According to "Financial Information", Taiwan Specialty, a semi-conductor specialty supplier under the Sino-US Crystal Group, announced on June 27 that Hongyi Technology, which will purchase dry-type etching process equipment cleaning servi...
According to "Financial Information", Taiwan Specialty, a semi-conductor specialty supplier under the Sino-US Crystal Group, announced on June 27 that Hongyi Technology, which will purchase dry-type etching process equipment cleaning services for nearly 3 billion yuan, has obtained 65.22% of the shares, and the expected delivery date is set to August 5. Taiwan Special Chemical Chairman Xu Xiulan held a special online briefing meeting on June 30 to explain the effectiveness of the merger case. After Taiwan Specialty acquired Hongsheng Technology, its revenue and profit performance will increase significantly, and it is expected to be 70% and 80% respectively.
Xu Xiulan admitted that from the perspective of the development blueprint, Taiwan Specialization depends on its own organic growth, which is more congenital in nature due to the equity of 1.476 billion yuan. EPS is showing a weak point. If you do not increase your equity, you can pursue rapid growth, which means choosing good targets to purchase.
As soon as Xu Xiulan opened the scene, the first problem that the outside world cares most about in the past three days is that Hongjie Technology refers to another Sino-Meijing Group that makes arsenic electrode? The two companies only have the same pronunciation, but different companies, Hongyu Technology has not made an IPO. Although it has not entered the capital market, it is a very well-known company in the semiconductor industry.
The second problem is, does Hongzhi Technology make money? What is the effect of the merger? It is not difficult to find that this is a money-making company when it is purchased from Taiwan Specialty at a high price of 300 yuan per share. Hongyu Technology's actual capital revenue is RMB 15,300, with a net value of RMB 60.88 per share. The capital in 2024 was RMB 1.485 billion, which is about 1.7 times Taiwan Specialization. If we look at business interests, about 80% of Taiwan Specialization will be converted to about 290 billion yuan.
It is easy to see that after Taiwan Specialization successfully purchased Hongsheng Technology, its revenue and profits will increase immediately. Xu Xiulan supplemented it. Although Hongyan Technology's gross profit margin is slightly lower than Taiwan Specialization, the volume has increased, and the overall revenue, profit, EPS, etc. will increase significantly.
Observing the development of semiconductor industry market, Chen Zhenqian, vice chairman of Taiwan Special Chemical, said that the real growth potential is in advanced processes, but the advanced processes have limited customers. How to find more growth machines is to increase business and service projects. The long-term development of Taiwan's specialty chemicals includes sedimentation, etching and cleaning, and Hongyu Technology can supplement the cleaning.
According to "Financial Information", Hongye Technology's competitive advantages are technical capabilities and nearby services, and locks dry-type etching process equipment cleaning business. 70% of the acquisitions are crystalline foundry manufacturers, including NTEM, Joint Power, Micron, etc., and have been selected as A-level cooperative manufacturers for many years. Another 30% of the production is obtained from the original semiconductor equipment factory, and all five major dry-type engraving equipment suppliers can serve.
Research institutions estimate that the market size of semiconductor equipment cleaning is about US$1.5 billion, with an average annual growth rate of about 7%. Market competitors include Rongchuang Technology, Taiwan Mitsubishi Chemistry, Deyuan, Kezhi, United and Kunming, but no company has a single market share of more than 20%.
This is why Xu Xiulan is optimistic about the potential for development. She also believes that the customers and industries of Taiwan Specialty and Hongye Technology Services are mainly semiconductor industries, and it is expected that the two-party business can produce mutually complementary effects.
Chen Zhenqian said that it took a lot of time to discuss how to retain the core team during the merger. Because Hongyi Technology is mainly service, Taiwan Specialization focuses on products. Taiwan Specialization aims to establish an excellent team. Basically, the two companies will be independent, and only auditing, ESG, etc. will be integrated.
Taiwan Tehua purchased funds for about 3 billion yuan this time, half of which was paid in cash and the other half was borrowed by the bank. After Taiwan Specialty successfully entered the cabinet last year, it successfully raised 1.229 billion yuan in funds. Chen Zhenqian emphasized that even if the bank loan amount is expanded, the debt ratio is still very healthy.
Finally, Xu Xiulan said that the merger and purchase effect will be made first, and then we will find a good bid for Taiwan Specialization to continue to grow.
Extended reading: Taiwan Special Chemical spent 3 billion yuan to acquire 65.22% of Hongyi Technology's shares and entered the semiconductor equipment service Global Crystal New Texas Factory is launched, with another $4 billion to expand local supply chains Zhongmei Jing invested 3 billion yuan in Hongyuan with 65.22% equity, and entered the semiconductor equipment cleaning and regeneration market
