Weir shares (603501) first coverage report: design and distribution go hand in hand, the world’s third largest CIS leader manufacturers set sail again

Weir shares (603501) first coverage report: design and distribution go hand in hand, the world’s third 合肥夜网 largest CIS leader manufacturers set sail again
After the merger and acquisition was completed, the company cut into the CIS market and covered it for the first time. The company was given a “highly recommended” rating for its main semiconductor design and distribution business. The acquisition of Beijing Haowei and Spike was successful, and it officially entered the emerging CIS market.We believe that in the context of the accelerated localization of semiconductor core devices, Beijing Haowei, as the third largest CIS manufacturer in the world, will fully benefit from the wave of development of the optical industry.In addition, the company’s new business and internal business have integrated synergy, optimistic about the company’s future development prospects.Taking into account the consolidation of new businesses, the company’s 西安耍耍网 2019-2021 revenue is expected to be 143.1/193.5/244.10,000 yuan, the net profit attributable to the mother is 8 respectively.46/22.42/30.95 ppm, the current sustainable corresponding PE is estimated to be 101/38/28 times in 2019-2021.Covered for the first time and given a “strong recommendation” rating. Multi-factors drive the explosive growth of the market. The CIS industry has a large market space. CIS is one of the core components of optical modules, with the highest cost accounting for 52% of the overall cost of camera modules.The CIS downstream industry is widely used, and market demand continues to explode. According to IC Insights data, the CIS countries in 2018 were $ 14.2 billion, and the compound growth in 2013-2018 was 13.9%, it is expected that the global CIS is expected to reach 21.5 billion US dollars by 2023, and the composite intensity is 8 in 2018-2023.7%. CIS下游应用主要有手机,消费,计算机,安防,汽车,工业等领域,其中,手机是CIS最大终端用户市场,2018年手机占其中比例为61%,达86亿美元,预计到2023年 年手机CIS will reach 9.8 billion US dollars, accounting for about 45% of the total market, the composite synthesis is 2.6%.We believe that automotive, security, and industrial applications will be the main driving force for the growth of the CIS market in the next 5 years. It is expected that by 2023, automotive, security, and industrial CIS will be $ 32/20 / 1.8 billion, respectively, and composite materials for 5 years will be 29.7% / 19.5% / 16.1%. Design and distribution go hand in hand, and the world’s third largest CIS leader starts again. Howell Technology and Spike’s main business are converted to CIS R & D and sales. After the merger and acquisition is completed, IC design becomes the company’s core business.Howell Technology is the third largest CIS supplier in the world after Sony and Samsung, with the world’s leading technology level.Through reorganization, the company achieved vertical full coverage of high, middle and low-end products in the CIS field: Howway Technology is responsible for the research and development of high-end CIS, mass production, and product definition and expansion in emerging markets.Mass production.We believe that the synergy between the company and Haowei Technology and Spike is obvious. In addition, the CIS development prospects are broad, and the world’s third largest CIS manufacturer will set sail again. Risk reminders: Localization progress is less than expected; downstream development of CIS is less than expected; increased competition risks.