Yangjie Technology(SZ:300373) Guoxin Securities·2025-09-15 07:49Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][3][22] Core Views - The company plans to acquire 100% equity of Better Electronics for a cash payment of 2.218 billion RMB, with performance commitments set for the years 2025-2027, requiring a cumulative net profit of no less than 555 million RMB [4][5] - Better Electronics is expected to achieve revenues of 837 million RMB and a net profit of 148 million RMB in 2024, with a strong growth trajectory anticipated [10][12] - The acquisition is expected to enhance the product matrix and customer competitiveness of the company, benefiting from Better Electronics' established market presence and product offerings [5][14][18] Summary by Sections Acquisition Details - The acquisition will be executed in three phases, with the first phase involving a payment of 30% of the transfer price (665 million RMB) [6] - The performance commitment includes achieving a total net profit of 555 million RMB from 2025 to 2027, with a portion of the cash (716 million RMB) used to purchase the company's stock to ensure the core team's commitment [6][22] Financial Performance - Better Electronics has shown a compound annual growth rate (CAGR) of approximately 28% in revenue and 52% in net profit from 2020 to 2024, driven by increasing demand in the new energy and photovoltaic sectors [10][12] - The company's revenue for 2024 is projected at 837 million RMB, representing a year-on-year increase of 33%, while net profit is expected to grow by 40% to 148 million RMB [10][12] Market Position - Better Electronics is a leading player in the domestic power electronics protection component sector, with a global market share of 4.3% in the fuse market as of 2022 [7][10] - The company has a strong patent portfolio with 161 patents and has established a solid customer base in various industries, including home appliances and new energy [7][10] Strategic Outlook - The acquisition is expected to positively impact the company's product matrix, overseas expansion, and profitability, reinforcing its dual-circulation business model [5][22] - The company anticipates achieving net profits of 1.24 billion RMB, 1.45 billion RMB, and 1.70 billion RMB for the years 2025 to 2027, with corresponding price-to-earnings ratios of 29.6, 25.4, and 21.6 [22][25]