Events:
The company issued a non-public plan to raise 1.68 billion yuan from no more than 35 investors to invest in high-speed transmission connector projects, OBC R & D center projects, and liquidity replenishment. The issuing object does not include the controlling shareholder, the actual controller and the related persons controlled by the company. The number of shares issued shall not exceed 30% of the total share capital of 479694096 shares of the listed company before this issue, that is, 143908228 shares. The issue price shall not be less than 80% of the average trading price of the company's A shares in the 20 trading days before the pricing benchmark.
Event comments:
5G application penetration promotes the upgrading of data transmission connectors. The wide application of 5G communications, cloud computing, 4K video and 8K video enhances the transmission requirements of connectors. In the future, connectors will develop in the direction of high signal density, miniaturization, lightweight and high scalability. The packaging mode will also change from common PTH packaging to SMT surface packaging and BGA ball array packaging. At present, the highest transmission speed of connectors on the market is mostly 25Gbps, and it will develop to 32Gbps and 56Gbps in the future. It is expected that it will enter the era of 64Gbps and 112Gbps transmission speed in five years. The company's connector business has accumulated top quality customer resources such as Gree, Huawei, XIAOMI, Lenovo and so on. This time, it will invest 950 million yuan (including 840 million yuan of capital raised) in the construction project of high-speed transmission connector production line. It is expected to increase revenue by 1.55 billion yuan and annual profit of 220 million yuan.
It is proposed to build an OBC R & D center to enhance the supporting development capacity. The car charger of the company's meta subsidiary has established the ability and business platform to supply to the global market, and has important domestic and foreign customer orders such as BMW, Volkswagen, Porsche, PSA, Dongfeng, Peugeot Citroen, SAIC, Geely and so on. At present, the company's Chongqing Bishan plant has achieved mass production and delivery of 300000 OBC capacity to meet the electrified needs of China and Europe. Software development is an important part of project development, accounting for 40-50% of the cost. This time, it is proposed to invest 450 million yuan (including 360 million yuan) in the construction of OBC R & D center to make up for the lack of R & D personnel, software and hardware resources, and increase the customer development capacity of American and Japanese customers.
Investment advice:
After the impairment of goodwill, inventory, intangible assets and receivables in 2019, the company will be young in 2020, and its financial position will turn upwards. The company's OBC Chongqing capacity release, this investment Xu Li, help the company to recover rapidly after the recovery of the epidemic. We expect the company's revenue for 20-21 to be 89.6 or 10.605 billion yuan, net profit is expected to be 3.0 or 450 million yuan, maintain the target price of 26 yuan, and maintain the "buy" rating.
Risk hints: the recovery rate of the epidemic is not as fast as expected; the progress of non-public offering projects is not as expected; and the prosperity of the home appliance and consumer electronics industry is lower than expected.
