TOREAD(300005)2023-06-07 16:14Group 1: Acquisition Overview - The company acquired 72.79% of G2 Touch for 27.2 million and 9.4 million and $1.6 million [3] - The acquisition price corresponds to a PE ratio of 4x for 2021 and 23x for 2022, which is below the industry average [3] Group 2: Market Context and Product Development - The global PC market saw a 16.4% decline in shipments in 2022, but a recovery is expected with a projected 20% increase in Q2 2023 shipments [3][4] - G2 Touch plans to expand into the automotive sector, with demo products already shipped [3] - The company utilizes ON-CELL technology, which reduces power consumption by approximately 25% compared to other technologies [4] Group 3: Business Strategy - The company follows a dual business strategy of "Outdoor Business + Chip Business" to enhance overall revenue [4] - A three-step strategy for display driver chips includes establishing a foundation, scaling up, and exploring new markets [4] - G2 Touch aims to integrate advanced overseas technologies into the domestic market to enhance its global development potential [4] Group 4: Product Offerings and Competitive Advantages - G2 Touch's product line includes LCD touch ICs, OLED touch ICs, and battery protection ICs, focusing on major brands like Dell and HP [5] - The company holds 129 patents and has 37 pending applications, showcasing its technological advantage [5] - G2 Touch has supplied millions of touch ICs to major clients like BOE from 2016 to 2022 [5] Group 5: Future Outlook - The company anticipates a recovery in the notebook panel market, with Q1 2023 shipments reaching 38.7 million units and a projected increase in Q2 [6] - G2 Touch aims to become a key component of the company's chip business, focusing on product line expansion and market share growth [6] - The Mini LED driver market is expected to grow significantly, with the company developing various active driver ICs [8]