Follow the growth path of international electronic distribution giants, continue to merge and integrate high-quality enterprises in the same industry. Following the growth path of international electronic distribution giants such as Avnet, Arrow and WPG, the company has realized the integration of new product lines through mergers and acquisitions of high-quality enterprises, rapidly cutting into new downstream areas and consolidating the company's leading position in the industry. The company's revenue has increased rapidly in the past five years, breaking through the 10 billion mark in 2015, reaching 12.1 billion, and the growth rates from 2018 to 2018 were 260.83%, 138.35%, 75.27% and 63.71%, respectively.
Sit on the agency of scarce resources, covering a wide range of industries. The company has been engaged in the field of electronic distribution for nearly 30 years, covering cloud computing, communications, automotive, home appliances, public facilities, industry and other industries, and has accumulated tens of thousands of large customer groups. The company has the agency of the world's famous master chip brand MTK and SK Hynix (SK Hynix), one of the three whole-industry chain memory suppliers in the world. it is the only distributor with top master control and memory chip agency in China, occupying the core components of intelligent hardware products. The company has successively developed the agency rights of well-known original manufacturers, such as China's optical module leader optical technology, the world's largest third-party memory control chip cluster and domestic connector leader Lixun precision, and continue to enrich the product line layout in the field of cloud services.
DRAM products cover the leading enterprises of cloud computing in China, fully enjoying the growth dividend of the industry. In the field of cloud services, the DRAM products of Yingtang Intelligent Control subsidiary United Chuangtai cover the two leading cloud computing companies, Aliyun and Tencent Cloud, with the highest market share in the same industry. According to Gartner, the global cloud computing market will reach US $411.4 billion by 2020, with a compound growth rate of 16.99% from 2016 to 2020.
The acquisition of pioneer micro-technology, coordinated development, to create a semiconductor industry chain. The company plans to acquire a 100% stake in Pioneer Micro Technology Co., Ltd. with 3 billion yen in cash. The long-term accumulation of pioneer micro technology in the field of optoelectronic digital signal conversion and transmission can transform its technical applications in the fields of optoelectronic integrated circuits, optical sensors and vehicle IC to the current fast-growing optical communication market and new energy vehicle market. Through the combination with the company's customer resources in the domestic optical communication industry and new energy vehicle industry, the pioneer micro-technology quickly responds to complete the customized design, and finally hands over to the contract factory to complete the production and manufacture and realize the domestic sales industry chain.
Participate in Shanghai Core Stone, set up a joint venture company, cut into SIC power devices. The silicon carbide (SiC) power semiconductor market is experiencing a sudden surge in demand. According to the China Industry Information Network, the annual output value of silicon carbide power devices has maintained rapid growth since 2014, and is expected to reach 437 million US dollars in 2020, a growth rate of 11.48 per cent. The company actively arranges SiC semiconductor power devices to seize the market opportunity.
Profit forecast and valuation. As a leading enterprise of domestic electronic distribution, the company integrates industry resources through mergers and acquisitions, and vertically derives to the upstream semiconductor field. We are optimistic about the development of the company for a long time. We expect that in 19-21, the company will achieve a net profit of 0.3 RMB, with a target price of 9.30 yuan and a "buy" rating.
Risk tips: intensified competition in the industry; loss of core customers; acquisition progress is not as expected; exchange rate fluctuation risk.