Great Wall of China (000066): Tianjin Feiteng’s surpassed-expected autonomous and controllable hardware platform is further strengthened
Event: China Electronics, the company’s controlling shareholder and actual controller, intends to hold Tianjin Feiteng 21 held by China Zhenhua.
46% of the shares were transferred to the company by agreement, and Tianjin Feiteng 13 which Huada Semiconductor will hold will continue to be promoted.
54% equity was transferred to Great Wall of China by agreement.
Investment Highlights Tianjin Feiteng’s equity transfer progress and proportion are beyond expectations. The company passed Tianjin Feiteng 13 held by Huada Semiconductor on March 17, 2017.
With the agreement of 54% equity transfer, the counterparty of the part of Tianjin Feiteng shares to be acquired this time will be expanded from the original Huada Semiconductor to Huada Semiconductor and China Zhenhua, and the proposed acquisition ratio will also be from the original 13.
54% increased to 35.
Absolutely whether the progress of the transfer or the shareholding ratio exceeded market expectations.
Both Tianjin Feiteng and Great Wall of China are important components of the independent and controllable business ecological chain of China Electronics Group. The transfer is also to further the professional integration of the independent and controllable business. The focus of China Great Wall as the group’s hardware platform is more prominent, andIt will enhance the company’s overall strength in the construction of an autonomous and controllable ecosystem.
The performance and ecology of Tianjin Feiteng chips meet the industrialization conditions, and the business has also entered a profit period. Among the existing products compatible with the ARMv8 instruction set, Tianjin Feiteng FT-2000 + / 64 has single-core computing capabilities, single-chip parallel performance, andThe chip cache’s consistency scale, access volume and storage indicators are at the international advanced level, which can replace high-performance, high-throughput server areas, such as large-scale business hosts and high-performance server systems that require high processing and throughput capabilities.And large internet data centers.
At present, domestic operating systems and domestic software products have also completed the full adaptation work on the FT-2000 series 杭州桑拿网 chip platform.
According to the Air Force Huada Semiconductor property rights transfer agreement, Tianjin Feiteng’s 2016 revenue was 1945.
790,000 yuan, net profit is 22.
270,000 yuan, has achieved a slight profit, we expect that Tianjin Feiteng has entered a stable profit period.
The overall profit level of the company is expected to further increase: Tianjin Feiteng, as a necessary chip supplier for the company’s independent controllable business, will increase the company’s profitability in terms of independent controllable business after the completion of the distribution and transfer.
At present, the company has made major breakthroughs in the e-government and civilian products markets with the “PK” computer system and domestic cloud solutions of Feiteng CPU + Kirin OS. It has been able to meet the initial office 杭州桑拿网 requirements and has also adapted to many internal Internet cloud computing platforms.
As the most mature autonomous controllable system in the market, it will definitely take the lead in benefiting from this round of domestic volume.
Earnings forecast and investment grade: EPS is expected to be 0 in 2019-2021.
36 yuan / 0.
43 yuan / 0.
51 yuan, currently the corresponding PE is 27/23/19 times.
Autonomous and controllable is expected to begin large-scale volume next year. The company’s PK system, as the most comprehensive domestic ecological system in the country, will continue to benefit, maintaining a “Buy” rating with a target price of 13.
Risk warning: the progress of reorganization and integration exceeds expectations; autonomous and controllable advancement is less than expected