Ziguang Group reorganizes the battle and throws down the special chip leader to set sail [Agency Review]

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Event: the company received the notice of Tsinghua Holdings about Tsinghua University's free transfer of shares in Tsinghua Holdings Co., Ltd., forwarded by the indirect controlling shareholder Ziguang Group. It is proposed that the 100% stake in Tsinghua Holdings will be transferred to Sichuan Neng Investment through free transfer. At the same time, Ziguang Group identified the consortium of Beijing Zhilu Asset Management Co., Ltd. and Beijing Jianguang Asset Management Co., Ltd. as the lead investors in the substantive merger and restructuring of seven enterprises such as Ziguang Group.

The group's equity is transferred to Sichuan Neng Investment for free. Tsinghua University, the investor of Tsinghua Holdings Co., Ltd., signed the "Agreement on Free transfer of State-owned property Rights" with Sichuan Neng Investment on December 10, 2021, and intends to transfer its 100% stake in Tsinghua Holdings to Sichuan Neng Investment through free transfer. With regard to this transfer, we need the approval of the Ministry of Education, the approval of Sichuan SASAC for investment, and the centralized examination of the operators of this transfer through the Anti-monopoly Bureau. Sichuan Energy Investment is an important main body to promote the construction of energy infrastructure and speed up the construction of major energy projects in Sichuan Province. It has two listed companies, Sichuan Energy Power and Sichuan Neng Investment Development Co., Ltd., and the total assets of the group have exceeded 180 billion yuan. We judge that the introduction of war investment may increase capital and shares, introduce state-owned assets into other minority shareholders to ensure the completion of restructuring, and continue to follow the development of follow-up events.

The group's strategic investors reorganized and landed, and Zhilu Jianguang consortium was selected. Ziguang Group has identified the consortium of Beijing Zhilu Asset Management Co., Ltd. And Beijing Jianguang Asset Management Co., Ltd. as leaders as strategic investors in the substantive merger and restructuring of seven enterprises, including Ziguang Group. Zhilu Capital is a global professional equity investment institution focusing on semiconductor core technology and other emerging high-end technology investments. Recently, he has been involved in the acquisition of four packaging plants in mainland China owned by Nikko, the world's largest semiconductor closed test manufacturer, and ePAK;, the world's top four supplier of semiconductor vehicles, and ASM PACIFIC, the world's largest supplier of back-end packaging equipment, to establish AAMI, to provide lead frames for memories, analog chips, microcontrollers and automotive chips. Participate in the acquisition of NXP Standard products Division, and then sell to Wentai Technology and so on. Beijing Jianguang is a private equity fund management company specializing in investment mergers and acquisitions in integrated circuit industry and strategic emerging industries. Recently, it has participated in the following projects: the acquisition of the business and related patents of (NXP) 's high-performance RF power amplifier division of NXP Semiconductor for US $1.8 billion. Merger and acquisition of NXP standard product business project. Lead Qualcomm, Datang Telecom and Zhilu Capital to set up a joint venture company-Xisheng Technology, which focuses on smartphone chipset business. Acquired an 80 per cent stake in Germany's ficonTEC. FiconTEC is one of the world's leading equipment manufacturers in the field of optoelectronics and semiconductor automation packaging and testing.

Zheshang Securities believes that: 1 the landing of the asset restructuring has little impact on the operation of Ziguang. The equity of Jianguang assets is penetrated into state-owned assets, and Zhilu Capital is a global professional equity investment institution, focusing on semiconductor core technology and other emerging high-end technologies. With the gradual landing of the restructuring, Ziguang is expected to play a synergistic effect with the help of resources in the field of semiconductors such as Zhilu and Jianguang. The strategic investors of Group 2 are state-owned assets in the end, which is more concentrated than Shanghai + Zhejiang SASAC, which was judged by the original market, and the management efficiency is improved. At the same time, Zhilu's experience in mergers and acquisitions and capital operation in the semiconductor field is helpful to the group's follow-up capital operation. (4) in the process of reorganization, we can obviously see that Ziguang Group focuses on the core cloud strategy. Beijing Zhilu and Jianguang play a strong role in promoting the chip business group; if more senior or senior cloud vendors participate, the cloud business group will also gain lasting momentum for development. We will further track the composition of cloud vendors in the consortium.

Investment suggestion: Ziguang Guowei is a leader in special chips, with rapid growth of orders, rapid expansion of super SIM business, and domestic alternative opportunities for vehicle controller chips. We are optimistic about the company's long-term growth. Maintain the forecast company's 2021-2023 homing net profit of 1.76 billion / 2.62 billion / 3.62 billion yuan respectively, corresponding to the EPS score of 2.90, 4.32, 5.97, maintain the "buy" rating, the target price is 296 yuan.