USC(SH:688403)2024-12-20 09:42Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage in this regard [17]. Core Insights - The company focuses on high-value segments within the DDI packaging industry, with a core business in gold bumping and comprehensive wafer testing and packaging services [17]. - The company has established two major production bases in Jiangsu and Anhui, with significant production capacity for both 8-inch and 12-inch wafers [17][76]. - The report anticipates revenue growth from 2024 to 2026, with projected revenues of 1.496 billion, 1.721 billion, and 1.951 billion yuan, reflecting growth rates of 21%, 15%, and 13% respectively [3]. - The company has a high customer concentration, with its top two clients accounting for over half of its revenue [17][74]. Company Overview - The company is a pioneer in the DDI packaging industry in mainland China, specializing in gold bumping and providing a full range of packaging and testing services [11][17]. - The company has been recognized as the third-largest globally in DDI packaging shipments and the largest in mainland China as of 2020 [17][53]. Financial Analysis - The company’s revenue growth is primarily driven by rapid capacity expansion, with current annual capacities of approximately 396,000 8-inch and 390,100 12-inch wafers [58][91]. - The report indicates that the company’s gross margin and net profit are influenced by the cost structure, particularly raw material prices and depreciation [58]. Market Expectations - The DDI industry is expected to see increased domestic production and a shift in the supply chain, driven by the rise of the display panel industry in mainland China [68][69]. - The report highlights that the domestic DDI market is becoming increasingly competitive, with local manufacturers gaining market share [69][82]. Revenue Projections - The report forecasts revenue growth rates for various segments, including Gold Bumping, CP, COG, and COF, with expected growth rates of 18%, 31%, and 30% for the respective years [20][78].