China Great Wall (000066) incident review: Asset acquisition is expected to promote the landing of Feiteng equity to help Great Wall transform “Supermicro”
Event: Great Wall Xinan (100% holding), a wholly-owned subsidiary of Great Wall of China, purchased Great Wall Galaxy (a 40% -owned company) intangible assets, and transferred a total of 857 proprietary technology ownership and 35 patent use rights, for a total asset valuation valueFor 4155.
0.6 million yuan, which constitutes a connected transaction plan.
Views: 1. The acquisition reflects the deepening of cooperation between CEC and the National Defense University in autonomous and controllable businesses. In the future, it is expected to achieve deeper military-to-private business cooperation in more fields.
It can be seen from Tianyan’s investigation that Great Wall Galaxy is held by Xiangji Haidun, a wholly-owned subsidiary of Great Wall of China, 40%, and Hunan Provincial Institute of Industrial Technology Cooperative Innovation, representing the National University of Defense Technology, holds 30%; Tianjin Kirin is a CEC under CEC, and 40%Is the controlling shareholder. National University of Defense Technology authorized the trademarks of Kirin and Galaxy Kirin, intellectual property and other related intangible assets for use by Tianjin Kirin. Galaxy Kirin Operating System, also known as Kirin Operating System, originated from National University of Defense Technology and wasWith the support of the “863 Program” and the nuclear high-tech major project, it has developed into the operating system with the highest level of security in China; Tianjin Feiteng was established by the National Defense University’s high-performance processor research team, and CEC holds 35% through Huada Semiconductor and Zhenhua Electronics.Mr. Rui is also a legal person.
CEC and National University of Defense Technology have maintained good cooperation in the transformation of military-to-civilian technology into the autonomously controllable market. This technology transfer is from the Great Wall Galaxy, which is a military product that both parties face, to a wholly-owned subsidiary of Great Wall of China, which faces the autonomously controllable market.Great Wall Xin’an represents that many military-to-civilian technological transformations of the National Defense Science and Technology University have reached a new level. CEC will give full play to its own advantages and help military IT-related technologies representing our progressive development level to gain civilian market share.
Such cooperation is expected to deepen in the future, and the injection of Feiteng equity into the Great Wall of China is gradually accelerating.
2. Purchasing a series of patents to enhance competitiveness and help Great Wall Xinan to increase its share and gross margin. Great Wall Galaxy is jointly funded by Changsha Xiangji Haidun Technology Co., Ltd. and Hunan Provincial Institute of Industrial Technology Co-Innovation in accordance with China Electronics Strategic Planning.Emerging businesses.
Relying on the technological foundation and advantages of Hunan Institute of Industrial Technology Co-Innovation, the company aims to build a high-performance, highly reliable national production of independent and controllable computer products. It is geared to the needs of national political and military institutions and industries, and produces independently controllable military and civilian products.Computers, providing comprehensive information-based overall solutions, formed system solutions, military equipment, servers, personal computers four product 重庆耍耍网 lines, is committed to becoming the top service provider and leader of political and military information security construction, to undertake and successfully complete the Chinese People’s Liberation ArmyA number of major national strategic deployment projects such as a ministry, government agency, and scientific research institute provide a “comprehensive, innovative, safe, and credible” basic environment for internal information construction.
The purchase of the technology development achievements and patents of Great Wall Galaxy Feiteng series computer products by Great Wall Xinan is to accelerate the integration of autonomous and controllable business of information security within the system, respond to the market prospects, increase the competitiveness of the industry, and benefit the development of the company’s information 杭州桑拿网 security business.
This purchase of intangible assets is mainly to greatly enhance China Great Wall’s core technological competitiveness in Feiteng interconnect server products and high-tech business markets, to ensure product leadership in these areas, and to ensure that these products have more than half a year of technology leadership;The disorderly competition of products in these markets has greatly increased the market share and gross profit of sales of Principal.
3. Great Wall Galaxy patents centered on the application of the Feiteng chip, realizing the transformation of the Great Wall of China into a “Supermicro” of the Great Wall. 35 patents have replaced the server Yunteng 604,605, EF420, the laptop Zhixiang 302,303, and the all-in-one Wisdom 205,206.The desktop Zhiheng 104 and 106 products are mainly used in special-purpose markets, that is, special computers for units such as the party, government, army, and military industry group. The asset evaluation value is 4155.
0.6 million yuan.
Great Wall Galaxy’s intangible assets were transferred to Great Wall Xin’an. After the asset evaluation, the legal preparations for intellectual property rights were also completed. Great Wall Xin’an could successfully undertake the production and research and development of a complete and independently controlled mainframe based on the Feiteng chip.
After part of the technology income related to Feiteng chip ecology, the transfer of Feiteng equity in the future will be smooth.
If the Feiteng core is received first, and the patents related to the Feiteng really are not in hand, then there will be many intellectual property law disputes.
Many of these patents are focused on motherboard design and chassis design and testing, which can effectively enhance the research and development strength of China Great Wall in related fields. In the future, China Great Wall can be transformed into a Feiteng exclusive motherboard design manufacturer, focusing on doing a Feiteng ecology, and providing high performance for other OEMBoard or reference design, accelerate the application speed of Feiteng chips, and increase the market share of the PK ecosystem in autonomous and controllable fields.
Summary: Since the major asset reorganization in 2017, the inflection point of the company has emerged after digesting the adverse effects of military reform order replacement, especially the market share of autonomously controllable products around the “Feiteng chip + Kirin operating system” has continued to expand, and considerable orders have been added.
Through this asset transfer, the growth of Feiteng’s equity has accelerated.
It is expected that the company’s net profit attributable to its parent from 2019 to 2020 will be 12 respectively.
8.2 billion and 16.
45 billion, EPS is 0.
44 yuan and 0.
56 yuan, given a “strong recommendation” rating.
Risk warning: The autonomous and controllable business fails to meet expectations, and the progress of Feiteng chip allocation and transfer exceeds expectations.