Matters:
On May 22, 2022, Will Semiconductor Co.Ltd.Shanghai(603501) announced that Shaoxing Weihao, a wholly-owned enterprise of the company, plans to increase its holdings of Ingenic Semiconductor Co.Ltd(300223) shares through centralized bidding or block trading, with a total investment amount of no more than RMB 4 billion, and the cumulative number of Ingenic Semiconductor Co.Ltd(300223) shares held after the increase is no more than 50 million shares and no more than 10.38% of Ingenic Semiconductor Co.Ltd(300223) total share capital. The company clearly does not seek control over Ingenic Semiconductor Co.Ltd(300223) shares.
Guoxin electronic viewpoint:
1) Weir’s main business is cis, display touch and simulation solutions. Junzheng’s main business is “computing + storage + simulation”. Especially in the field of automotive electronics, weir and Junzheng are the world’s leading CIS and storage design companies respectively. The downstream markets involve automotive, industrial, medical, communication and other fields. Through this increase, the two IC design platforms are expected to complement each other.
2) weir is the world’s second largest vehicle CIS design company, continuously deepening the layout of vehicle MCU, SerDes, display driver and other chip fields ISSI of Ingenic Semiconductor Co.Ltd(300223) is the world’s leading on-board storage design company, which is actively deploying on-board analog and connection chips. The two sides have strong complementarity in on-board chip categories, downstream customers and channels, and are expected to jointly layout the blue ocean of automotive chips.
3) Ingenic Semiconductor Co.Ltd(300223) has good technical advantages in memory technology, simulation and interconnection technology, embedded CPU technology and other aspects, and its medium and long-term performance is expected to achieve sustained growth. Combined with the current low relative valuation, weir is expected to obtain certain investment income through investment in Ingenic Semiconductor Co.Ltd(300223) and help to improve the embedded value and long-term investment benefit of assets.
We are optimistic about the continuous deepening of Will Semiconductor Co.Ltd.Shanghai(603501) “3 + n” strategic layout, the continuous expansion of Ingenic Semiconductor Co.Ltd(300223) “computing + storage + simulation” technology and product pattern, and the long-term growth momentum brought by the effective complementarity of resources between the two companies in the future, so as to maintain Will Semiconductor Co.Ltd.Shanghai(603501) buy rating and Ingenic Semiconductor Co.Ltd(300223) buy rating.
