\u3000\u3000 Hangzhou Chang Chuan Technology Co.Ltd(300604) (300604)
Events: ① the company announced 2021 performance forecast; ② Announce the plan to acquire 97.67% equity of Changyi technology; ③ Announce the restricted stock incentive plan for 2022.
Benefiting from the high prospect of the semiconductor industry, the company’s performance will be greatly improved in 2021
In 2021, the company realized a net profit attributable to the parent company of 180-230 million yuan, with a year-on-year increase of 112.12% – 171.04%. In 2021, it realized a net profit attributable to the parent company of 156-206 million yuan, with a year-on-year increase of 254.43% – 368.03%. The profit basically met the market expectation. The main reasons for the substantial improvement of the company’s performance in 2021 are: on the one hand, the prosperity of the integrated circuit industry is high, and the downstream customers have strong demand for semiconductor test equipment; On the other hand, the company continued to increase its market share, especially the year-on-year significant increase of testing machine products, and achieved a significant increase in the overall operating revenue through measures such as continuously increasing the research and development of new products and new market development, and increasing the cooperation with well-known customers in the industry. In addition, with the continuous and rapid expansion of revenue scale, we speculate that the expense rate of the company has decreased to a certain extent and the profitability has increased steadily.
Acquire high-quality assets of turret sorter, enrich product line and enhance overall competitiveness
The company plans to acquire 97.6687% equity of Changyi technology by issuing shares. The transaction price of 97.6687% equity of Changyi technology in this transaction is tentatively set at RMB 273.5 million. The core assets held by the target company are exis tech SDN.BHD. the core products of exis are mainly turret sorters. Downstream customers include well-known semiconductor companies such as Broadcom, MPs, NXP, Byd Company Limited(002594) semiconductor, as well as integrated circuit packaging and testing enterprises such as ASE, UTAC, Tongfu Microelectronics Co.Ltd(002156) , Tianshui Huatian Technology Co.Ltd(002185) . We believe that this merger and acquisition is of great significance to the company: ① the company has a high degree of coordination with exis in products, sales channels and R & D technology. This transaction will help listed companies enrich product types, realize the full coverage of gravity sorter, translation sorter and turret sorter, and improve the overall competitiveness of the company. ② 2021q1-3 Changyi Technology (the main asset is the 100% equity of exis) has a revenue of 249 million yuan, a net profit of 67 million yuan and a price of 280 million yuan for the target company. It can be seen that the valuation is relatively cheap and the profitability of the target company is excellent. With the subsequent consolidation, the profitability of the company will be further improved.
It is proposed to launch the restricted stock incentive plan in 2022 to mobilize the enthusiasm of employees and benefit long-term development
The company announced the restricted stock incentive plan for 2022. The total number of restricted shares to be granted to incentive objects in the incentive plan is 5.2 million, including 4.2 million shares for the first time. The corresponding assessment year is 2022-2024. Based on the operating income in 2021, the revenue growth rate in 2022-2024 shall not be less than 25% / 56% / 95%. Since 2021, the company has issued equity incentive again, reflecting the company’s attention to employee incentive. Secondly, the total number of incentive objects granted for the first time is 156. They are the core personnel serving in the company, and there are no company executives, reflecting the company’s attention to the core employees at the bottom. The further sinking of this incentive can fully mobilize the enthusiasm of employees and contribute to the stable development of the company.
Profit forecast and investment rating: we expect the company’s EPS from 2021 to 2023 to be 0.35, 0.83 and 1.18 yuan respectively, and the corresponding dynamic PE of the current stock price is 144 / 60 / 42 times respectively. As the leader of local testing equipment, the company will fully benefit from the eastward shift of semiconductor production capacity & domestic substitution of equipment, and maintain the “buy” rating.
Risk tip: the investment in the semiconductor industry is less than expected, the progress of new product R & D is less than expected, the management risk caused by scale expansion, and the failure of M & A exis.
