Sanan Optoelectronics (600703) Company Comments: Major Shareholders’ Equity Premium 深圳spa会所 Risk Decreases, Company Progress Progresses

Event: On September 21 and September 25, the company announced that Sanan Electronics, the shareholder and shareholder, lifted the pledge of shares, which was lifted a total of 186 million shares.

At present, San’an Electronics and San’an Group Co., Ltd. combined to hold a total of 1,457,442,001 shares of San’an Optoelectronics (approximately 35 of the total share capital of listed companies.

74%), accumulatively pledged 1,088,820,000 shares, and the pledged shares accounted for about 74 of the total shares of the company held by the company.

71%.

The fair pledge rate of major shareholders is reduced, and risks are gradually released.

The proportion of major shareholders’ fair pledges peaked from 87 during the year.

47% canceled 74.

71%, the equity pledge risk is gradually being lifted.

From the financial report of the parent company of San’an Group, current assets are 147.

30 ppm, an increase from the initial stage; flow resistance is 177.

410,000 yuan, relative to the initial decline, the overall asset structure adjustment is better.

The major shareholders’ financial improvement and reduction of their own property rights pledge risk will enhance market confidence, and listed companies will gradually advance to meet restructuring.

Inventory pressure is contradictory, and it is expected to gradually improve in the future.

The semi-annual inventory is 32.

38 trillion, almost close to the first half of the revenue, and still increased relative to Q1, meaning that the company’s financial statements need more time to repair.

From the perspective of the industry in the third quarter, supply and demand are balanced, white-light chip prices are stable, and the capacity utilization rate of downstream packaging plants has increased. We expect the company’s inventory to enter a downward channel.

And at a later time, we judge that after the next 2?
After three quarters of digestion, the company’s inventory will tend to a reasonable level.

The industry as a whole is in the expected state, and the company’s ability to resist risk is involved.

In the first half of the year, the gross profit margin of LED chip factories generally increased, and even fell to a negative value. The gross profit margin of Sanan Q2 was 33.

32%, horizontal comparison still has high profitability.

During the downturn of the industry, the company’s competitive advantage will become more prominent, and its market share will increase. After the industry boom resumes, the company will enjoy the profit space created by the competitive landscape.

Breakthrough in compound semiconductor business.

The three or five compound semiconductors are the basic materials in the 5G era. The company’s process capabilities cover the four major product areas of microwave radio frequency, power electronics, optical communication and filters. As a rare domestic manufacturing substitute, the company’s importance in the future industrial development is not significant.It goes without saying.

In terms of specific progress, as of the end of 2018, San’an integrated crystallized gallium radio frequency chip production capacity was 1,000 pieces / month, gallium nitride radio frequency chip production capacity was 100 pieces / month, power electronics chip production capacity was 500 pieces / month, and optical communicationsThe chip production capacity is 750 pieces / month, which already has a certain production capacity.

From the perspective of customer pioneers, the appointment of new customers has accelerated in the first half of the year, and potential large customers have become closer. This has transformed the acceleration of domestic substitution and the explosion of demand, and the compound semiconductor business is about to usher in a breakthrough.

Downgrade to “overweight” level.

We believe that the company’s main business can only be confirmed after the inventory has fallen, and the compound semiconductor business cannot contribute to the performance in the short term. The company needs to gradually recover its statements.

We estimate the company’s net profit attributable to its parent to be 14 in the next three years.

9.2 billion / 19.

04 billion / 23.

9.6 billion, corresponding to 44.

16/34.

60/27.

49, adjusted to the “overweight” level.

Risk alert event: LED inventory impairment risk; compound business development is less than expected.