Event: on March 27, the company announced that the company's board of directors unanimously approved the relevant motions to elect Xie Guanhong, Zhang Diaozhan, Qiu Shijia, Fu Jianjing, Li Bing and Zhao Zhenghui as non-independent directors of the sixth board of directors of the company.

Comment

1. The background teams of Foxconn and Huawei joined the board of directors to create a strong acoustic platform

According to CSC, Xie Guanhong and other six non-independent directors of the new board of directors have rich experience in the industry, and they are all important technical and management members of Foxconn and Huawei: (1) Xie Guanhong, founder of Man Mou Acoustics, has more than 30 years of experience in the electro-acoustic industry, and has served as senior executives of Foxconn Group, iDPBG Group and TMSBG Group. (2) Zhang Tiaozhan has 12 years of working experience in Foxconn, and has been responsible for the joint research, development, production and operation of iMac, iPod, iPhone, and other products. (3) Qiu Shijia has nearly 20 years of electroacoustic experience, has worked in Foxconn Group, has served as acoustic R & D manager and director-general of the Acoustic Technology Committee, and (4) Zhao Zhenghui has more than 30 years of working experience in IT, and has worked in Foxconn / Huahong Electronics / Zhending, etc. (5) Li Bing has 10 years of experience in the intellectual property Department of Foxconn and Huawei. (6) Fu Jianjing worked in Huawei's Enterprise Business and Investment Management Department from 2012 to 2015. The luxury team after the change of the board of directors provides important support for the company's acoustics career.

two。 With the completion of the transfer of shares, Acoustics became the actual controller of the company.

According to the company announcement, Weifang Hi-Tech, the former controlling shareholder, transferred 15.27% of the share capital of the listed company to Aisheng Acoustics by agreement, and completed the registration formalities on March 6. After the completion of the securities transfer registration, Acoustics has become the largest shareholder and actual controller of the company. after becoming the actual controller, Acoustics will greatly enhance the comprehensive competitiveness of the company's acoustics industry.

3. With the blessing of large funds and other institutions, the acoustics industry has entered a new journey.

According to the latest ownership structure, Shunwei Capital currently holds 11.3% equity of Wanmao Acoustics (98.9% equity of Aisheng Acoustics). The National Integrated Circuit Industry Fund will invest 400 million yuan to acquire 19.44% equity after investment, making it the second largest shareholder. Will further enhance the comprehensive competitiveness of Wandemo in the acoustics industry chain. We judge that after the indirect holding of Gunda Acoustics, with the support of large funds and other institutions, we will achieve the coordinated development of electroacoustics and Magic Acoustics, and the company will rapidly develop and upgrade in products, customers, technology, and so on. the company's acoustics business will enter a new journey.

4. Investment suggestion

We maintain the company's profit forecast and estimate that in 18-19, the company's revenue will be 1.38 billion yuan, the net profit of the parent will be 0.53 million, and the EPS will be 0.15, 0.30, respectively. We will maintain the "buy" rating and maintain the target price of 18 yuan, taking into account the cost of transferring the controlling stake.

Risk hint: the progress of new acoustic products is not as expected; the risk of business integration.