power semiconductor chips, single tubes, modules and power modules, mainly IGBT and FRED.
According to calculations based on data from market research institution Yole, during the reporting period, the sales volume of Acer Micro Technology's IGBT series products accounted for 1.43%, 1.47% and 1.81% of the total domestic market demand respectively.
Hongwei Technology's products are mainly used in three industries, namely industrial control and power supply industry, new energy industry, frequency conversion white home appliances and other industries. Among them, the industrial control and power supply industry mainly includes the frequency converter industry, motor energy-saving industry, etc.; the new energy industry includes new energy bus air-conditioning systems, new energy vehicle electronic control systems, new energy vehicle charging piles, smart grid industry, and clean energy such as wind power and photovoltaics.
As the problem of core shortages fermented, some power semiconductor companies such as ON Semiconductor, BYD Semiconductor, and Nexperia acquired by Wingtech Technology announced price increases. With the current outbreak of the epidemic in Southeast Asia, automotive power semiconductors such as IGBT have also been affected to a certain extent.
However, compared with automotive power semiconductors, Acer Micro Technology's main source of income is the industrial control and power supply industry; its supplier Infineon has not increased chip supply prices, keeping the prices of Acer Micro Technology products stable.
In recent years, Macromicro Technology has established relatively stable supporting cooperative relationships with industry leaders or well-known corporate customers such as Delta Group, Inovance Technology, Jasic Technology, Aotai Group, Suzhou Goodtech, Shenghong Co., Ltd., Inkerui, and Costar. From 2018 to 2020, Macro Micro Technology’s total revenue was 262 million yuan, 260 million yuan and 332 million yuan respectively.
In this IPO, Macro Micro Technology plans to raise 557.5 million yuan, which will be used for three projects: "new power semiconductor device industrial base", "R&D center construction" and "repayment of bank loans and supplement of working capital". It plans to publicly issue 24.62 million shares.
▲Macro Micro Technology Fundraising Project Plan
Zhao Shanqi, the founder of Macro Micro Technology, directly holds 23.7236% of the shares of Macro Micro Technology and is the controlling shareholder and actual controller of Macro Micro Technology.
▲Hongwei Technology’s equity structure
Benefits of this article: The complete version of Macro Micro Technology’s prospectus can be obtained by replying to the keyword [Core East and West 173] in the public account chat column.
Net profit surges 189% in 2020
Module business is the main source of income
The prospectus shows that Macro Micro Technology’s revenue in each period from 2018 to 2020 was 262 million yuan, 260 million yuan and 332 million yuan respectively. The larger revenue growth of Macro Micro Technology in 2020 also drove its net profit to soar.
In 2020, Macro Micro Technology's main business revenue increased by 27.56% year-on-year, with a rapid growth rate. This was mainly due to factors such as the increase in downstream market demand in 2020, the impact of the COVID-19 epidemic on the output of some manufacturers, and the trend of domestic substitution.
In terms of profits, Macro Micro Technology’s net profits in 2018, 2019 and 2020 were 7.36 million yuan, 9.18 million yuan and 26.54 million yuan respectively.
▲Hongwei Technology’s revenue and net profit changes from 2018 to 2020
If divided by product type, Acer Micro Technology's main business income can be divided into five categories: modules, single tubes, chips, power modules and entrusted processing services.
Among them, chips and single tubes can be divided into three types: IGBT, FRED, and MOSFET. Modules are power semiconductor modules including customized modules, including IGBT, FRED, MOSFET, rectifier diodes, thyristors, customized modules, etc. Acer Micro Technology's entrusted processing services mainly include silicon wafer thinning and backside metallization.
In 2020, module revenue accounted for 75.64% of Hongwei Technology's total revenue, with a sales amount of 249 million yuan, making it the main source of income for Hongwei Technology.
▲Hong Kong Technology’s revenue changes by business in 2020
Delta Group is the largest customer
The largest supplier Infineon has a competitive relationship
In terms of customers, Delta Group and Inovance Technology are both leading companies in my country's industrial control field. As the domestic industrial control market demand continues to increase, the sales amount of Acer Micro Technology, Delta Group and Suzhou Huichuan continues to expand.
During the reporting period, Delta Group and Inovance Technology have been the top five suppliers of Acer Micro Technology, and Delta Group has been Acer Micro Technology's largest customer.
At the same time, due to the impact of changes in the national new energy bus subsidy policy, the company's downstream customers of the power module business, such as automotive air-conditioning customers Songzhi Co., Ltd. and Guangzhou Jingyi Automotive Air-Conditioning Co., Ltd., have experienced a decline in market demand and are no longer among the top five customers of Macro Micro Technology.
Chengdu Hongwei Technology Co., Ltd. is the distributor of Hongwei Technology, and the two parties are not related. Since the products of the "Hongwei" trade name have high visibility and brand influence in the industry, Chengdu Hongwei Technology Co., Ltd.'s use of this trade name will help promote its product promotion and services, and have a positive impact on the production and operation of Hongwei Technology.
▲Acer Micro Technology’s top five customers from 2018 to 2020
In terms of procurement, because Acer Technology is a Fabless (fabless) model, its main raw materials are outsourced chips, self-developed chips, copper base plates, silicon wafers, DBC substrates, power converter components, etc.
Acer Micro Technology's main external chip supplier is Infineon. Since 2018, Infineon has long been Acer Micro Technology's largest supplier. The prospectus shows that the customized modules of Delta Group, the largest customer of Macro Micro Technology, are designated to use Infineon chips, which carries a certain risk of supply interruption.
During the reporting period, the sales proportion of self-developed chip products in Acer Micro Technology's IGBT series products accounted for 32.36%, 37.14%, and 53.69% respectively, and the proportion continued to increase. The amount of imported chips purchased from Infineon also decreased from 21.01% in 2018 to 16.71% in 2020.
Since Infineon is also a competitor of Acer Micro Technology in the same industry, this supply and demand relationship also puts Acer Micro Technology under certain risks.
As of the signing date of the prospectus, the chip procurement business between Acer and Infineon was being performed normally, and no supply interruptions had occurred. According to the supply agreement signed by Acer Micro Technology and Infineon, the agreement will take effect from the date of signature by the authorized representatives of both parties, and will be valid indefinitely thereafter unless terminated by either party with 6 months' written notice in advance.
Acer Micro Technology's IGBT chips are mainly manufactured by Huahong Grace and Newport Wafer Fab Limited. Acer Micro Technology is only responsible for providing IGBT chip design solutions. Acer Micro Technology's FRED chips are mainly manufactured by Huarong Huajing, and Acer Micro Technology is responsible for providing chip design solutions and silicon wafers.
At present, Newport Wafer Fab Limited has been acquired by Nexperia Semiconductor, a subsidiary of Wingtech Technology, and all transaction procedures have been completed.
▲Acer Micro Technology’s top five suppliers from 2018 to 2020
Nearly 25 million yuan will be invested in R&D in 2020
Chip R&D Director previously worked at ON Semiconductor and Infineon
From the perspective of the entire market, Acer Micro Technology’s foreign competitors include Infineon, Mitsubishi Electric Co., Ltd., Fuji Electric Co., Ltd., Semikron, etc., while domestic power semiconductor manufacturers include Star Semiconductor, Silan Micro, Yangjie Technology, China Microelectronics, and TSMC.
Manufacturers such as Infineon, Mitsubishi, Fuji, and Semikron account for nearly 70% of the global market share. Macro and Micro Technologies have certain gaps in technology, process accumulation, product line richness, corporate scale, brand awareness, etc.
Compared with local manufacturers, Acer Micro Technology has certain advantages in the product chain. At present, most domestic power semiconductor companies focus on back-end packaging and testing. They purchase chips and sell finished products to the market after packaging. There are few companies that can independently develop IGBT and FRED chips. According to the prospectus, Acer Micro Technology integrates chip, module design, module packaging and testing, and has large-scale production capabilities for IGBT and FRED. In addition, Acer Micro Technology's products include IGBT, FRED chips, single tubes and modules, rectifier diodes, thyristors and other module products. The product structure is relatively rich and can provide a variety of solutions.
In terms of gross profit margin, compared with domestic listed manufacturers in the same industry, Macro Microelectronics' gross profit margin is only higher than that of Huawei Electronics and Silan Microelectronics.
▲Comparison of gross profit margin and industry status between Macro Micro Technology and listed companies in the same industry
In 2020, Acer Micro Technology's R&D investment reached 24.5596 million yuan, which is higher than Taiji but lower than other competitors in the same industry. The number of R&D personnel of Macromicro Technology is 85, accounting for 19.91% of the total number of employees.
As of December 31, 2020, Acer Micro Technology has a total of 95 authorized patents, including 35 invention patents.
▲Comparison of R&D investment, R&D personnel, and patents between Hongwei Technology and listed companies in the same industry
At present, there are 6 core technical staff of Macro Micro Technology, namely Zhao Shanqi, chairman and general manager of Macro Micro Technology, Liu Lifeng, director and deputy general manager, Wang Xiaobao, deputy general manager, Yu Yichang, chip R&D director, Qi Lina, supervisor and chip R&D manager, and Ma Changsheng, module R&D director.
Specifically, Zhao Shanqi graduated from Jilin University with a major in semiconductors. He is the recipient of the "Special Allowance for Experts with Outstanding Contributions of the State Council". He has won 1 National Invention Award, 1 ministerial and provincial science and technology award, published more than 30 academic papers, and published 2 monographs.
▲Zhao Shanqi, Chairman and General Manager of Hongwei Technology
Wang Xiaobao graduated from Lanzhou University majoring in semiconductor physics and served as a member of the National Semiconductor Device Standardization Technical Committee. Currently, Wang Xiaobao is organizing the formulation of 5 industry standards as the leader of the drafting team. He has won 2 third-class scientific and technological progress awards from the Ministry of Machinery (the predecessor of the Ministry of Industry and Information Technology) and published more than 20 papers.
Yu Yichang graduated from Nanyang Technological University in Singapore and has more than 13 years of working experience in well-known domestic and foreign semiconductor companies. He has served as development manager of ON Semiconductor and technical manager of Infineon Technology Department. At Acer Micro Technology, Yu Yichang presided over the R&D and design of domestic IGBT, FRED, and MOS devices.
▲CORE TECHNICAL PERSONNEL OF ACROSS TECHNOLOGY
Chairman and General Manager Zhao Shanqi
As the controlling shareholder and actual controller
Currently, as Zhao Shanqi serves as the chairman and general manager of Macromicron Technology, he has nominated and elected four non-independent directors. He has an important influence on the company's operation and management and can actually control or decide major business strategies. Therefore, Zhao Shanqi is the controlling shareholder and actual controller of Macro Micro Technology.
Before this issuance, Zhao Shanqi held 23.72% of the equity of Macro Micro Technology. After the issuance is completed, Zhao Shanqi's shareholding ratio will drop to approximately 17.79%.
In addition, shareholders holding more than 5% of the shares before the issuance include Shenzhen Ivy, Huatai Strategy, Huiyou Chuangjia, Jiuzhou Venture Capital, as well as individual shareholders Li Fuhua, Kang Lu, and Ding Ziwen.
▲List of the top ten shareholders of Macro Micro Technology
Conclusion: Macro and Micro Technology’s listing accelerates domestic substitution
Infineon is the largest supplier and there are risks
Acer Micro Technology is one of the few domestic companies that can integrate chips, module design, module packaging and testing, and has large-scale production capabilities for IGBT and FRED. Its listing is conducive to the domestic replacement process of current power semiconductors. Changes in its stock price also reflect the current market's optimism for power semiconductors.
But at the same time, Macro Micro Technology has deficiencies in technology research and development investment, product gross profit margin, etc., and is in the middle and lower position compared with listed companies in the same industry. At the same time, Infineon, as an industry giant, is both a competitor and supplier of Acer Technology. This situation may limit the future development of Macro and Micro Technology.
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