Tian Deyu IPO: The upstream wafer is tight, and the performance may be difficult to maintain high growth

On August 2nd, the CSRC issued a news that after reviewing the review opinions of the Shanghai Stock Exchange and the registration application documents of the above company, they agreed to the above Shenzhen Tiandeyu Technology Co., Ltd. (hereinafter referred to as "Tiande Yu") Register for application.

The prospectus shows that Tian Deyu is planning to be listed on the Science and Technology Board of the Shanghai Stock Exchange. The company plans to invest 379 million yuan, which is mainly used for mobile smart terminal integrated chip industrialization upgrade projects and research and development and experimental center construction projects.

It is worth mentioning that by studying the prospectus disclosed by Tian Deyu, it is found that the number of suppliers of Tiandeyu is more concentrated. The unit price cannot continue to grow at a high speed. Under extreme circumstances, there may even be the risk of fell by 50%or even losses for the issuance of business profits that year.

In response to related issues, I found that the net was issued to Tian Deyu to interview the letter to request doubts, but as of press time, Tian Deyu did not give a reasonable explanation.

The top five suppliers and customers are highly concentrated

Public information shows that Tian Deyu is the R & D, design, and sales enterprise of integrated single -chip focusing on a mobile smart terminal. The company adopts Fabless business model to focus on the product development, design and sales links. Product production and packaging tests are completed by wafer production enterprises and packaging testing companies, respectively. The company currently has a smart mobile terminal display driver chip (DDIC, touch and display driver integrated chip (TDDI)), camera sound ring motor driver chip (VCM Driver IC), fast charge protocol chip (QC/PD IC), and electronic tags The four main products of the Driver Driver IC (ESL Driver IC) are widely used in mobile phones, tablets/smart speakers, smart wear, fast charge/mobile power, smart retail, smart office, smart medical and other fields.

According to the prospectus data, from 2019 to 2021, the company's operating income was 464 million yuan, 561 million yuan, and 1.16 billion yuan, respectively; the net profit attributable to the company's shareholders was 17.277 million yuan, 60.7457 million yuan, and 329 million yuan, respectively. It can be seen that during the reporting period, Tian Deyu's operating income and net profit attributable to their mothers have doubled significantly.

Source: prospectus

However, it should be noted that Tian Deyu is facing the risk of relatively high purchases of the top five suppliers. From 2019 to 2021, the company's procurement amount from the five major suppliers accounted for 73.50%, 81.88%, and 79.60%, respectively, which were more concentrated. If the cooperation between the company and the supplier changes or the operating conditions of the supplier will change in the future, the company may not be able to obtain supply in time, which will adversely affect the company's production and operation activities.

In this regard, Tian Deyu admits that suppliers are more concentrated during the reporting period. The company adopts FABLESS business model. The supplier mainly is a wafer plant and packaging testing plant. The industry concentration of the wafer plant is high. %, Shows that the packaging process of the driver IC is more complicated, and the number of packaging and testing plants that can provide related packaging services is small.

What matters to the snow is that the proportion of the top five customers in Tian Deyu also has a high risk. From 2019 to 2021, the company's sales revenue to the five major customers was 230 million yuan, 321 million yuan, and 806 million yuan, respectively, accounting for 49.58%, 57.26%, and 72.25%of the current operating income, which was higher year by year. If the company's main customers fluctuate due to factors such as market changes, policy adjustments, and their own operations, it will adversely affect the company's sales revenue.

Source: prospectus

Industry insiders pointed out that if the enterprise orders and customers are highly concentrated, the survival and development of the enterprise largely dependence. Once the company's cooperative relationship changes or the customer's operating conditions have changed significantly, the company's business business will be fatal to a fatal blow Essence

The upstream wafer supply tension performance is difficult to maintain high growth

In addition to relying on the top five suppliers and customers, because Tian Deyu is an integrated circuit design enterprise, and the test and packaging testing session is completed by the wafer manufacturing and packaging testing plant, under the influence of fluctuations in the supply and demand relationship of the semiconductor industry, The impact of the lack of upstream wafer manufacturing capacity.

Recently, SUMCO (Shenggao), the main supplier of silicon wafers in the semiconductor industry, publicly stated that its capacity in 2026 has been snapped up, which also indicates that the shortage of silicon wafers may continue. However, Tian Deyu also admits that the company has maintained the stability of the wafer supply to a certain extent through signing capacity reservation contracts with major wafer plants and expanding other wafer supply channels.

However, if the above -mentioned suppliers have emergencies similar to pivotal resistance, or due to factors such as the continuous demand for downstream market, the wafer supply may not meet the demand and will adversely affect the stability of the company's operating performance.

The prospectus shows that Tiandeyu's main business income mainly comes from displaying drive chips (including touch and display integrated chips). From 2019 to 2021, the income generated by these chips accounted for 78.67%, 80.21%, and 74.87%of the company's main business revenue, respectively.

Source: prospectus

In the field of display driver chips, leading companies are mainly distributed in Taiwan, South Korea, the United States and other regions, and some industry leading companies have produced cutting -edge products such as AMOLED DDIC and FTDI in the mass production mobile phone field. In the above -mentioned field, although the company has the layout, compared with the leading enterprise, there is a large gap in terms of product iteration speed and depth of layout. Industry insiders pointed out that if Tian Deyu cannot speed up product research and development and iteration in the future, there will be a continuous gap compared with industry leading companies, which may lead to a decline in the company's competitiveness, and market share and operating income will decline. But this means that the high growth of the company's performance will be difficult to maintain.

In addition, due to the epidemic in the first quarter of 2022, the demand for downstream consumer electronics market has slowed down. However, during the reporting period, the growth of related performance in the company not only benefited from the continuous research and development of the issuer's new products and achieved mass production, but also benefited from the positive impact of changes in the supply and demand of the industry.

With the continuous diversification of downstream customers, new display materials such as Micro-OLED are gradually commercialized, and customers are more pursuing thin and multi-functional electronic products such as mobile phones. In order to improve, if the company cannot develop new products or develop products in time cannot meet market demand, the level of operating income and profitability, product gross profit margin and unit price will not continue to maintain high -speed growth.

Tian Deyu admitted in the prospectus that if the market supply and demand relationship has undergone adverse changes in the future, it will also affect the company's operating income and profitability, product gross profit margin and unit price growth trend. Under extreme circumstances, there may be even 50%or even the operating profit of the year. Risk of loss.

In addition, from 2019 to 2021, the company's exchange profit or loss was -26.546 million yuan, 6.488 million yuan, and 27.461 million yuan, respectively. Exchange profit or loss. However, if the exchange rate of the RMB against the US dollar in the future will expand, it may lead to the exchange profit or loss of a large amount of the company, which will affect the company's financial status.

Source: prospectus

Analysis of industry insiders shows that with the advancement of the market -oriented reform of the RMB exchange rate at present, the elasticity of the RMB exchange rate has continued to increase, and the fluctuation of the RMB to the US dollar may be greater. As for the above issues, it is worth paying attention to investors. For Tian Deyu's development, it is found that the network will continue to pay attention.

(Reporter: Luo Xuefeng Finance Researcher: Liu Bei)

- END -