Xinxing (3037-TW) and its reinvestment in the carrier board factory Xu De (8179-TW) today (21st) both have major news to be announced, and will suspend trading from the 22nd. Judging from the pace of Xinxing’s massive expansion of carrier board production capacity, the market speculates that Xinxing has a very high chance of merging with Xude through a share swap.
Xude was established in 1998. The current share capital is 2.959 billion yuan. The application part of the product is different from Xinxing. The more mature process applications include RF radio frequency modules, Mini LEDs, IoT sensing components, etc., which have been continuously optimized in recent years. Operating physique, with the changes in the market structure of BT substrates and the increase in demand, Xu De has a production capacity expansion plan and will invest 3.2 billion yuan to expand its factory in Hsinchu.
Xinxing holds 30.59% of the shares. Xinxing is the largest shareholder. The chairman of the two companies is also Zeng Zizhang. Xude’s revenue in 2021 will be 4.821 billion yuan, an annual increase of 24.12%, and the net profit after tax in the first half of the year will be 216 million yuan. , an annual increase of 8.63 times, the net profit per share was 0.74 yuan, and the closing price of Xude today was 41.35 yuan.
Xinxing continues to deploy in the mid-to-high-end carrier board market, and aims to become one of the few suppliers of high-end carrier boards in the world from 2025 to 2028. Due to the early layout of Xinxing in the ABF carrier board, there are many speculations in the market. production capacity and expand operations in the field of ABF and BT substrates.