Outside the number, outside the number, the first 100-yuan stock in 2022 will be listed on the Science and Technology Innovation Board tomorrow!
Since the beginning of this year, 11 new stocks have landed on the A-share market, of which Tianyue Advanced-U, which was listed on January 12, temporarily led the way with an issue price of 82.79 yuan per share. Tomorrow's listing of Aojie Technology Co., Ltd. (hereinafter referred to as "Aojie Technology") is about to break this situation, the company's issue price of 164.54 yuan / share, corresponding to a market value of about 68.827 billion yuan, the marketing ratio of 63.67 times, higher than the 2020 average of comparable companies 59.26 times.
Previously, "Hemai Shares", which was famous for its high pricing problems, not only did not break down after listing, but closed up 30% on the first day, which seems to have summoned up the courage of Aojie Technology, looking at more than 4,000 listed companies in A shares, and the issuance price of 164.54 yuan per share of Aojie Technology can rank 12th.
As everyone knows, the initial inquiry range of Aojie Technology is very disparate, with a total of 380 offline investors managing 9367 placement objects participating in the quotation, and the quotation range is 12.59 yuan / share - 299.50 yuan / share. So, will Aojie Technology repeat the scene of Hemai shares, or is it contrary to it?
1
Alibaba Network is the largest shareholder
Founded in 2015, Aojie Technology's founder and current CEO Dai Baojia is not small.
Prior to founding Aojie Technology, Dai Baojia was the general manager of UMAX Technology in the United States, and then founded USI, a silicon valley linear power amplifier developer. It became famous in 2004 by founding RDA, a leading manufacturer of wireless system-on-chips and RF chips, which was launched on the NASDAQ in 2010.
In 2014, Tsinghua Unigroup completed the acquisition of RDA for $907 million and integrated Spreadtrum Communications to form the current Unigroup Exhibition Sharp. After this, the Dai Bao family also left the RDA they founded and started a new stove.
Based on its previous experience, Aojie Technology is positioned as a platform-based chip enterprise of wireless communication and ultra-large-scale chips. After its establishment, it successively acquired South Korea's Alphean and Jiangsu Zhiduoxin, and acquired Marvell's mobile communication business in 2017 to achieve the accumulation of 2G-4G technology. At present, it has the R&D and design strength of full-scale cellular baseband chips and multi-protocol non-cellular IoT chips, and has the ability to provide ultra-large-scale high-speed SoC chip customization and semiconductor IP licensing services.
With technical support, Aojie Technology quickly attracted Ali Network, Shenzhen Venture Capital, Xiaomi Yangtze River, Hillhouse Fuheng, and China Internet Investment to intervene successively. As of the IPO, the founder Dai Baojia only directly held 9.36% of the company's shares, plus controlled a total of 24.36% of the company's voting rights through employee platforms such as Ningbo Jiexin and GreatASR1 Limited, as its actual controller. Alibaba Network holds 17.15% of the shares, making it the largest shareholder of the company.
In this listing, the company issued a final strategic placement of about 6.2837 million shares, accounting for 15.02% of the number of shares issued, attracting well-known investors such as the second phase of the National Integrated Circuit Industry Investment Fund, Midea Holdings, Gigabit Innovation, Wingtech Technology, OPPO and so on.
2 Profitability has not yet been achieved
In terms of sub-fields, the first generation of baseband communication chips sold by Aojie Technology in 2017 was undertaken from Marvell, and in the next few years, after continuous iteration of product technology, the current cellular baseband chip products have covered GSM/GPRS/EDGE (2G), CDMA/WCDMA/TD-SCDMA (3G), FDD-LTE/TDD-LTE (4G), and 5G chip products are still in the stage of back-to-chip debugging.
SoC chip is different from baseband chip, source: CSDN
In the field of non-cellular mobile communications, the company has a variety of high-performance non-cellular IoT chips based on WiFi, LoRa, Bluetooth technology, and also global positioning navigation chips based on Beidou navigation (BDS)/GPS/Glonass/Galileo technology.
In the field of ultra-large-scale high-speed SoC chip design and semiconductor IP licensing services, it serves many companies in different application fields such as Denglin Technology, Moffett, OPPO, xiaomi and so on.
The company's products and services are used in the field of application, source: prospectus
During the reporting period, Aojie Technology's chip products have achieved large-scale sales, with the cumulative sales of cellular baseband chip products exceeding 80 million sets, and the sales of non-cellular IoT chip products exceeding 40 million.
From the perspective of revenue structure, chip products contribute the absolute majority of the company's revenue, accounting for more than 80%, of which cellular communication chips account for the highest proportion, reaching 70%; followed by chip customization services, accounting for about 10% of revenue; and semiconductor IP licensing service revenue is small.
Thanks to the growth of chip sales, the revenue scale of Aojie Technology has grown rapidly in recent years, from 115 million yuan in 2018 to 1.081 billion yuan in 2020, with a compound annual growth rate of 206.07%. However, due to the continuous loss of the company due to the large amount of R & D investment, and the loss margin continues to increase, from 2018 to 2020, the loss was 537 million yuan, 584 million yuan and 2.337 billion yuan, respectively, and the corresponding net cash flow from operating activities was also continuously negative.
From the current point of view, the profitability and hematopoietic ability of Aojie Technology need to be marked with a question mark.
3
The status of giants is difficult to shake
What is the position of Aojie Technology in the industry?
In terms of its first major business area, at the current point in time, benefiting from the switch from 4G to the 5G era, and the impact of chip shortage brought about by the epidemic, the global cellular baseband chip has achieved counter-trend growth. According to Strategy Analytics, the global cellular baseband market reached $26.8 billion in 2020, up 25% year-on-year. Among them, 5G chip shipments increased by more than 900%.
From the perspective of the competitive landscape, the major players in the global market include Qualcomm, MediaTek, HiSilicon, Samsung, Intel and so on. Among them, Qualcomm benefited from the impact of Apple's purchase of baseband chips, ranking first in the world, with sales of $11.5 billion in 2020, accounting for 43% of the market, rising to 53% in 2021Q1.
Although the domestic manufacturer HiSilicon has gradually broken the pattern of the international chip manufacturers dominating the market in recent years, ranking second in the market share in 2020, reaching 18%, but affected by trade frictions, the company's shipments have declined to a certain extent, and by 2021Q1 has been squeezed out of the top three in the world.
Players such as MediaTek and Samsung grabbed the market share of HiSilicon, and the market share in 2021Q1 reached 25% and 10% respectively.
Based on the sales revenue of 1.081 billion yuan in 2020, the company's market share is less than 0.1%.
It is worth mentioning that in recent years, Aojie Technology has adopted the strategy of high-priced chip products, that is, reducing the price of chip products to gain market share.
Despite the increase in product sales, this has led to a year-on-year decline in the gross profit margin of the company's chip products, from 27.15% in 2018 to 16.23% in the first half of 2021, far less than the gross profit margin of 32% of the chip customization business and the gross profit margin of 100% of the semiconductor IP licensing service.
Obviously, the company is facing an embarrassing dilemma in the market competition.
4
brief summary
The chip industry has always been "stuck neck", whether it is the design link or the production and manufacturing link, it is subject to overseas giants. In the context of independent control, China has high hopes for the chip industry, and capital tilts to try to find the next company that can carry the banner. As a domestic wireless communication chip provider with independent research and development capabilities, Aojie Technology is now about to land on the Science and Technology Innovation Board with a market value of 70 billion yuan, which has attracted much attention from all walks of life in the market.
But it's worth noting that companies are still under a lot of pressure. On the one hand, the status of industry giants is difficult to shake; on the other hand, its 5G chip products are still in the stage of back-to-chip debugging, and lack a certain first-mover advantage and customer base in the 5G era, which is not a small pressure for the company to lag behind in technology. In addition, the company has not yet achieved profitability, and the hematopoietic capacity is insufficient, or it is difficult to support the market value of 70 billion.
Whether the market buys it or not, whether it is a mule or a horse, pull it out and slip it out.