On April 22, Suzhou Nanochip Microelectronics Co., Ltd. (hereinafter referred to as "Nanochip Micro", stock code: 688052) was successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, and the issue price of Nanochip Micro was 230 yuan / share, creating the highest price of A-share new shares issued since 2022, and also became the highest price in the history of the new stock issue price of the A-share semiconductor industry, and the company actually raised 5.811 billion yuan, 6.75 times more than the offering.
After the listing, the market performance of Naxin micro-intraday made investors quite amazing, opening 8.7% higher in the morning, opening price of 250 yuan / share, the highest intraday touched 275.02 yuan / share, an increase of more than 19%, as of the data ape press release, the company still rose by 8.21%, the total market value of more than 25 billion yuan.
Before the listing, about 40% of the online winning retail investors chose to abandon the purchase, and the amount of abandonment was as high as 778 million yuan. It should be known that the proposed funds raised by Naxin Micro in this IPO are only 750 million yuan, and the amount of abandonment is even more than that of the funds to be raised, so the title of "abandoned purchase king" has caused group ridicule for a while. However, from today's market performance, Nanochip has been highly recognized by the market, and its own strength has been justified.
Three-stage development, 4-year profit doubled 110 times
Public information shows that Nanochip is a focus on high-performance, high-reliability analog integrated circuit research and development and sales of integrated circuit design enterprises, products in the technical field covering analog and mixed-signal chips, since its establishment in 2013, the company has been focusing on analog chips research and development, design and sales, its products and technology evolution has gone through three stages.
Stage 1: From 2013 to 2015, in the early stage of its establishment, the company focused on the development of sensor signal conditioning ASIC chips in the field of consumer electronics, and the products were mainly used in sensor signal conditioning ASIC chips in the field of consumer electronics.
Phase 2: From 2016 to 2017, the company began to cut into the industrial and automotive fields, launching pressure sensor signal conditioning ASIC chips for the industrial control field and AEC-Q100 standard and facing the automotive front-loading market, as well as silicon microphone and infrared sensor signal conditioning ASIC chips, further expanding the product category.
Stage 3: Since 2018, the company has developed isolation and interface chips, driver and sampling chips, integrated sensor chips and other types of products. Among them, in 2018, the standard digital isolation chip and isolation interface chip were launched, and in 2020, the digital isolation chip, isolation driver chip and isolation sampling chip with integrated power supply were successfully launched, realizing the multi-category coverage of products in the field of digital isolation.
The continuous enrichment of categories and the strong demand of the downstream market have enabled the company's performance to achieve a stepwise large span upward. In 2018, the company only had two major products, signal sensing chips and isolation and interface chips, generating revenue of 36.42 million yuan and 810,000 yuan respectively; and in 2020, the company not only achieved exponential revenue growth in the original category, but also new product-driven and sampling chips began to generate revenue. Specifically, the signal sensing chip and the isolation and interface chip achieved revenue of 129.59 million yuan and 106.82 million yuan respectively, of which the three-year compound growth rate of isolation and interface chip revenue was as high as 1048.38%.
Previously, when analyzing the core dragon technology, we talked about the analog chip is a "long slope thick snow" track, the product life cycle is long, the demand for a single product is small, so continuously enriching the product category is the lifelong goal of every analog chip company. Nowadays, Naxin Micro has been able to provide more than 800 product models for sale, compared with other listed companies in domestic analog chips, only less than shengbang shares (more than 3500 products in 25 categories) Si Ruipu (more than 1400 kinds of products) the number of products, the number of nanochip micro products is in the upper position of the listed analog chip companies.
Under the good development prospects, from 2018 to 2021, the operating income of Nanocore Micro was 0.4 billion yuan, 0.92 billion yuan, 242 million yuan and 862 million yuan, from 0.4 billion yuan to 242 million yuan, a five-fold increase; at the same time, the net profit attributable to the mother was 0.02 billion yuan, a loss of 0.09 billion yuan, 0.51 billion yuan and 221 million yuan, and the net profit attributable to the mother increased by 110 times from 2018 to 2021!
Chart: Growth of Nanocore Micro Performance (2018-2021) Source: Prospectus, Data Ape Collation
The mysterious "Customer A" helped the company go from a loss of 9 million to a profit of 51 million
From the performance of Nanochip, its 2019 to 2020 can be described as a leap forward growth, in 2019, the revenue did not exceed 100 million, the net profit was still 9 million, but in 2020, its revenue suddenly soared to 224 million, and the net profit in the same year also increased from loss to more than 51 million. What the hell is going on?
In addition to the increase in product categories and the expansion of revenue channels we talked about above, there is another important reason: customer A.
According to the prospectus, among the top five customers during the reporting period, Nanochip has successively supplied batch supply to customer A through distributors Avnet Hong Kong and Aramco since 2018. With the expansion of the transaction between the two parties, the Company officially became the direct supplier of Customer A in January 2020 and supplied it directly, and the Company's transaction with Amerstone was to fulfill unexecuted orders (Note: Customer A's previous year's order).
Compared with the data in 2019 and 2020, in 2019, Avnet Hong Kong and Amerstar purchased a total of 27.17 million yuan of isolation and interface chips; in 2020, customer A directly purchased isolation and interface chips of 42.06 million yuan, and Amerstone did not complete orders of 13.54 million yuan, a total of 55.6 million yuan. That is to say, the introduction of "customer A" in 2020 will increase the procurement amount by 28.43 million yuan compared with 2019, and all of them will be used to purchase isolation and interface chips.
From distribution to direct sales, sales from 27.17 million to 55.6 million, customer A's order for the company's isolation and interface chips to achieve a large-span revenue jump provided a strong boost, and this mysterious "customer A" is undoubtedly Huawei (Note: The prospectus mentions that "customer A is a first-line manufacturer in the domestic information and communication industry"). Based on the advertising effect brought about by Huawei's recognition of nano-core micro-isolation and interface chip reliability, the company's shipments of such products in other fields also showed an increasing trend in 2020.
From the prospectus, isolation and interface chips accounted for 44.33% of total revenue from 2.05% in 2018, to 35.14% in 2019, and then to 44.33% in 2020. Isolation and interface chips achieved revenue of 32.1 million yuan in 2019 and 106.82 million yuan in 2020, an increase of 233% year-on-year.
According to the prospectus, from 2018 to 2020, the gross profit margin of nano-core micro-isolation and interface chip has been stable at about 55%, which is higher than the gross profit margin of signal sensing chips in the same period. After the isolation and interface chips with higher gross profit margins increased in the proportion of revenue, the company achieved a turnaround in 2020.
Huawei is not only a major customer of the company, the data ape further penetrated the company's equity and found that Huawei invested a total of 200 million yuan through Hubble Technology Investment Co., Ltd. and Huawei Technologies Co., Ltd., becoming the second largest shareholder of Red Clay Shanli. In the process of capital increase of Naxin Micro in September 2020, Laterite Shanli subscribed for 200,000 shares of Naxin Micro at a price of 200 yuan per share, with a shareholding ratio of 2.37%. As a result, Huawei indirectly holds a 0.79% stake in Nanochip Micro.
In addition to Huawei, the star shareholders behind Naxin Micro are gathered, including the Internet of Things Phase II Fund, Shenzhen Venture Capital, Juyuan Juxin, Yuanhe Puhua, Huichuan Technology, Xiaomi Yangtze River, Su Min Investment, etc.
In fact, Huawei, which is both a customer and a shareholder, has not participated less, and the listed analog chip manufacturer Sriepu is supported by Huawei all the way.
Like Nanochip, Huawei, as the largest customer of Silipu, contributed 50% of Therapu's revenue source, turning its performance into profit and making up for all losses since its inception. The continuous upward performance has also made Huawei's investment rich returns, if Huawei Hubble 32.13 yuan / share acquisition cost, holding 3991999 shares (Si Ruipu closed at 523.9 yuan / share on April 19) Huawei Hubble profit of 1.967 billion yuan.
According to other data ape statistics, as of April 20, Huawei Hubble has three listings in the hand target (SiRuipu, Shandong Tianyue and Dongxin shares), and there are 7 companies in the IPO process, such as Haoda Electronics, Changguang Huaxin, Canqin Technology, and Yuanjie Semiconductor.
Under the restrictions of the entity list, Huawei has accelerated the purchase of domestic chips and other related supply chain enterprise products, which to some extent is really a "curve self-help", and through "strategic investment" in these enterprises, it obtains shares at a low price, and then promotes the performance of the target enterprises, further helping the target enterprises to achieve listing, which is a win-win situation for both Huawei and the target enterprises.
Don't blindly follow the purchase
The break of new shares, the loss of winning the lottery, the abandonment of purchases and even not participating in the subscription has become a major focus of the A-share market in recent days. Previously, the listing price of Weijie Chuangxin was 66.6 yuan / share, but such a "Geely" figure did not stop the market from voting with its feet, and the closing stock price fell by more than 36.04%, creating the largest decline on the first day of the listing of new shares in the past 20 years, which means that the floating loss of zhongyi is 12,000. In addition, Puyuan Precision, which has not yet made a profit, also suffered the same experience on the first day of landing on the science and technology innovation board, and fell by nearly 35% on the first day.
The frequent breakout of new stocks has made the original euphoric winning payment scene gone, and now the winning lottery is like a "knife". Investors have shouted "do not apply" and "if you win the lottery, you will also abandon the purchase". Suddenly, semiconductor listed companies have changed from "small sweet" to "cow lady", no matter what the quality of the company, the atmosphere of "high price and abandonment" has become more and more intense.
Chart: Performance on the first day of the listing of new stocks on the Star Market Source: wind
The main reason for this break is that the change in the inquiry rules has increased the issue price, and the weakening of market sentiment has formed a catalytic effect on the break.
Let's look at the rule changes first.
Previously, in order to protect the interests of investors and ensure that new shares can be issued in an orderly manner, the issuance policy has made a number of restrictions on the high price quoted in the inquiry process, and the high price will be excluded, commonly known as "high culling", the most important of which is to deduct the highest 10% of the quotation. This policy has led to the fact that the institutions involved in the inquiry are afraid to quote high prices, resulting in low issuance pricing and centralized quotations.
For example, on the first day of listing, Fudan Microelectric issued a nearly 800% increase, a total of 508 offline investors managed the quotation information of 11157 placement objects, of which 85.68% of the account quotation difference did not exceed 4 cents, the final price was 6.23 yuan / share, the result of the market correction of the company's stock price after the listing was a single-day increase of 800%, which can be called a miracle of artificial growth.
Since the opening of the Science and Technology Innovation Board in 2019, the increase in the stock price after the listing of new shares has intensified, according to the statistics of securities companies, the increase in 2019 was 115.06%, the increase in 2020 was 198.89%, and the increase in 2021 was 248.41%. It can be said that all investment institutions and investors who participate in the issuance of new shares can make a lot of money, but this extremely low issue price makes it painful for companies seeking listing financing. After all, the money raised is the money on the account, the low-priced issuance raises less money, and the stock price surge after the listing has little to do with the funds that the company urgently needs.
Then, in order to control pricing, speculation and balance the interests of buyers and sellers, in September 2021, the CSRC revised the issuance and underwriting rules to optimize the quotation system, while the Shanghai and Shenzhen exchanges revised the rules to improve the high-price exclusion mechanism, the most important of which was the maximum quotation exclusion ratio from "not less than 10%" to "no more than 3%".
This revision will alleviate the problem of the low pricing of some new shares, and after the issuance pricing becomes higher, the funds raised by enterprises will increase, and from the perspective of recent semiconductor listed companies, they will basically show a state of over-raising. More market-oriented pricing has led to excessive issue prices of some new shares, and in the environment of weak market sentiment, the breakout rate of new shares has gone up. Wind statistics, in 2022, all A-shares issued 87 new shares, 45 broke, the break rate of 51.72%.
In addition, the supply chain disturbances caused by geopolitical conflicts and the related actions of the United States against Chinese semiconductors, including the overall A-share environment, are further affecting the sentiment of semiconductor secondary investment and accelerating investors to "abandon" semiconductors.
Nowadays, the question of whether the stock price of Nanochip Micro 230 yuan / share is expensive, the market has given the answer. From the perspective of product type, category scale, revenue volume, research and development advancedness and other factors, the pricing given by the market to 230 yuan / share has its reasonableness, but in the case of the overall "general environment" is not good, the "high-priced" nano-core micro has been abandoned without accident. However, abandonment does not mean that the company is broken, and even if the company breaks, it is not necessarily that the stock price will not repeatedly reach new highs in the future business growth, and in the end, the quality of the company determines the height of the stock price. For semiconductor company investment, there are many professional terms and high research thresholds, investors should look at it rationally and must not blindly follow others.
Text: MuYang / Data Ape