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Wingtech (600745): ODM and IDM double faucets first show their strength in the global market

Wingtech (600745): ODM and IDM double faucets first show their strength in the global market
Core Views Anshi Group is a global leader in semiconductor standard devices.Anshi’s predecessor is NXP’s Standard Products Division. It has more than 60 years of integrated device manufacturing experience (IDM model) and started independent operations in early 2017. According to IHS statistics, its market share of discrete devices, logic and MOSFET devicesThey are all in the top three in the world.AXA has a worldwide sales network and 16 sales offices. Its customers include top global manufacturers and service providers such as Bosch, Huawei, Apple, Samsung, and ASUS.  The plan to acquire Anshi has passed the meeting and obtained the approval of the Securities Regulatory Commission, and the reorganization has entered the implementation stage.Although the company’s reorganization 北京夜网 plan is highly complicated and the overall progress is smooth, in April 2018, the consortium led by Wingtech jointly won Anshi33.66% of the shares, to achieve control of Anshi, and then announced in December the restructuring plan, plans to acquire Anshi Semiconductor 79.98% equity. On June 6, this year, the acquisition plan was approved by the CSRC. On June 26, the company officially received the approval from the CSRC.We believe that Anshi and Wingtech are in the upstream and downstream of the industrial chain, and customer resources can achieve complementary advantages.In addition, the two parties are expected to achieve rapid business development in high-growth areas such as 5G and IoT through joint innovation.  Financial forecasts and investment recommendations maintain a BUY rating with a target price of 49.83 yuan.We predict 武汉夜网论坛 that the company’s main business of ODM will return 6 to net profit in 2019-2021.61/8.84/13.20 ppm (former predictor 6).30/8.65/11.78 ppm), the slight increase in profit forecast is mainly due to the company’s international customers’ profit contribution is expected to exceed expectations.  At present, the three-table model does not consider consolidation. The main reason is that the equity of Anshi is still in the process of delivery. The company has not disclosed the first quarterly report of the actual consolidation of Anshi.However, considering that the company’s current expectations already include the expectation that the company’s performance will increase after the company’s consolidation becomes a controlling subsidiary of the company, we consider using the diluted EPS after the consolidation.If we consider the consolidation, we predict that the diluted EPS for 2020-2021 will be 1.51 and 2.09 yuan, with reference to comparable companies, we believe that the current company’s reasonable estimate level is 33 times the price-earnings ratio in 2020, the corresponding target price is 49.83 yuan, maintain BUY rating.  Risks indicate later-stage transaction risks, the risk that performance is not up to expectations, and the risk of impairment of customer relationships at AXA.