Institutions frequently ask about merger and acquisition plans. How popular is sapphire, the LED substrate material?

The semi-annual report comes to an end, and institutional research enthusiasm surged last week (August 25th to 29th). Research reports disclosed by about 200 companies show that the countdown to the release of iPhone 6 has entered, and various institutions are "passionately in love" with the sapphire business; in the disclosures of at least 50 companies, various institutions continue to test the company's M&A plans and market value appeals, and some questions have the feeling of boosting the company's M&A and reorganization. Hot sapphire With the release of iPhone 6 soon, institutions are scrambling to investigate related A-share companies, among which 5 companies have been explicitly asked about sapphire issues. At the same time, for some smartphone industry chain companies such as Zhuoyi Technology, institutions have also come to investigate the reality. On August 28, when answering the agency’s inquiry about sapphire field planning, Star Technology introduced in detail the ins and outs of sapphire, as well as costs and other issues. According to research reports, sapphire material has stronger resistance to chemical corrosion, hardness, and wear resistance than ordinary glass materials. The application of sapphire has been very hot for some time. The background is mainly based on the fact that Apple may use sapphire material as a mobile phone cover, and the resulting industry leading role and market stimulation effect. In terms of cost, although the cost of sapphire has dropped compared to the past, the material cost is still many times higher than that of ordinary glass. At the same time, due to the difficulty of processing, low processing efficiency, large loss of defects, etc., the application cost may be very high. Xingxing Technology disclosed that it has currently made technical reserves for sapphire processing, and has carried out trial production and sample delivery in different application fields. Currently, there are many versions of rumors about Apple's application of sapphire mobile phone covers, and the market is also in a wait-and-see situation. However, once the market starts, Star Technology will rely on its rich processing technology and end market resource advantages to start the business of sapphire products. On August 28, Crystal Optoelectronics received surveys from more than a dozen institutions including CITIC Securities. Because Crystal Optoelectronics has a sapphire project in its private placement plan, the institution asked the company how to plan its sapphire business. Crystal Optoelectronics stated that it has planned three subdivided projects including LED sapphire substrate, crystal growth, and optical applications in the private placement. Specifically, the LED sapphire substrate project's profit increased by more than 60% in the first half of 2014. Currently, product supply exceeds demand and business growth momentum is obvious; the company has initially mastered the 80-kg sapphire crystal growth technology in 2014 and plans to invest in 50 80-kg sapphire growth equipment, mainly to ensure the supply of raw materials for the company's sapphire business; as for the sapphire optical product project, the company has made corresponding technical reserves in the early stage and is waiting for the industrialization of the end market. Victory Precision introduced that among the company's coating products, one type is coated with an anti-reflective film on the surface of sapphire glass, which can significantly reduce the reflection of the sapphire surface and greatly increase the light transmittance of the sapphire surface. The product is under testing. In addition, institutions have not let go of A-share companies that produce sapphire growth furnaces. On August 26, Antai Technology revealed that in terms of fine refractory materials, the company produces supporting equipment and materials for sapphire growth furnaces. At present, tungsten and molybdenum tongs products lead the domestic market share. Sales this year are stable, but they still account for a small proportion of the company's overall operating income. On August 28, *ST Jinggong said that the sapphire furnace is being developed by the company's Jinggong Mechanical and Electrical Research Institute, which mainly uses the heat exchange method. The prototype has been trial-produced and is undergoing process testing. It is still a certain distance away from commercialization. Institutions frequently ask about merger and acquisition plans The explosive growth brought by mergers and acquisitions to the company's stock price and market value has made market investors even more excited. If the company's mergers and acquisitions can be predicted in advance, it will bring huge benefits to investors. The reporter noticed that at least a quarter of the companies mentioned institutional inquiries about mergers and acquisitions when disclosing their research content. On August 28, more than a dozen institutions including China Asset Management and Oriental Asset Management went to Zhejiang Fu Holdings, which is mainly engaged in hydropower business. After acquiring Mengxiang Qiangyin Culture Communication (Shanghai) Co., Ltd., which owns "The Voice of China", Zhefu Holdings' market attention has greatly increased. Regarding the question about whether it participates in the daily management of Mengxiang Qiangyin, Zhefu Holdings stated that after acquiring 40% of the shares of Mengxiang Qiangyin, it hired Wang Lei as the general manager of the company. At the same time, Wang Lei also served as the general manager of Mengxiang Qiangyin. Currently, the daily operations and management are handled by the Mengxiang Qiangyin team, and the company has high trust and confidence in its team. The institution asked Zhefu Holdings, "Will it make further equity investments in the cultural field? What are the subsequent acquisition plans for Mengxiang Qiangyin's 60% equity company?" Zhefu Holdings responded that it will not further invest in the cultural field at present and will first do a good job in Mengxiang Qiangyin. Six months after the issuance of Mengxiang Qiangyin's 2014 annual report, the company has the right to acquire no less than 11% of the equity. The specific acquisition plan is currently unclear. On August 28, the first question asked by Huatai Securities when investigating Rainbow Refinement was, "Some of the subsidiaries invested by Rainbow Refinement in the past few years were not in good condition, and these bad assets were divested last year. Does the company currently have any ideas for mergers and acquisitions?" Rainbow Refinement said that this depends on the actual development needs of the company. Currently, the company's core business involves new materials, new energy, pollution control and other fields. If there is an idea of ​​mergers and acquisitions, it may consider acquiring some companies that can enrich the company's product line. On August 27, when the institution investigated Boshi Shares, it directly asked in terms of industry expansion where the company had M&A needs. Boshi Co., Ltd. said that the company has started taking actions and made progress, such as environmental protection, 3D printing, smart freight transfer, etc. disclosed in the semi-annual report. There are many factors to consider in mergers and acquisitions, and the target company should not be separated from automation equipment. However, some companies bluntly stated that they “will not make acquisitions for the sake of mergers and acquisitions.” On August 25, Hanbell Precision was asked whether it would consider foreign mergers and acquisitions of air compressor products. The company stated that foreign manufacturers such as Ingersoll Rand and GHH are very good companies and have not yet considered mergers and acquisitions. On August 27, Silicon Bao Technology was also asked whether it had any merger and acquisition plans. The company stated that it hopes to develop through both endogenous and epitaxial growth methods, but will carefully select merger and acquisition targets and will not acquire for the sake of mergers and acquisitions.