HMT(SH:603306) Ju Chao Zi Xun·2025-09-29 13:16Core Viewpoint - Huamao Technology has announced a strategic acquisition plan to purchase the remaining 57.84% equity of Fuchuang Youyue for a consideration of 1.504 billion yuan, demonstrating its commitment to the AI computing power sector amid a projected global optical module market growth to over 37 billion USD by 2029 [1][3]. Group 1: Transaction Structure - The acquisition payment structure includes 1.022 billion yuan (68%) in shares and 481 million yuan (32%) in cash, showcasing a professional and strategic design that aligns interests between Huamao Technology and Fuchuang Youyue's original shareholders [2]. - The share issuance is priced at 29.80 yuan per share, with a 12-month lock-up period to prevent short-term cashing out, ensuring market stability [2]. - The cash component addresses liquidity needs for financial investors looking to exit, while a financing plan aims to raise up to 951 million yuan from the controlling shareholder to support capacity expansion and operational needs [2]. Group 2: Industry Growth Potential - The global optical module market is expected to grow at a compound annual growth rate (CAGR) of 22% from 2024 to 2029, driven by surging AI computing power demands, with 800G modules currently leading the market [3]. - Fuchuang Youyue's proactive positioning in the optical module sector, including a projected shipment of over 3.5 million 800G modules in 2024, places it at the forefront of industry growth [3]. - The geographical diversification of the optical module market favors Southeast Asia, where Fuchuang Youyue's Malaysian production base aligns with global infrastructure trends [3]. Group 3: Complementary Markets - The high-speed copper cable connector market in China is projected to reach 8.759 billion yuan in 2024 and exceed 10 billion yuan in 2025, driven by the construction of 5G base stations and data centers [4]. - Fuchuang Youyue's involvement in high-speed copper cable connectors complements its optical module business, providing a comprehensive data transmission solution [4]. - Ongoing investments in R&D for emerging technologies will position Fuchuang Youyue favorably in the next generation of industry competition [4]. Group 4: Capacity Expansion and Financial Viability - The acquisition plan includes expanding the Malaysian production base with four new production lines, targeting an annual capacity of 2.659 million 1.6T optical module PCBA and 500,000 high-speed copper connectors [5]. - The Shenzhen factory expansion will focus on high-end product capacity, with projected annual outputs of 1 million 1.6T modules, 2.8 million 800G modules, and 1.957 million 400G modules [5]. - Financial analysis indicates a post-tax internal rate of return of 28.97% for the Malaysian project and 20.54% for the Shenzhen project, with payback periods of 5.85 years and 6.19 years, respectively [5]. Group 5: Valuation and Market Positioning - The transaction valuation reflects a balance of professionalism and market dynamics, with a total valuation of 2.6 billion yuan corresponding to an average annual net profit of 260 million yuan from 2025 to 2027, resulting in a price-to-earnings ratio of 10 times [7]. - The step-by-step acquisition strategy allows for cost optimization, with a total payment of 1.899 billion yuan for 100% equity corresponding to a comprehensive P/E ratio of only 7.30 times, indicating a favorable valuation for investors [7]. Group 6: Strategic Transformation - This acquisition signifies Huamao Technology's transition from traditional manufacturing to a new productive force, leveraging its expertise in precision manufacturing to enter the high-growth AI computing power sector [8]. - The strategic design of the transaction, reasonable valuation, and clear capacity planning position Huamao Technology as a key player in the AI infrastructure landscape, with increasing demand for optical modules and high-speed connectors [8].