Per reporter: Ren Fei Per reporter Per reporter: He Jianling
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Different from the high exposure rate of consumer, technology, health and other tracks, the military track is not a regular customer in the spotlight, but the investment community's investment in the military industry has never stopped. On the one hand, the optimization of national defense equipment is inseparable from the investment of funds and technology; on the other hand, the coordinated development under the background of military-civilian integration is bringing vitality to the development of many private enterprises.
As a vertical investment institution, Zhongbing Shunjing Equity Investment Management Co., Ltd. is backed by the Ordnance Industry Group and is fulfilling its investment ambition of business first and capital assistance. Su Hang, managing director of the company, said in an exclusive interview with the "Daily Economic News" reporter that it is necessary to build a modern military investment system from the height of the industrial pattern, pay attention to industrial companies that understand research and development and production, and be responsible investors.
Su Hang, Managing Director of Zhongbing Shunjing Equity Investment Management Co., Ltd. (Source: Provided by the interviewee)
<h2>Military investment is "both wide and narrow" and cannot be narrowly characterized</h2>
When it comes to the military industry, most people may think of heavy equipment such as aircraft and artillery, but these are not necessarily the entire military industry. In fact, the scope of the military industry can be very wide, not only limited to equipment manufacturing, medical, logistics, information technology, network security, new materials and other industries, may become branches of the military industry, can be the basic elements of investors to build an industrial pattern.
Su Hang, managing director of Zhongbing Shunjing, said in an exclusive interview with reporters: "Military industry is a field that is both wide and narrow. It is wide because it covers many subdivisions of industries and can involve all aspects of the national economy and people's livelihood; it is said that it is narrow because the specific applications of these different industries are in the military industry, and the development of the military industry is inseparable from these elements. "Because of this, the threshold for investing in the military industry is not only to understand the needs of national defense, but also to master the integration with other industries."
In suhang's view, this threshold is not low, to invest in the military industry, first of all, it must be a military industry expert, so the investment institution with a military industry background has obvious advantages. It is reported that Zhongbing Shunjing is a professional platform for China North Industries Group Co., Ltd. to engage in private equity investment management, which is the backbone of the development of mechanized, informatized and intelligent equipment of our army, and the main force of the national "Belt and Road" construction and military-civilian integration development.
For the functional positioning of Zhongbing Shunjing, Su Hang said that it is to empower the dream of a strong army from the perspective of industrial investment, "We ourselves are market-oriented operations, the investors are basically institutional investors, and most of them have state-owned asset backgrounds." It is understood that Zhongbing Shunjing mainly manages the Zhongbing National Adjustment Equity Investment Fund, which has a total scale of 8 billion yuan, and captures investment opportunities for the growth of the real industry with the help of the industrial resources and brand effects of the central enterprises of the military industry.
<h2>Investment is based on industry, focusing on research and development and production</h2>
It is understood that the Zhongbing State Adjustment Equity Investment Fund invests in advanced manufacturing, information technology, new materials, optoelectronic information and other industries based on the principle of "market-oriented operation and professional management", and is the priority partner of capital operations such as mergers and acquisitions and reorganization, institute restructuring, and asset securitization of The Ordnance Industry Group.
"In principle, we are a hundred million yuan investment, the amount of investment is larger; at the same time, we rely on industrial resources, we can fully empower the invested enterprises, with investment in a high-quality enterprise as the starting point, to drive an industry up." So we define ourselves as industry investors. Su Hang told reporters that the projects they invested in have the nature of a real industry.
That is to say, if it is a pure model company and does not provide physical products or services, even if it has its own scientific and technological attributes, according to the investment concept of "technology + industry", such projects are not the main direction of Zhongbing Shunjing. "(We) do not deny its value, but as industrial investors, investing in real industries can better play our advantages and empower enterprises; at the same time, we also hope that the invested enterprises will form a two-way empowerment for us and give back to our LPs in a responsible manner."
But this does not mean that Zhongbing Shunjing only for the fund has invested in the enterprise to do industrial empowerment, Su Hang said that the concept of Zhongbing Shunjing adhering to is "business first, capital assistance", that is, to achieve enterprise empowerment services to the pre-investment stage, even if some enterprises can not eventually become investment objects, but as long as Zhongbing Shunjing can give some support, the relevant resources are also willing to actively dock for enterprises. "This is also the positioning of Zhongbing Shunjing as an industrial investor, and our primary goal is to develop the industry." Su Hang said.
Due to factors such as confidentiality, the fund's invested enterprises have not been able to disclose, but Su Hang said that in terms of the valuation growth of the projects that have been invested so far, some projects have doubled in the eight months after the investment, and the overall return of the fund can be expected. In this regard, he believes that the key is to find enterprises that have both research and development strength and are good at the production end. "Military enterprises have extremely high requirements for supporting suppliers, especially in key technical indicators; but once recognized, they will give suppliers long-term stable orders." Therefore, focusing on research and development and production is an important criterion for the selection of projects in Zhongbing Shunjing.
<h2>"Investment + investment banking" helps enterprises to marketize</h2>
In terms of marketization, Su Hang said that Zhongbing Shunjing uses the concept of "investment + investment banking" to help enterprises change their thinking and marketization, especially for some enterprises in the system, help them do capital operation and strategic planning, and help them get close to the market. "Especially in the field of investment banking services, we are helping enterprises to do the comprehensive design of capital operation, making suggestions for the construction of internal systems of enterprises, and assisting enterprises to connect with the capital market." This is a bit like the listing coaching work of investment banks. ”
Su Hang said that the development prospects of the military industry are huge, although the valuation of the invested enterprises is relatively high in the eyes of some people, but in the long run, the potential for military-civilian integration is huge, which is not only an opportunity for private enterprises, but also the expansion direction of military enterprises. Both are able to share profits in stable business partnerships and are very robust from a long-term investment perspective.
Therefore, Su Hang believes that it cannot be said that the valuation of military enterprises is high and unreasonable, after all, the capitalization rate of military enterprises is not high, and the equity of invested enterprises has a certain scarcity. For the future capitalization of enterprises, SuHang believes that direct listing is of course the best, but other opportunities are not excluded.
"Direct listing and mergers and acquisitions can be considered, and I think the advantage of relying on the group (Ordnance Industry Group) is that if the invested enterprises are particularly in line with the needs of the group's development, the two can be hit at once, and the equity withdrawal can be completed through the group's acquisition." Su Hang said that the group currently has 13 listed company platforms, and helping enterprises to capitalize operations is also an advantage that other non-vertical investment institutions do not have.
Su Hang concluded that in the next ten to twenty years, investment in the military industry is facing a good time window, "after the end of the military reform, many private military enterprises have been rejuvenated, and everyone has good prospects for development." Therefore, whether from the macro situation or micro policy, the investment opportunities in the field of military-civilian integration are very large, whether from the perspective of industrial development or investment returns, there will be better results. ”
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