A: Basic Information of the Company
Full Name of the Company: JCET Group Company Limited
Stock Code: 600584.SH
Stock Abbreviation: Changdian Technology
Region: Jiangsu Province
Industry: Semiconductor Industry
Establishment Date: 1972
Company Website: http://www.jcetglobal.com
Registered Address: No. 78, Changshan Road, Chengjiang Town, Jiangyin City
Total Share Capital: 177,955.3 million shares
Total Market Value: 71.487 billion yuan (as of October 21, 2024)
Business Scope: Research, development, production, and sales of semiconductors, electronic components, and specialized electronic and electrical devices. The company also provides comprehensive chip manufacturing one-stop services, including system integration, design simulation, technology development, product certification, wafer mid-test, wafer level mid-process packaging testing, system-level packaging testing, chip finished product testing, and direct shipping services to semiconductor customers around the world.
Company Profile: Established in 1972, Changdian Technology is a global leader in integrated circuit manufacturing and technical service provision, offering a full range of chip finished product manufacturing one-stop services. The company has eight production bases and two R&D centers in China, South Korea, and Singapore, with more than 20 business institutions worldwide, providing close technical cooperation and efficient industry chain support to customers globally.
B: Value Investment Analysis
Key Financial Indicators:
According to the latest financial report, Changdian Technology's operating income for the first three quarters of 2023 was 29.661 billion yuan, a decrease of 12.15% year-on-year; the net profit attributable to the shareholders of the listed company was 1.471 billion yuan, a decrease of 54.48% year-on-year; the net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses was 1.021 billion yuan, an increase of 36.73% year-on-year; the basic earnings per share were 0.82 yuan; a cash dividend of 1 yuan per 10 shares was proposed. For the period from January to June 2024, Changdian Technology achieved an operating income of 15.487 billion yuan, a year-on-year increase of 27.22%; the net profit attributable to the shareholders of the listed company was 619 million yuan, a year-on-year increase of 24.96% .
Company Investment Value:
As a global leader in integrated circuit packaging and testing, Changdian Technology possesses strong technical strength and extensive market influence. The company continues to invest in advanced packaging technologies, offering a wide range of services including 2.5/3D integrated technology, wafer-level packaging (WLP), system-in-package (SiP), and more. These technologies not only enhance chip performance but also meet market demands for miniaturization and high-performance chips.
Company Growth Potential:
Changdian Technology's growth potential stems from several aspects. Firstly, with the rapid development of emerging technologies such as 5G, IoT, and AI, the demand for semiconductors continues to expand, creating unprecedented opportunities for the packaging and testing industry. Secondly, the company's technological accumulation and market layout in advanced packaging will help seize market growth opportunities and achieve rapid business expansion. Furthermore, through mergers and acquisitions and strategic cooperation, the company continues to expand its business scope and market field, further enhancing its competitiveness and market position.
Industry Support Policies:
The Chinese government places great emphasis on the development of the semiconductor industry, enacting a series of policies to support innovation and development in the sector. These policies not only provide financial support for the semiconductor industry but also offer policy guarantees for its growth. As a leader in the semiconductor packaging and testing field, Changdian Technology will directly benefit from these policies, further consolidating and enhancing its leading position in the industry.
International Policy Risks:
The current international policy environment for the semiconductor industry is complex and changing, with rising trade protectionism posing uncertainties to the industry's development. Changdian Technology needs to closely monitor changes in international policies and adopt corresponding measures to mitigate potential risks.
A.Top's Investment Review:
Changdian Technology, as a global leader in integrated circuit packaging and testing, demonstrates significant investment value and growth potential with its leading position in advanced packaging technologies and extensive market influence. With the continuous growth of the global semiconductor market and the emergence of new technologies, the company's business scale and market share are expected to further increase, bringing considerable returns to investors.