St Datang: Proposed additional financing 1.2 billion

Sina tip: This article belongs to a stock comment column, only for securities consultants on the relevant stocks or plates of personal views and analysis, and informal news reports, Sina does not guarantee its authenticity and objectivity, investors operate on the basis of risk.　　For accurate information about the unit, please refer to the Bulletin of the Shanghai and Shenzhen Stock Exchange.　　Pacific Securities Yi Yingyi Event: St Datang yesterday announced that the company plans to 10 institutional investors and natural persons to issue 140 million shares, priced about 8.70 yuan per share, the total raise capital of about 1.2 billion yuan, of which the holding shareholder of the Institute of Telecommunications Science and technology subscription shares not less than the total number of shares issued 10%. Comment on: St Datang urgently needed funds to strengthen support for Datang microelectronics in new products and fields--3g Telecom smart card and bank EMV card research and development and industrialization, in order to upgrade the smart card field of independent innovation, consolidate in the field of telecommunications smart card technology leader and market leadership position,　　and to achieve in the non-telecommunications industry applications in the field of extension. In the specific fund-raising investment, St Datang intends to invest 172 million yuan in TD-SCDMA data Fusion product development and industrialization project; another 96.01 million yuan will be invested in the new 3G Smart card research and development and industrialization projects, in addition, will cost 192 million yuan to build the bank EMV card research and development and industrialization project, it also plans to use the above 797 million yuan to repay bank loans,　　To get rid of the unreasonable capital structure, high debt ratio situation.　　We believe that with the expansion of the domestic 3G market demand, if St Datang can seize the opportunity, the 3G Telecom smart card bigger and stronger, the next few years TD-SCDMA data fusion products will undoubtedly become Datang and a new profit growth point. We are still optimistic about the future development of Datang, maintain the "overweight" rating, the target price of 14 yuan.