Comment on Broadex Technologies Co.Ltd(300548) event: join hands with Changfei and unite with the strong

\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 48 Broadex Technologies Co.Ltd(300548) )

Event overview: on April 7, 2022, Broadex Technologies Co.Ltd(300548) and Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) issued announcements respectively, and Broadex Technologies Co.Ltd(300548) shareholders and Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) shareholders signed equity transfer agreement and voting right entrustment agreement, and Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) will obtain 25.43% of the total voting rights of Broadex Technologies Co.Ltd(300548) and become the controlling shareholder and actual controller of the latter.

Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) will become the controlling shareholder and actual controller of the company

The controlling shareholder and actual controller of the company, Zhuwei (Zhu Wei) and his spouse, wangxiaohong (Wang Xiaohong), Ding Yong and his spouse, jiangrongzhi (Jiang Rongzhi), who hold more than 5% of the company’s shares, and Tdg Holding Co.Ltd(600330) intend to transfer a total of 22.12 million shares of the company held by them (accounting for 12.72% of the total share capital of the company before the completion of the transaction) to Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) . At the same time, Zhuwei (Zhu Wei) and Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) signed the voting right entrustment agreement. After all the above matters are completed, Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) can control 25.43% of the voting rights of the listed company, and Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) will become the controlling shareholder and actual controller of the company.

This acquisition is conducive to the integration of resources and strong alliance between the two sides

Broadex Technologies Co.Ltd(300548) is the world’s leading supplier of integrated optoelectronic devices. It has established a packaging technology platform for planar optical waveguide (PLC), micro optical electromechanical (MEMS), silicon photons and high-speed active modules, providing high-quality optical signal power and wavelength management devices and high-speed optical transceiver modules for optical fiber communication networks and data centers around the world. According to the company’s annual report, the company’s planar optical waveguide (PLC) optical splitter, dense wavelength division multiplexing (DWDM) devices and 10gpon optical modules occupy a leading market share in the world.

Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) is the world’s leading provider of optical fiber preforms, optical fibers, optical cables and integrated solutions. It mainly produces and sells various standard specifications of optical fiber preforms, optical fibers and optical cables, various optical modules, special optical fibers, active optical cables, submarine cables, RF coaxial cables, accessories and other products based on customer needs. The company has complete integrated systems, engineering design services and solutions, It provides high-quality products and services to more than 70 countries and regions around the world.

This transaction will introduce strategic shareholders and new actual controllers for Broadex Technologies Co.Ltd(300548) and we believe that it is conducive to the integration of resources, the combination of strength and strength, and the expansion and strengthening of the main business of Bo Chuang. After the completion of the transaction, Broadex Technologies Co.Ltd(300548) existing main business and development strategy will remain unchanged, and the internal organizational structure and core team will remain stable; Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) will give full play to the synergy advantages of the industrial chain, vigorously support Broadex Technologies Co.Ltd(300548) to expand business and continue to work closely with customers, suppliers and strategic partners.

It is estimated that the net profit of the company invested in the central industry chain is 1.4-2.2 billion times, which is 3.7-2.2 times higher than that of the company invested in the central industry chain for 1.7-2.1 billion years, respectively. Maintain a “recommended” rating.

Risk warning: the demand of telecom market is lower than expected, the market competition is intensified, and the price of optical module has decreased greatly

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