China's Securities Watchdog Greenlights MEMSensing's Star Market IPO
The sensor device producer's revenue grew by over 150% in 2017-2019.
Founded in 2007, MEMSensing provides three main kinds of products, including MEMS microphones, MEMS pressure sensors and MEMS inertia sensors for consumer electronics, industrial control, medical electronics and automotive.
The company has completed the basic research and development of chip design, manufacturing, packaging and testing, and have injected the technology into domestic firms. For instance, SMIC (688981:SH, 00981:HKEX) is their main wafer provider and Huatian (002185:SZ) is responsible for the packaging.
According to its newest prospectus, from 2017 to 2019, MEMS microphone sales accounted for 88.63%, 91.22% and 90.07% of total revenues, which means that the slowdown in demand for microphones will adversely affect the company's revenues and profitability.
In addition, there are some risks that should be considered: 1) disputes over patent ownership with GoerTek (002241:SZ); 2) risk of decline in MEMS microphone sales in smart home applications.