Sanan Optoelectronics (600703) dynamic comment: Raise 7 billion funds to invest in high-end chip field

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05/13/2020 0 Comment

Sanan Optoelectronics (600703) dynamic comment: Raise 7 billion funds to invest in high-end chip field

Announced that the proposed non-public offering of raised funds of 7 billion US dollars will be used to pay for the Quanzhou Sanan (Phase 1) project company to announce a non-public additional issuance plan.Phase I project. ”

The issue targets were Pioneer Gaoxin (invested 5 billion) and Gree Electric (invested 2 billion).

The fixed increase price is 90% of the average transaction price in the 20 trading days before the pricing reference date. The fixed increase number of shares calculated at the current price is approximately 13.
.

11%.

The background indicators of the issuance targets are the state-owned background investment fund and the leading domestic home appliance listed company Leader Gaoxin. The main investors are Pioneer Holdings (investing 30 billion), Zhongying Investment (10 billion), and Lugu Construction (5 billion).They are Changsha Chengfa, Xiangjiang Group and Gaoxin Holding’s wholly-owned subsidiaries.

Pioneer Investment, a wholly-owned subsidiary of Pioneer Holdings, invested as GP5.

5.0 billion, and its 39% stake in Zhentai Investment, as the manager of the leading high core.

Changsha Chengfa, the parent company of Pioneer Holdings, has the full name of “Changsha Urban Development Group Co., Ltd.” as an asset of Changsha State-owned Assets Supervision and Administration Commission.yuan.

Gree Electrical Appliances is a well-known listed company in the country. It is mainly engaged in home appliances and has an annual revenue of 200 billion yuan. Since 18 years, it has been involved in the semiconductor chip industry many times.

This time, the company’s entry into Sanan by way of fixed increase shows that it is optimistic about the development prospects of Sanan Optoelectronics in the compound semiconductor chip industry.

Quanzhou’s high-end LED projects have steadily pushed forward capacity expansion. Sanan Optoelectronics announced in December 17 that it had signed a cooperation agreement with the Fujian Quanzhou and Nan’an governments to change the total investment to 33.3 billion U.S. dollars.In the first phase of the project, the total investment of the project was 13.8 billion yuan, accounting for 41% of the total investment of the agreement.

The annual sales of the first-phase project are expected to be 82.

4.4 billion, net profit 19.

9.2 billion yuan.

The first-phase construction project mainly includes three major business segments: the gallium nitride business segment, the gallium arsenide business segment, and the special packaging business segment.

The planned production capacity of new blue-green LED chips is 7.69 million pieces / year, of which Mini / Micro chips are about 1.62 million pieces / year; high-power lasers have an annual output of about 1.42 million pieces; red and yellow LED chips are about 1.23 million pieces,南京夜网 of which Mini / Micro chips are 18 10,000 pieces / year, high-power infrared products 140,000 pieces / year; solar cell chips about 410,000 pieces / month; special packaging business capacity 8724kk / year, including Mini LED package 8483kk / year.

As of the March 2019 quarterly report, the company’s Quanzhou San’an semiconductor project has progressed smoothly, some equipment has entered the installation and commissioning stage, and some production capacity has gradually begun to be released.

The company’s industry as a whole is stable, with long-term competitive development. Maintaining the “overweight” rating will lead to a decline in profitability in the short term. The company’s supplementary production capacity is released and the industry’s prosperity is picking up.

74/21.

12 trillion, corresponding to PE 38/28 times.

The company’s leadership in the field of LED chips is stable, while it is vigorously developing high-end chips, optimistic about the future prospects, maintaining the “overweight” level.

Risks suggest that the LED industry’s demand continues to fall short of expectations, and the prolonged destocking cycle of the industry leads to a decline in profitability.