HHCK(SH:688535) Huajin Securities·2024-11-12 10:27Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [1][2]. Core Views - The report highlights the full acquisition of Huawai Electronics by Huahai Chengke, aiming to create a leading enterprise in epoxy molding materials [1]. - The acquisition price range for Huawai Electronics is set between 1.4 billion to 1.6 billion CNY [1]. - Huawai Electronics is recognized as a key high-tech enterprise in China, specializing in semiconductor and integrated circuit packaging materials [1]. - The report anticipates that the acquisition will enhance the product competitiveness of Huahai Chengke and accelerate the replacement of foreign market shares [2]. Financial Performance and Projections - The projected revenues for Huahai Chengke from 2024 to 2026 are 351 million, 442 million, and 530 million CNY, with growth rates of 24.2%, 25.7%, and 20.0% respectively [2]. - The expected net profits for the same period are 46 million, 65 million, and 84 million CNY, with growth rates of 44.4%, 41.8%, and 29.6% respectively [2]. - The report indicates that the gross profit margin is expected to remain stable, with slight increases projected over the years [3]. Market Position and Competitive Landscape - Huawai Electronics ranks third globally in sales volume of epoxy molding materials and fourth in sales revenue, while leading in the domestic market [1]. - The report emphasizes the low domestic market penetration of epoxy molding materials, indicating significant growth potential for Huahai Chengke [2]. - The collaboration between Huahai Chengke and Huawai Electronics is expected to create synergies that enhance market competitiveness and resource integration [1][2].