Event: Recently, the company announced that it plans to purchase 100% of the shares of Tianjin Sigma Microelectronics Technology Co., Ltd. by issuing shares and paying cash, and at the same time raise matching funds.

Acquisition target: Sigma's core management team has more than 15 years of experience in the microelectronics industry. At present, it is mainly committed to the R&D, design and sales of digital-analog mixed integrated circuit chips such as photoelectric sensor chips, MCU chips and ASIC Design products, and has accumulated mature self-owned IP in ADC and DAC. The core of Sigma's core photoelectric sensor chip products is highly unified, and the unique PIXEL process has been successfully customized and developed around the photoelectric sensor + algorithm to create a low-cost device suitable for machine learning algorithms. Through self-developed data fusion preprocessing algorithms and differentiated designs for different scenarios, the company's main chip products have become the main optical engine for displacement measurement on the one hand, and have the scalability to be widely used in robots, phased array radar and other fields.

Purpose of acquisition: Narui Radar Co., Ltd. is an expert in civilian phased array radar, and plans to acquire the next generation of optoelectronic integrated phased array radar for the "veteran" of photoelectric sensors!

[We believe that the combination of photoelectric sensor and phased array radar is an important evolution trend in the future] 1) Strong detection ability: the combination of photoelectric detection and phased array radar detection can realize multi-dimensional detection of the target, and at the same time obtain the electromagnetic scattering characteristics and optical images and other information of the target, so as to improve the accuracy and reliability of target detection, especially for stealth targets, photoelectric detection can make up for the shortcomings of radar detection to a certain extent.

2) Excellent anti-jamming ability: photoelectric detection and radar detection work in different frequency bands, in the complex electromagnetic environment, when the radar is interfered with, the photoelectric detection system can still work normally, providing supplementary information for the system and enhancing the anti-jamming ability of the system.

3) High functional integration: the integrated design of radar and photoelectric detection system is realized, a variety of functions are integrated on the same platform, the volume, weight and power consumption of the equipment are reduced, and the integration and reliability of the system are improved.

Growth drivers: 1) Weather radar: In January 24, the official website of the Guangdong Development and Reform Commission announced the construction target of 69 X-band dual-polarization phased array weather radars in the second phase of Guangdong Province; 2) Water conservancy rain measurement radar: The Ministry of Water Resources issued the "National Water Network Construction Planning Outline" in May 23, which pointed out that it is necessary to accelerate the construction of "three lines of defense" for rainwater monitoring, including water conservancy rain measurement radar; 3) Civil aviation control radar: China's air traffic control radar, navigation, surveillance and other key equipment are basically monopolized by foreign manufacturers. At present, the company has signed observation and test cooperation agreements with many large domestic airports, and the products are in the market promotion stage; 4) Low-altitude surveillance radar: The company released the Ku-band dual-polarization active phased array radar in July 24, which broadened the application scenarios of the company's products in low-altitude economy and other fields. 5) Defense radar: The company has passed the quality management system certification of weapons and equipment in 22 years, and has reached a "strategic cooperation agreement on defense products" with Guangdong Military Industry Group to jointly promote the market application of fully polarized phased array radar in the field of defense.

At the same time, the company plans to acquire an upstream photoelectric sensor design company and begin to lay out a photoelectric integrated phased array radar with stronger integration and detection capabilities, which is expected to cut into more application scenarios, strengthen the company's leading edge in meteorology, water conservancy and other civilian fields, and is expected to become a radar platform enterprise in China.

It is estimated that the net profit attributable to the parent company in 24/25/26 will be 2.44/5.87/826 million yuan, and the current price will be 19.58/13.91x in 25/26, maintaining a "buy" rating!

Risk warning: the risk of technology iteration and innovation, the risk of high customer concentration, the risk that the acquisition progress is less than expected, the risk that the commercialization of application scenarios is less than expected, and the risk of supply chain.