JCET(SH:600584) Huaan Securities·2024-03-04 16:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company announced that its wholly-owned subsidiary plans to acquire 80% of the equity of Shengdi Semiconductor (Shanghai) Co., Ltd. for approximately 62.4 million USD, enhancing its storage testing layout [1] - Shengdi Semiconductor, a subsidiary of Western Digital, is a key player in the NAND Flash market with about 15% market share and has been a long-term partner of the company since 2003 [1] - The storage chip market is expected to recover, with a projected sales increase of 44.8% in 2024, reaching 129.768 billion USD, returning to 2022 levels [1] - The acquisition is anticipated to expand the company's market share in storage and computing electronics, improving its competitive advantage [1] Financial Summary - Revenue projections for 2023 to 2025 are 29.52 billion, 34.27 billion, and 38.83 billion CNY, respectively, with net profits of 1.54 billion, 2.57 billion, and 3.53 billion CNY [2][3] - The expected EPS for the same period is 0.86, 1.44, and 1.97 CNY, with corresponding P/E ratios of 35.6, 21.3, and 15.6 [2][3] - The company’s revenue for 2022 was 33.762 billion CNY, with a year-on-year growth of 10.7%, while the projected revenue for 2023 shows a decline of 12.6% [2][3] Market Position - The storage chip segment accounts for approximately 28% of the semiconductor market, making it the second-largest sub-sector [1] - The company’s downstream applications primarily focus on communication electronics, consumer electronics, and computing electronics [1]