The second phase of the National Fund invested the first order of the Year of the Tiger: 300 million yuan participated in the fixed increase of Shennan Circuit to accelerate the layout of chip materials

21st Century Business Herald reporter Zhang Sainan reported from Shanghai

After the Spring Festival of the Year of the Tiger, the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. (hereinafter referred to as "Big Fund Phase II") made its first move, targeting the leader of printed circuit boards.

On the evening of February 9, Shennan Circuit (002916) disclosed the fixed increase. According to the announcement, the issue price of the non-public shares of Shennan Circuit was 107.62 yuan / share, and 23.694448 million shares were issued, with a total of about 2.55 billion yuan raised, and the issuance object included 19 investors including the second phase of the large fund, and the net amount of funds raised was mainly invested in the manufacturing project of IC carrier board products for high-end flip chips.

The luxury fixed increase group landed

Judging from the placement results, the subscription lineup is luxurious, covering funds, brokers, banks, foreign and insurance companies.

Among them, Huatai Securities had the highest subscription amount, with a total expenditure of 352 million yuan to allocate 3.28 million shares, and the second phase of the large fund subscribed to 300 million shares, with 2.7876 million shares allocated. At the same time, AVIC Production and Investment, a related party of AVIC International Holdings, the controlling shareholder, subscribed for 150 million yuan.

In addition, China Galaxy Securities subscribed 104 million yuan, CITIC Securities subscribed 75 million yuan, and fund companies, Caitong Fund, CEIBS Fund and NORD Fund subscribed 92.1911 million yuan, 73 million yuan and 71 million yuan respectively. In addition, foreign giants such as JPMorgan Chase Bank, Swiss Bank, and BNP Paribas were allocated.

After this round of fixed increase, the actual controller of Shennan Circuit is still China Aviation Industry Group, while Huatai Securities has become the third largest shareholder of Shennan Circuit with the allocated shares, with a shareholding ratio of 0.64%, the shareholding ratio of the second phase of the National Large Fund is 0.54%, becoming the fifth largest shareholder of the company, and JPMorgan Chase Bank and Swiss Bank also hold 0.48% and 0.38% of the shares respectively with this subscription, becoming the sixth and ninth largest shareholders.

The national large fund has always been the vane of the industry, and the subscription of Shennan Circuit undoubtedly represents the direction of market investment.

Previously, the 21st Century Business Herald reporter reported that since 2021, the first phase of the big fund has accelerated the pace of withdrawal, and in the beginning of 2022, it will reduce its holdings in GuokeWei (300762) and Jingjiawei (300474), cashing out more than 1.3 billion. According to Qixinbao data, there are currently 20 public investment projects in the second phase of the big fund, involving Stepway, SMIC South, Apex microelectronics, Zhixin microelectronics, etc.

Entering the Year of the Tiger, Shennan Circuit is the first investment of the second phase of the big fund.

Invest in high-end chip storage substrates

According to public information, Shennan Circuit has been engaged in the PCB (printed circuit board) industry for more than 30 years, and is one of the leading enterprises in the industry, mainly including printed circuit boards, packaging substrates and electronic assembly three businesses.

The funds raised in this offering are mainly used for the manufacturing project of IC carrier board products for high-end flip chips, with an investment amount of 2.016 billion yuan; the proposed investment is 1.8 billion yuan. Another $750 million was used to replenish working capital.

According to the feasibility report disclosed by Shennan Circuit, the high-end flip chip storage substrate project will be built in Wuxi, and the infrastructure construction period is expected to be 2 years and the production period is 2 years. The internal rate of return on investment is 13% and the static payback period is 7.5 years. On February 9, Shennan Circuit revealed on the interactive platform that the capacity climb of Wuxi packaging substrate factory is progressing smoothly.

It is reported that the packaging substrate is an important material for chip packaging, which is used in various chip packaging, such as memory chip packaging, RADIO frequency chip packaging, etc. It is eventually applied to mobile phones, computers, data storage, automotive electronics and other fields. With the continuous increase in the demand of downstream application fields, the packaging substrate has entered a period of rapid development.

Prismark predicts that the compound annual growth rate of continental packaging substrate output value from 2020 to 2025 will be about 12.9%. According to a report released by the China Commercial Industry Research Institute, the scale of the mainland integrated circuit industry is expected to reach 1.18 trillion yuan by 2022.

According to Prismark's statistics in 2020, the current global packaging substrate market is basically occupied by PCB companies in Japan, South Korea and other regions such as UMTC, Ibiden, and SEMCO.

In September last year, shennan circuit said in an institutional survey that the packaging substrate is still in its infancy in the mainland, and there is no large-scale packaging substrate enterprise. At present, domestic packaging substrate products are mainly imported, which limits the development of the whole industrial chain of integrated circuits.

When introducing the fundraising project before, Shennan Circuit said that the company's existing high-end flip-down packaging substrate production capacity and the industry's leading manufacturers have a large gap, and the smaller production capacity makes the company have certain disadvantages in terms of procurement costs and cost sharing, and it is difficult to form a significant scale effect, thereby affecting the international competitiveness of the company's packaging substrate. At the same time, the company's existing packaging substrate factories are unable to undertake the technology and production capacity requirements of future high-end flip-chip packaging substrate products, and it is urgent to further improve the hardware conditions such as equipment and environment to have high-end process technology capabilities and production capacity.

Many investors believe that it is reasonable for Shennan Circuit to be favored by large funds this time.

Affected by the news of the fixed increase, as of the close of trading on February 10, Shennan's stock price rose 3.89% to 116.5 yuan / share, an increase of 8.2% compared with the fixed increase price, and the market value was 57 billion yuan.

For more information, please download the 21 Finance APP