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Stock Analysis & ValuationMacmic Science&Technology Co.,Ltd. (688711.SS)

Professional Stock Screener
Previous Close
$30.77
Sector Valuation Confidence Level
Low
Valuation methodValue, $Upside, %
Artificial intelligence (AI)28.70-7
Intrinsic value (DCF)14.96-51
Graham-Dodd Method2.98-90
Graham Formula0.19-99

Strategic Investment Analysis

Company Overview

Macmic Science & Technology Co., Ltd. is a specialized power semiconductor company founded in 2006 and headquartered in Taipei, Taiwan, with its shares listed on the Shanghai Stock Exchange STAR Market. The company focuses on the development, manufacturing, and sale of comprehensive power semiconductor solutions including MOSFET modules, fast recovery epitaxial diode chips and modules, IGBT discrete products and modules, rectifier diode modules, and thyristor modules. Operating in the critical semiconductor technology sector, Macmic's products serve diverse applications across inverter systems, welding equipment, SMPS, UPS, induction heating, renewable energy inverters for solar and wind power, transportation products, home appliances, electric vehicles, medical equipment, and motor drives. As a Taiwan-based company accessing China's capital markets, Macmic occupies a strategic position in the global semiconductor supply chain, leveraging regional manufacturing expertise while serving international markets. The company's focus on power semiconductors positions it at the forefront of energy efficiency technologies essential for electric vehicles, renewable energy infrastructure, and industrial automation—key growth areas in the global transition toward electrification and sustainable energy solutions.

Investment Summary

Macmic Science & Technology presents a mixed investment profile with significant sector exposure but concerning financial metrics. The company operates in the strategically important power semiconductor space with applications in high-growth areas like electric vehicles and renewable energy, supported by a substantial market capitalization of approximately 5.92 billion CNY. However, the investment case is tempered by negative net income of -14.47 million CNY and negative diluted EPS of -0.0682 despite generating 1.33 billion CNY in revenue. Positive aspects include reasonable operating cash flow of 122 million CNY and a dividend payment of 0.09 CNY per share, suggesting some financial stability. The company's beta of 1.083 indicates higher volatility than the market, which may appeal to risk-tolerant investors seeking semiconductor sector exposure. Key risks include the net loss position, significant total debt of 803.56 million CNY relative to cash reserves of 225.55 million CNY, and competitive pressures in the global semiconductor industry. Investors should monitor the company's ability to return to profitability and manage its debt load while capitalizing on growth in its target end markets.

Competitive Analysis

Macmic Science & Technology competes in the highly competitive global power semiconductor market, where it faces established international players with greater scale and technological resources. The company's competitive positioning is defined by its specialization in specific power semiconductor components rather than attempting to compete across the entire semiconductor value chain. Macmic's product portfolio focusing on MOSFET modules, IGBTs, and diode modules targets mid-range applications in industrial, automotive, and renewable energy sectors, potentially avoiding direct competition with premium-tier suppliers. The company's Taiwan-based operations provide advantages in semiconductor manufacturing expertise and supply chain integration within the Asia-Pacific region, while its Shanghai listing offers access to Chinese capital markets and domestic customer relationships. However, Macmic faces significant challenges against larger competitors with stronger R&D capabilities, broader product portfolios, and global distribution networks. The company's negative profitability in the latest reporting period suggests competitive pressures on pricing and margins, common in the semiconductor industry where scale advantages are significant. Macmic's ability to compete likely depends on maintaining technological relevance in specific application areas, controlling manufacturing costs, and developing customer relationships in growing markets like electric vehicles and renewable energy where specialized power semiconductor expertise is valued. The capital-intensive nature of semiconductor manufacturing and the cyclicality of the industry present ongoing challenges for mid-sized players like Macmic competing against well-funded multinational corporations.

Major Competitors

  • Jiangsu Jiejie Microelectronics Co., Ltd. (300373.SZ): Jiejie Microelectronics is a leading Chinese power semiconductor company specializing in MOSFETs and IGBTs, directly competing with Macmic in the domestic Chinese market. The company benefits from strong government support and growing domestic demand for power semiconductors. However, Jiejie faces challenges in technological advancement compared to international leaders and may have limited global market presence outside China.
  • Silan Microelectronics Co., Ltd. (603290.SS): Silan Microelectronics is a comprehensive semiconductor manufacturer with significant power semiconductor operations, offering a broader product portfolio than Macmic. The company has strong manufacturing capabilities and established customer relationships in China. Silan's weaknesses include intense domestic competition and potential technology gaps compared to international power semiconductor specialists, though it maintains scale advantages over smaller competitors like Macmic.
  • Infineon Technologies AG (Infineon.ETR): Infineon is a global leader in power semiconductors with superior technology, extensive R&D resources, and worldwide distribution networks. The company dominates high-performance segments like automotive IGBTs and has strong patent portfolios. While Infineon's scale and technology advantages are significant, the company faces challenges in cost-competitive market segments where specialized players like Macmic may compete on price for specific applications.
  • ON Semiconductor Corporation (ON.N): ON Semiconductor is a major global player in power management semiconductors with diverse product offerings and strong automotive sector presence. The company benefits from vertical integration and manufacturing scale. ON Semi's weaknesses include exposure to semiconductor industry cycles and intense competition in standard power components, creating opportunities for specialized competitors like Macmic in niche application areas.
  • STMicroelectronics N.V. (STM.PA): STMicroelectronics is a European semiconductor leader with strong power discrete and module businesses, particularly in automotive and industrial markets. The company has advanced manufacturing technology and global customer relationships. STM's challenges include high R&D costs and competition in mass-market segments, potentially allowing regional specialists like Macmic to compete in specific geographic or application niches with customized solutions.
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