Sanan Optoelectronics (600703): The company ‘s non-public release date Yangtze River Pilot 2020 is optimistic about MINI-LED and compound semiconductors!

Sanan non-public offering wants to date the Yangtze River Pioneer, and 7 billion to strengthen the company’s financial strength.

As the LED chip leader, the company plans to raise funds for non-public offerings with a budget of no more than 7 billion.

Changsha Leading Gaoxin Investment plans to subscribe for 50 trillion yuan, and Gree Electric intends to subscribe for 2 billion yuan.

Proposed semiconductor R & D and industrialization project (Phase 1) with net proceeds raised after issuance expenses.

We believe that this part of the capital can significantly improve the company’s capital structure, and its net assets will be greatly increased. At the same time, the company’s asset-liability ratio will also decline to a certain extent, which is conducive to enhancing the stability of the company’s asset structure and its ability to resist risks.

Sanan’s 19-year performance forecast is in line with the overall market expectations. We research and judge the 19-year period to see Mini-LED volume and compound semiconductor business realizing profits.

The company announced that the 19-year return net profit range was 12.

740,000 yuan -15.

5.7 billion, after deduction is returned to the mother to 6.

74 ppm-8.

At 99 ‰, the net profit attributable to the mother for the Q4 quarter of 19 was 1.

21 ppm-4.

04 billion, deducted from the mother after returning to -0.


1.1 billion.

Overall in line with market expectations.

Mini-LED will be the most important investment opportunity for the LED industry in the next two years. The polarized industry 深圳SPA会所 structure needs to seize the technological leadership.

A customer is choosing a new display technology route. Tablets, monitors and other products will still use the LCD technology path. The choice of Mini-LED has gradually taken shape. We study from Sanan’s market share and product competitiveness.Judging that Sanan has the opportunity to become the main supplier of customers.

From the perspective of 19Q3, the quotation of the industry’s LED chips has caused market players to lose cash costs, the bottom-most gaming game.

The company’s single quarter gross margin recovered rapidly in 18Q4-19Q3, of which 44 from 18Q3.

46% to 27 in 19Q3.


The corresponding LED chip industry market quotation 19Q3 has basically bottomed out. The white light 300mil ^ 2 products in the LED chip are serious and have reached a low price of 70 yuan for a single chip. Most companies are no longer profitable at this price.Figure, market participants are in the position of losing cash costs, the industry welcomes the bottom of the game game.

Compound semiconductor ushers in customers’ turn-to-order opportunities.

We understand that H customers are expected to completely replace the RF front-end products at the terminals and base stations, replace the chips of major domestic PA design manufacturers, and outsource foundries from 2020-2021.

We have judged that among the domestic foundries and cooperatives of compound semiconductors, Wenlian and Sanan have the strongest foundry strength. H customers will have a large-scale replacement of products from A and S suppliers, and the trend of localization in the future.

Sanan Integration has been very comprehensive in the research and development and reserve of compound semiconductors. After the advantages of large-scale production lines began to appear, it is expected that orders will increase from 2020 to 2021.

We maintain our “Buy” rating.

Regardless of the impact of the non-public offering on the company’s operating income and profits, we maintain 2019 net profit14.

09 billion, due to the increase brought by Mini-LED, raised the company’s net profit forecast for 2020/2021 from 17.

7.5 billion / 22.

1.9 billion to 19.

56 billion / 27.

9.4 billion, taking into account the fact that the Group ‘s funds have been effectively reduced, new production has continued to be realized, and compound semiconductors have realized profits, giving them 40 times in 21 years, with a target market value of 111.7 billion, maintaining a “Buy” rating.

Risk reminder: The disorderly capital expenditure of chip manufacturers slows down the downstream recovery.