A: Basic Information of the Company
Full Name of the Company: Will Semiconductor Co.,Ltd.Shanghai
Stock Code: 603501.SH
Stock Abbreviation: Will Semiconductor
Region: Shanghai
Industry: Semiconductor Discrete Devices
Establishment Date: 2007
Issue Price: [Not Provided]
Founder: Yu Renrong
Company Website: http://www.omnivision-group.com
Registered Address of the Company: Shanghai Pudong New Area, No. 88 Shangke Road
Business Operations: Research and development design of semiconductor discrete devices and power management ICs, as well as distribution business of passive components (including resistors, capacitors, inductors, etc.), structural devices, discrete devices, and ICs.
Company Profile: Will Semiconductor Co.,Ltd.Shanghai is a leading company in the field of semiconductor discrete devices. The company's main business includes the research and development design of semiconductor discrete devices and power management ICs, as well as the distribution of passive components, structural devices, discrete devices, and ICs. These products are widely used in mobile communications, automotive electronics, security, network communications, household appliances, and other fields. The company has accumulated significant technical advantages in CMOS image sensor circuit design, packaging, digital image processing, and supporting software through years of independent research and development and technological evolution.
B: Value Investment Analysis
Key Financial Indicators:
For the half-year of 2024, the company achieved a revenue of 12.091 billion yuan, a significant increase of 36.50% year-on-year. The net profit attributable to the company was 1.361 billion yuan, showing a substantial increase of 8.21 times year-on-year.
R&D Expenses: As a technology-driven company, Will Semiconductor's R&D expenses have nearly doubled from 1.282 billion yuan in 2019 to 2.496 billion yuan in 2022, with an 18% year-on-year increase in 2022 despite the challenging external environment, maintaining a high R&D expense ratio of 12%.
Company Investment Value:
Will Semiconductor is the world's third-largest and China's largest CMOS image sensor chip design company. According to Trendforce's data, in the first quarter of 2023, Will Semiconductor became one of the top ten Fabless semiconductor companies globally, ranking ninth and being the only Chinese mainland company on the list.
The company adheres to a "3+N" product layout strategy, with three major business units at the core, continuously expanding and improving product combinations horizontally to provide system-level solutions, enhancing the company's market competitiveness and investment value.
Company Growth Potential:
Through continuous independent research and development and acquisitions, such as the acquisition of Beijing OmniVision, Will Semiconductor successfully entered the CMOS image sensor track, achieving leapfrog development. The company has a strong growth potential in its three major business systems: image sensor solutions, touch and display solutions, and analog solutions.
The company holds a significant position in the automotive CMOS image sensor market, with a market share of 30% in 2022, ranking second in the world, and together with ON Semiconductor, they account for more than 70% of the global market, providing new momentum for the company's continued growth in future years.
Industry Support Policies:
The semiconductor industry, where Will Semiconductor operates, is a high-tech industry strongly supported by the state. A series of policies have been introduced to support the development of the semiconductor industry, including tax incentives, financial support, and R&D support, providing a favorable external environment for the company's development.
International Policy Risks:
The semiconductor industry is a global industry and is significantly affected by international trade policies. In recent years, the rise of trade protectionism has brought certain uncertainties to international cooperation and technological exchanges in the semiconductor industry. Will Semiconductor needs to pay close attention to changes in international policies and adjust its strategic layout flexibly to cope with potential risks.
A.Top Investment Review:
As a leading company in the domestic semiconductor industry, Will Semiconductor has successfully constructed three major business systems through continuous independent research and development and acquisitions, forming a strong market competitiveness. The company has a significant technological advantage in the field of CMOS image sensors, and its products are widely used in consumer electronics and industrial application fields, with broad market prospects. At the same time, the company actively responds to national policies, increases R&D investment, and continuously improves its technological innovation capabilities, providing a solid foundation for the company's sustained growth. Despite the uncertainties of international trade policies, the company is expected to maintain a robust growth momentum through flexible strategic adjustments and market layout, making it a company with high investment value.