JCET(SH:600584)2024-03-28 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The actual controller of the company will change to China Resources, with a significant share transfer involving major shareholders [2] - The company is acquiring 80% of Shengdi Semiconductor from Western Digital for approximately $624 million (around 4.5 billion RMB) to enhance its storage chip packaging and testing operations [2] - There is a slight recovery in customer demand expected in the second half of 2023, with Q4 orders returning to the same level as the previous year [2] - The profit forecast for 2023-2025 has been adjusted downwards, but the "Buy" rating is maintained due to favorable comparisons with peers in the packaging and testing industry [2] Summary by Sections Shareholder Changes - Major shareholders, including the Big Fund and Chip Electric Semiconductor, are transferring shares to Panshi Hong Kong, resulting in a new controlling structure with China Resources as the actual controller [2] Acquisition Details - The company plans to acquire Shengdi Semiconductor, which reported revenues of 3.498 billion in 2022 and 1.605 billion in the first half of 2023, with net profits of 357 million and 221 million respectively [2] Financial Performance - The company expects a net profit of 1.322 to 1.616 billion RMB for 2023, reflecting a year-on-year decline of 49.99% to 59.08% due to weak global demand [2] - The adjusted net profit forecasts for 2023-2025 are 1.572 billion, 2.312 billion, and 3.226 billion RMB respectively, with corresponding PE ratios of 33, 23, and 16 [2][4] Market Position - The company's current share price is 29.11 RMB, with a market capitalization of approximately 52.073 billion RMB [5] - The company’s financial metrics indicate a projected revenue of 29.588 billion RMB for 2023, with a gross margin of 13.7% [4][9]