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Weir shares (603501): M & A Haowei Technology passed

Weir shares (603501): M & A Haowei Technology passed
Investment Highlights Event: On June 22, Weier shares received the formal approval from the Securities and Futures Commission on the merger and acquisition of Howell Technology.  The CMOS image sensor giant set sail.The acquisition of Haowei Technology 85.53% of the shares, issued 3.9.9 billion shares at an issue price of 33.88 yuan, at the same time raised 20 trillion matching funds, issued 0.9.1 billion shares.Howell Technology’s promised performance after deduction is not less than 5 in 2019-2021.450,000 yuan, 8.45 ppm and 11.2.6 billion.At the same time, it issued shares to purchase the relevant equity of Spike and Video Source.  The mobile phone launched a 48M revolutionary product and entered the high-end main camera market.On June 17th, Howell Technology’s official website released the latest 48 million products OV48B.The successful launch of this product means that the company has officially entered the vast blue ocean market of the main camera. At present, it mainly covers the main camera of 3-5 timetables. According to the official micro-information company products, it is scheduled to be delivered to customers in batches in the fourth quarter of 2019.  High-output 重庆耍耍网 products continue to make efforts to help the company’s performance grow rapidly.Because the product launched this time is 0.8μm OV48B, according to the product development plan, the company is expected to follow up to 0.It is developing in the direction of 7μm, and it is expected to move forward to 64 million, so as to catch up with the pace of Samsung product launch. At the same time, it will further close the strong force in the automotive field with Sony, and the overall layout of the Asia-Pacific North America market.The company mainly occupied a relatively high share in the leading car companies in Europe and America.Since 2018, the company has strongly entered the Japanese car company market. Since the Japanese car company’s certification cycle is shorter than that in Europe and the United States, it is expected that the company’s market share in the Asia-Pacific market will exceed that of Aptina in 2021, and the US market will continue to exert force.  The security market continued its efforts to seize market share of high-end products.The company’s Nyxel near-infrared technology is at the leading level in the industry, and indicators such as product signal-to-noise ratio are in series with the advantages of the same industry.With the construction of digital high-definition, the demand for starlight products continues to increase, and the company’s market share in major customers will gradually increase with the advantage of technology.  Profit forecast and rating.Without considering the acquisition, and taking into account the fair incentive amortization costs in management costs, we maintain the company’s EPS for 2019-2021 to be 0.35, 0.69, 0.87 yuan.Considering that the company’s market share has gradually increased after the company’s acquisition of Howell Technology, its revenue in the next five years will reach the only domestic semiconductor design company second to Huawei Hisilicon, and maintain a “buy” rating.  Risk reminder: The company faces a downturn in the downstream market and the risk of mergers and acquisitions failing to achieve the expected results.