[matters]
On June 29, 2022, Zhongshi Science and Technology announcement signed an "equity transfer agreement" with Hu Xunliang, he Yang and Tang Li, shareholders of Wuxi Zhongshi Kuluojie Technology Co., Ltd. Hu Xunliang, he Yang and Tangli jointly held 5% of Ku Luojie with 3.0103 million yuan of its own capital, of which Hu Xunliang held 4.15% of Ku Luojie with 249.85 million of its own funds. He Yang held 0.63% equity of Kuluojie with his own capital of 375000 yuan and 0.22% of Kulojie held by Tang Li with his own capital of 136800 yuan. After the acquisition, the company will own 88.67% of Kulojie.
[comments]
Its products have a wide range of applications and effectively weaken the impact of periodic fluctuations. This transaction is based on the company's decision based on long-term business development planning. Wuxi Zhongshi Kulojie Technology Co., Ltd., a holding subsidiary, is mainly engaged in R & D, manufacturing and sales of electronic components, which is in line with the company's long-term development strategy. this equity acquisition also helps the company to support Kulojie to better carry out business and enhance its comprehensive competitiveness. Zhongshi science and technology products are widely used in a wide range of fields, and the company's functional materials and components are used in all kinds of industries, so the periodic disturbance of a single industry has a weak impact on the company. at present, the company's products are widely used in consumer electronics, digital infrastructure, intelligent transportation, clean energy and other fields.
A number of product tracks go hand in hand, and on-board products are certified by customers and delivered in batches. 1) in the field of consumer electronics, the share of graphite coil remains stable, and the company continues to consolidate its global leading position of graphite coil through continuous upgrading of process technology and expansion of newly established production capacity; die-cutting product line, the company currently covers most of the demand models of mobile phone products, with the increase of application and demand in products such as Pad, tablet PC and wireless charging, die-cutting market share is gradually increasing. 2) in the field of intelligent transportation, the company aims at thermal management function solutions in the fields of new energy vehicles, self-driving, intelligent cockpit, three electric systems, etc. The main products that can be provided include thermal modules, synthetic graphite, thermal interface materials (thermal silicone grease, thermal conductive gel, thermal conductive gasket), EMI shielding materials, etc. Customers in the automotive industry cover Tier1 parts factory, mainframe factory, etc., some products have been certified by customers, and some products have begun to be delivered in bulk. In the future, with the gradual introduction of high-value products, it is expected to continue to optimize the company's product structure, thus leading to the improvement of profitability.
Speed up the construction of global production capacity, strengthen delivery capacity and performance growth momentum. In order to further expand overseas markets, build a global delivery base, and meet the needs of the globalization of the industrial chain, the company launched the construction project of a factory in Thailand in 2021. 103mu of land and more than 5, 000 square meters of factory buildings have been purchased in WHA East Industrial Park, Luoyong Province, an eastern industrial corridor in Thailand. So far, major renovation and equipment procurement and installation have been completed, laying a good foundation for the completion and commissioning of the first phase of the project in the first half of 2022. In addition, the company is also actively expanding production in Wuxi and Dongguan. The capacity expansion of the three places will greatly increase the production capacity of graphite products and further strengthen the global delivery capacity and supply stability. At present, the company Yixing production expansion project continues to push forward, laying the foundation for capacity release.
[investment advice]
Functional materials and components industries are in the sunrise period all over the world, leading enterprises have acquired a large amount of high-quality assets to meet the diversified and forward-looking needs of the new generation of information, energy and transportation, and to meet the increasingly complex challenges faced by OEM manufacturers in thermal management, signal integrity, miniaturization, power management and reliability, so we are optimistic about the development prospects of the industry. It is estimated that the operating income, net profit, EPS and PE of the company in 2024 will be 15.64max, 20.57 / 2.639 billion, 1.81, 2.91 / 390 million, 0.64, 1.04 and 1.39 respectively, respectively, and will be rated as "over-holding".
[risk Tip]
The progress of the new track is not as good as expected.
Exchange rate fluctuation risk
Fluctuation of macroeconomic environment
Risk of decline in consumer electronics demand.
