occurrences
The company plans to purchase 30.24% of Jiejie Nantong Technology's shares by issuing shares and paying in cash. Among them, issuing shares and paying consideration in cash accounts for 65.00% and 35.00% of the transaction consideration, respectively. After the transaction is completed, the listed company will hold 91.55% of Jiejie Nantong Technology's shares.
Key points of investment
After the transaction was completed, it held a total of 91.55% of Jiejie Nantong Technology's shares. In January-January 2024, the actual output of Jiejie Nantong Technology was 156,400 tablets. Based on the average monthly production capacity (80,000 tablets) and output, the average monthly capacity utilization rate in January and February reached 97.72%. The estimated output in 2024 is 1.023,400 tablets (assuming an annual capacity utilization rate of 93.72%). Prior to this transaction, Jiejie Microelectronics already held 61.31% of Jiejie Nantong Technology's shares. After the issuance of shares and payment of cash to purchase minority shares in Jiejie Nantong Technology, the listed company will hold 91.55% of Jiejie Nantong Technology's shares to improve the IDM model.
Q4 Revenue continued to increase month-on-month, and gross margin began to recover. With the gradual recovery of the consumer electronics market and the gradual completion of inventory removal by manufacturers, the global semiconductor market will gradually resume growth in the second half of 2023. In 2023, the company achieved revenue of 2.106 billion yuan, +15.51% year over year; net profit to mother of 219 million yuan, -39.04% year on year; comprehensive gross profit margin of 34.13%, or -6.28% year over year. Looking at a single quarter, Q4 achieved revenue of 680 million yuan, +29.52% month-on-month; net profit to mother of 77 million yuan, +67.39% month-on-month, and gross profit margin of 33.23%. Since the beginning of 2024, many power semiconductor companies in the industry have issued price increase notices, with price increases ranging from 10% to 25%. In January of this year, Jiejie Nantong issued price increases to customers, and the unit price of the Trench Mosfet product line was raised by 5%-10%. It is expected that gross margin will gradually recover throughout the year.
Actively expand product models, and overseas markets are progressing smoothly. The company actively develops a product line of automotive-grade power semiconductor protective devices, lays out unique FRD and high-end rectifier product lines, further expands applications in the fields of new energy vehicles, photovoltaics, wind power, communication equipment, etc., and builds the entire power semiconductor IDM industry chain. Multi-core technology and strong industry layout are expected to bring about multiple performance growth curves. In addition, the company's products have also been recognized by well-known foreign manufacturers, and the company's products are now exported to South Korea, Japan, Spain, etc.
Investment advice:
We expect the company's 2024-2026 net profit to be 3.6/50/ 7.0 billion yuan, maintaining a “buy” rating.
Risk warning:
Product development and technological innovation fell short of expectations; industry competition increased risks; product promotion fell short of expectations.