07/05/2020

Wingtech (600745): Sufficient capital surplus
Wingtech’s business is developing rapidly, and Anshi Semiconductor’s business is stable.In 2018, the listed company Wingtech vigorously adjusted its customer structure, increased the proportion of material procurement, the production ratio of mobile phones, and the continuous advancement of R & D projects, and its operating cash flow continued to increase.The power devices produced by the acquisition of the target Anshi Semiconductor are used in the fields of automotive, industrial control and consumer electronics. They are mandatory consumer products with long-term stable cash flow. Domestic financing channels are unblocked.Domestic borrowing funds mainly come from Wentianxia borrowings6.US $ 4.5 billion, Industrial Bank borrowed US $ 3.5 billion, and Yunnan Provincial Urban Investment Bank borrowed10.1.5 billion.Wen Tianxia and Yunnan Chengtou’s borrowing rate is around 4%, while Industrial Bank’s borrowing rate is relatively high at around 7%.According to calculations, we predict that the total amount of Wyntech’s replacement principal and refund repayments in 2019, 2020 and 2021 will be 5, respectively.3.8 billion, 8.810,000 yuan and 8.6.3 billion. The overseas borrowing quota is full.Foreign countries are expected to start after the listed companies get formal approval.According to the announcement, the overseas part is prepared to borrow US $ 5.6 billion, and the amount that Ace Semiconductor’s overseas banks can raise is expected to be around US $ 2 billion, which fully covers the amount exceeded overseas.Based on calculations, we predict that the total amount of the principal and refund of overseas loans of Anshi Group in 2019, 2020 and 2021 will be 0 respectively.6.4 billion, 8.1.1 billion and 7.9.1 billion. Wingtech’s cash flow continued to grow.The funds for repayment of the principal and interest of domestic borrowings are mainly derived from the surplus funds generated by the normal operation, investment and fund-raising activities of listed companies related to Wingtech.Expected 2019?In 2021, the company will operate normally, and the surplus from investment and fund raising activities will be 29.310,000 yuan, 42.14 ppm and 57.US $ 9.1 billion, which can completely cover the principal 北京夜网 and index on this territory. Anshi Semiconductor’s cash flow has remained stable for a long time.The funds for repayment of the principal and interest of domestic borrowings are mainly derived from the surplus funds generated by the normal operation, investment and fund-raising activities of listed companies related to Wingtech.It is expected that from 2019 to 2021, Anshi Group will operate normally, and the surplus of funds generated from investment and fundraising will be 18 respectively.3.4 billion, 28.7 ppm and 31.US $ 8.9 billion, which can fully cover the principal and index sum of this overseas loan. Profit forecast and rating.Without considering the acquisition, we expect the company’s EPS to be 1 in 2019-2021.05, 1.34, 1.84 yuan.Considering that after the company’s acquisition of Anshi Semiconductor, Wingtech and 北京男士会所 Anshi Semiconductor have a high degree of customer relevance in 5G technology, consumer electronics, and automotive semiconductors, with significant synergies. Maintain a “Buy” rating. Risk reminder: The risk of 5G mobile terminal product development is less than expected; the risk of the acquisition progress is not up to expectations; the actual change of funds and the report’s predicted changes in capital flows or different risks.