Cash acquisition of 51% stake in CALIENT, layout of optical switch market
The company will terminate the original plan and will indirectly hold a 51% stake in CALIENT through the project holding company, with a basic transaction consideration of US $147.9 million, or RMB 1.0019 billion (at US $2017.6.30 to RMB 6.7744). At present, the relevant progress has been advanced through the independent directors of the company, the board of directors of the target company, the antitrust review of the United States and the review of national security issues by the Committee on Foreign Investment in the United States. In addition, follow-up may continue to acquire 20% of the equity according to the specific circumstances.
Through the epitaxial layout of pure optical switch business, there is a huge space in the future.
At present, operators and third-party customers have heavy capital expenditure on data center and network transmission, especially under the influence of the current development direction of cloud computing and edge computing, it is particularly important to control the relevant CAPEX and OPEX, and even directly affect the number of data centers and transmission networks considered.
The company obtains the equity of CALIENT through epitaxy and actively arranges the pure optical switch business, which is worthy of attention.
CALIENT is an industry leader in data center products and SDN optical transmission. Customers include Huawei, Ericsson, Nokia, ZTE, Cisco Systems, Juniper, Google, Tencent, Amazon.Com Inc, BABA, Baidu, Inc., Microsoft Corp, IBM and other high-quality enterprises. At the same time, relevant solutions can solve a large number of CAPEX of operators in data centers and transmission networks. With the change of cloud computing topology and the improvement of SDN/NFV requirements in the future, the relevant market space will be gradually opened, and the company is expected to become an industry leader.
China's leading supplier of precision structural parts, vertical integration
Precision light metal structure technology leader, scarce integrated solution provider. At present, the company has become one of the professional service providers with the most R & D strength and scale production capacity of precision aluminum alloy structures in China.
Downstream high-end customer resources are stable. The company is mainly engaged in communications, consumer electronics and automotive, and has successively become a qualified supplier for high-end customers such as Nokia Siemens, Alcatel-Lucent, German Bei'er, Johnson controls of the United States, Nippon Electric, Samsung Electronics and so on. We believe that enterprises with strong technical strength, high-end customer resources and management advantages in the industry can obtain higher excess profits.
Deep ploughing the steady growth of the three major businesses and accelerating the pace of extension. Among the three new companies acquired by the company in 2017, Kai Mao Technology and Zehong Technology had a positive impact on the company's results in the first half of 2017, while Hong Yijin had no significant impact. In addition, the company adheres to the strategy of differentiated development to relevant complementary industries for a long time, continues to actively open up new markets, new industries and new customers, and successfully enters and develops the business of security, new energy, financial leasing, commercial factoring and other industries. to promote the company's product industry and customer composition of more diversification and differentiation.
Risk hint
1. According to the contents of the announcement, a series of procedures are required for the subsequent approval, which is uncertain.
2. The technology of pure optical switch is relatively advanced, and the arrival time of the rapid growth period of the market is uncertain.
3. From the perspective of disclosure, the future performance of CALIENT is uncertain.
4. The suspension market of the company is long, and the stock price fluctuation is uncertain after the resumption of trading.