According to the information disclosed by the Asset Management Association of China, "Hubble Technology Venture Capital Co., Ltd." (hereinafter referred to as Hubble Investment) completed the registration of private fund managers on January 14 this year, and the types of institutions are private equity and venture capital fund managers. The company was founded on April 23, 2019, with a newly registered capital of up to 3 billion yuan, and its registration and office are in Futian District, Shenzhen.
Hubble Investment is a capital operation company under Huawei, before that, Hubble Investment has invested in more than 30 companies, including a number of A-share listed companies, and the investment direction is mainly based on the chip industry chain.
Incomplete statistics, Hubble Investment has five companies listed on the IPO, including Tianyue Advanced, Siripu, Dongxin Shares, Canqin Technology, juguang technology.
Tianyue Advanced is a silicon carbide chip, Siripu is a base station chip, Dongxin is doing small and medium-sized memory chips, Canqin Technology is engaged in filters, Torch Technology is the production of lidar...
These companies have one thing in common: they are all suppliers to Huawei.
The Huawei core-making plan that has been rumored to be landed in the form of capital?
Although Huawei is not listed, it has incubated a large number of listed companies. After assuming many notorieties, we found from the financial data of listed companies that in addition to the very competitive mobile phone industry, Huawei's suppliers, especially base stations and other related fields, have a fairly high gross profit margin.
Xingkong Jun once read an interview with Ren Zhengfei, saying that Huawei usually leaves 40% of the gross profit margin for upstream partners to make the industrial chain develop healthily.
First, how advanced Tianyue is
In January 2022, Tianyue Advanced was listed on the Science and Technology Innovation Board. The company is a leading manufacturer of wide bandgap semiconductor substrate materials in China, and its core business is the research and development and production of silicon carbide substrates.
Silicon carbide is also known as the third generation of semiconductor materials (the third generation of semiconductor materials include silicon carbide SiC, gallium nitride GaN, zinc oxide ZnO, diamond, aluminum nitride AlN, etc.), but in fact this definition has a certain degree of confusion. Because the third generation, the first generation, and the second generation do not have an inheritance and substitution relationship.
The three have different divisions of labor in terms of application scope, and the third generation of semiconductors is mainly suitable for semiconductor lighting, power devices, microwave devices and laser detectors.
From the perspective of industry applications, it is widely used in the fields of 5G, UHV, intercity transportation, and new energy.
According to the prospectus, in 2019 and 2020, the company has ranked among the top three in the world in the semi-insulated silicon carbide substrate market.
But Starry Sky Jun is suspicious of this figure, because the company's annual sales in 2020 are only 420 million yuan, equivalent to about 70 million US dollars, 70 million knives can become the world's third field, is there moisture?
Judging from the expression of technological advancement in the prospectus, the company's innovative technology has won the first prize of the 2019 National Science and Technology Progress Award, in the case of technology blockade, to achieve independent control, and led the "6-inch SiC substrate preparation and homogeneous epitaxy technology research" project in the theme project of "Key Technology of High-quality Third-Generation Semiconductor Materials" in the National High-tech Research and Development Program (863 Plan).
This means that the company's technical strength is real and reliable, and the main reason for the low sales is that the market space in this segment is still very small.
Second, large customer dependence
The company's sales to the top five customers exceed 90%, and the dependence on large customers is extremely high.
Among them, the largest customer (customer B) has almost half of its sales, and the proportion of sales continues to increase.
Judging from the expression of the prospectus, this large customer has just become its related party, and it is likely that Huawei has injected capital into the company through Hubble investment.
Customer A is a supplier in the aerospace field, somewhat mysterious, and we do not make too many guesses, this field emphasizes absolute autonomy and controllability, which is relatively stable.
Puzzlingly, the company's other big customers are jewelry companies.
Could it be that jewelry companies have also begun to transform into semiconductors?
Starry Sky Jun checked the information and found that the jewelry such as moissanite was synthetic, and the raw material of the synthesis was silicon carbide.
This crossover is quite gratifying, in case the semiconductor market is affected by anything, the company can transform into a jeweler.
Third, the development space is limited
For the vast majority of companies, the purpose of going public is to raise capital and to scale up. Ways to scale up include new plant lines, mergers and acquisitions, etc.
However, for Tianyue Advanced, the road of merger and acquisition is particularly difficult.
Wide bandgap semiconductors are the core components of military equipment such as active phased array radar, millimeter wave communication equipment, laser weapons, "aerospace-grade" solid-state detectors, and ultra-high radiation-resistant devices, so they are subject to the export control of the wassenaar Agreement internationally, and the acquisition of related enterprises will also be subject to strict scrutiny by Western developed countries. It is more difficult for the domestic industry to develop through epitaxial acquisitions. For the same reason, companies are less likely to be acquired.
In this case, the company's future development space is very limited.
This is a company with a very clear ceiling, and its investment value is mainly reflected in the dependence on large customers (Huawei). Once there is a problem with the customer structure, the company's operations are significantly affected.
Fourth, the gross profit margin change analysis
Large-scale cooperation with Huawei began in 2020.
The prospectus can be seen that in 2018, when you were there, sales from Huawei were only 1.48 million yuan, which was a very ordinary customer. In 2019, sales increased to 15.95 million yuan, accounting for about 8.56%, which is a normal customer sales.
However, by 2020, sales quickly climbed to 140 million, accounting for 40.29%. The nature of this ratio is different. It shows that after two years of tentative procurement, the two sides have established a close relationship of trust.
So much so that Huawei decided to invest, holding 6.34% of the shares, becoming the company's fourth largest shareholder.
Source: Flush iFind, Cartography: Poetry and Starry Sky
As mentioned above, Huawei's gross profit margin is very sufficient, leaving enough profits for the company's future development.
5. Summary
It is very difficult for listed companies invested by Huawei to make objective evaluations.
1. In terms of publicity of capital operation, Huawei's strength is not insignificant, which has also been criticized. Therefore, the concept of Being related to Huawei may go to heaven.
2. There is no problem with Tianyue's advanced technical strength, but the market space is limited and it is restricted by many capital markets.
3, large customers are the company's future development momentum, but also the shackles in the development process, to look at dialectically.
4, even if there are any big changes in large customers, the company's other two types of large customers, aerospace and jewelry, can still "guarantee the bottom"