matter:
May 22, 2022Weir Sharesreleaseannouncement: Shaoxing Weihao, a wholly-owned enterprise of the company, plans to conduct centralized bidding orbig dealIncrease holdings in other waysBeijing JunzhengStocks, the total investment amount does not exceed RMB 4 billion, and the accumulated holdings after the increaseBeijing JunzhengThe number of shares shall not exceed 50 million shares and shall not exceedBeijing Junzheng10.38% of the total share capital, the company clearly does not seek control over Beijing Junzheng.
Guoxin Electronics’ point of view:
1) Weir’s main business is CIS, display touch and analog solutions, and Junzheng’s main business is “computing + storage + simulation”, especially in the field of automotive electronics, Weir and Junzheng are the world’s leading CIS and For storage design companies, downstream markets all involve automotive, industrial, medical, communications and other fields. Through this increase in holdings, the two IC design platforms are expected to achieve complementary resources.
2) Vail is the world’s second largest automotive CIS design company, and is continuously deepening the layout of automotive MCU, Serdes, display driver and other chip fields; Beijing Junzheng’s ISSI is the world’s leading automotive storage design company, and is actively deploying automotive simulation and connection chips. The two parties are highly complementary in vehicle chip categories, downstream customers and channels, and are expected to work togethercar chipblue ocean.
3) Beijing Junzheng has good technical advantages in memory technology, simulation and interconnection technology, embedded CPU technology, etc.performanceIt is expected to achieve sustainable growth. Combined with the current low relative valuation, Weir is expected to obtain a certain investment income by investing in Beijing Junzheng, which will help improve the intrinsic value of assets and long-term investment benefits.
we are bullishWeir SharesThe continuous deepening of the “3+N” strategic layout, the continuous expansion of Beijing Junzheng’s “computing + storage + simulation” technology and product layout, and the long-term growth momentum brought about by the effective complementarity of resources between the two companies in the future, will maintainWeir SharesBuy rating, Beijing Junzheng Buy rating.
(Article Source:Guosen Securities）
Article source: Guosen Securities
Responsible editor: 91
Original title: Semiconductor industry comment: Weir shares increased holdings of Beijing Junzheng Comment: The two IC design platforms complement each other in resources and work together to lay out the blue ocean of automotive chips
Solemnly declare: Oriental Fortune.com releases this information for the purpose of disseminating more information and has nothing to do with the position of this site.