Author | Jia Weizhong
Source | Car selection network
On January 28, the last trading day of A-shares, the automotive industry ushered in good news: BYD issued an announcement: the Listing Committee of the Growth Enterprise Market of the Shenzhen Stock Exchange issued the results of the deliberations: BYD Semiconductor met the issuance conditions, listing conditions and information disclosure requirements.
This news means that the long-planned BYD semiconductor business has been independently split and listed, and it has officially entered the right track. BYD Semiconductor will become the "first stock of automotive chips" in the domestic capital market.
According to the announcement information issued by the GEM Listing Committee, BYD Semiconductor intends to issue no more than 50 million shares this time, raising about 2 billion yuan, mainly invested in the research and development project of key technology of power semiconductor, the research and development project of high-performance MCU chip design and test technology, the research and development project of high-precision BMS chip design and test technology and the supplementary working capital.
Back in mid-April 2020, BYD issued an announcement that it had completed the internal restructuring of its wholly-owned subsidiary, Shenzhen BYD Microelectronics Co., Ltd., through equity transfer and business transfer between its subsidiaries. In the future, the renamed company intends to introduce strategic investors by means of capital increase and share expansion, and actively seeks to be independently listed at an appropriate time.
At that time, as soon as the news of BYD Semiconductor's split and listing came out, it attracted the attention of many capital and investors. According to reports, in 2020 alone, BYD Semiconductor received a total of 3 financings. Among them, there are dozens of investment companies such as Sequoia Capital, China CICC Capital, SDIC Innovation and Himalaya Capital, SK China, Xiaomi Group, CMB International Capital, Lenovo Group and dozens of other investment companies with multiple rounds of financing. After the financing is completed, BYD Semiconductor's valuation is about 10.2 billion yuan.
Why is the capital market so optimistic about BYD chips? The reason is that it has broken the monopoly of the industry to a certain extent.
Some media believe that "the listing of BYD spin-off chip companies is of great significance to the automotive chip industry to break through the monopoly of Infineon and other companies." IGBT has always been known as the 'CPU' of power electronic devices, its contribution to the value of new energy vehicles, not weaker than the power battery, IGBT cost accounts for about 5% of the cost of the vehicle, in the cost structure is second only to the power battery. ”
Before BYD developed and produced its own IGBT chips, domestic automotive IGBT chips were monopolized by multinational companies such as Infineon, which not only had high prices, but also limited supply, which became a bottleneck restricting the development of domestic new energy vehicles.
In order to solve the problem of being stuck in the neck, BYD invested in research in 2005, and 4 years later, the first generation of IGBT chips passed mass production tests and technical identification, and gradually began to support BYD's own electric vehicles. By now, BYD's IGBT chip has developed to the sixth generation.
Although it is of great significance for BYD's IGBT chip to break the monopoly, from the perspective of operation, the company has seen the phenomenon of increasing revenue and not increasing profits for several consecutive years.
According to the prospectus, from 2018 to 2020, BYD Semiconductor's revenue was 1.340 billion yuan, 1.096 billion yuan and 1.441 billion yuan, respectively, and the net profit attributable to the mother in the same period was 104 million yuan, 0.85 billion yuan and 0.58 billion yuan, respectively.
The explanation of the industry is: "Although BYD chips can complete their own supporting facilities, because BYD is also producing electric vehicles, because of competition problems, most domestic electric vehicle companies dare not use BYD's IGBT chips, and still have a strong dependence on Infineon and other companies." ”
The report from The Wall Street Insider also confirmed the judgment of the above-mentioned people. According to reports: "Judging from BYD Semiconductor's top five customers, more than half of its revenue still comes from the parent company." From 2018 to 2020, BYD Semiconductor received revenue of 909 million yuan, 601 million yuan and 848 million yuan from the largest customer BYD Group, accounting for 67.84%, 54.81% and 58.84% of the current revenue, respectively. ”
Overall, although BYD Semiconductor is about to become the "first stock of automotive chips", looking at the world, compared with international manufacturers such as Infineon and Renesas Electronics, there is still a gap in the market share of BYD semiconductors.
Therefore, after the successful listing in the future, the aura of BYD Semiconductor's "first stock of vehicle specification chips" will gradually fade, and the problem facing this company is how to do a good job in market expansion and reduce the proportion of related party transactions with the parent company in the context of the development of China's intelligent electric vehicles.
In fact, Wang Chuanfu, chairman of BYD Group, also had this idea earlier, so he told the media: "Subsidiaries only earn BYD's money, that is not called skill, dismantling out to earn market money is called skill, which means that the product is competitive." ”
Before the Spring Festival of the Year of the Tiger, bydir Semiconductor's success will be worth celebrating. At the same time, we will continue to monitor the future development of this company. The above is a family statement, welcome to criticize more.
(Image source: Internet)