The 5.1 billion fixed increase is announced! The second phase of the big fund is happy to mention the "discount price"! What is Huatian Technology's intention?

With the prosperity of the semiconductor industry rising, many companies in the industry have also spent huge sums of money to start building new production capacity to expand the scale, and several major manufacturers in the sealing and testing link are no exception, among which Huatian Technology (002185.sz) raised 5.1 billion yuan of fixed increase plan after nearly ten months and was finally completed on November 4.

On November 5, the company's stock price (hereinafter referred to as the previous reversion) directly opened 6.45%, and rose 9.72% intraday, but then suffered a pullback. As of the close, the stock finally rose 5.62% to close at 13.91 yuan / share, and the daily turnover was magnified to 4.007 billion yuan, and the latest total market value was 44.574 billion yuan.

In fact, in addition to Huatian Technology, Changdian Technology and Tongfu Microelectric, which are also known as "sealed test leaders", have also thrown out their own fixed increase plans in the past year or so.

The second phase of the big fund was allocated to increase the shares

Founded in December 2003 and listed in November 2007, Huatian Technology is mainly engaged in semiconductor integrated circuit packaging and testing business, and its development strategy includes "endogenous growth + epitaxial mergers and acquisitions".

At present, the company's integrated circuit packaging products can be divided into three categories: (1) lead frame products, mainly including dip/sdip series, sot series, sop series, ssop/tssop/etssop series, qfp/lqfp/tqfp series, qfn/dfn series, etc.; (2) substrate products, mainly including bga/lga series, fc series, mcm(mcp) series and sip series; (3) wafer-level products, mainly including WLP series, tsv series, bumping series, mems series, etc. Products are mainly used in computers, network communications, consumer electronics and intelligent mobile terminals, Internet of Things, industrial automation control, automotive electronics and other electronic machines and intelligent fields.

Specifically, looking at the fixed increase, the final number of shares issued is about 465 million shares, which were listed on November 9 at an issue price of 10.98 yuan per share, and the total amount of funds raised is about 5.1 billion yuan.

The funds raised will be used for the scale expansion project of integrated circuit multi-chip packaging after deducting the issuance fee (to be invested in the 1.09 billion yuan, the same below), the high-density system-level integrated circuit packaging and testing expansion project (1.03 billion yuan), the tsv and fc integrated circuit packaging and testing industrialization project (900 million yuan), the storage and radio frequency integrated circuit packaging and testing industrialization project (1.38 billion yuan), and another 700 million yuan for supplementary working capital.

The announcement also shows that there are 20 investors who have been allocated to increase their shares, including many well-known institutions, which can be described as star-studded, the most eye-catching of which is the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. (hereinafter referred to as "Big Fund Phase II").

It is reported that the second phase of the big fund was allocated 103 million shares, which is the largest number of shares allotted among these institutions, and the amount of allotted is about 1.13 billion yuan, which is also the largest.

According to the number of shares after the fixed increase, the second phase of the big fund will become the second largest shareholder of Huatian Technology, with a shareholding ratio of 3.21% of the total share capital.

It is worth mentioning that as of the close of trading on November 5, the stock price of Huatian Technology was 13.91 yuan / share, and the increased issue price was 10.98 yuan / share, which also means that the investors who were allocated shares have now made nearly 27% profits.

Recently, the second phase of the big fund also participated in the fixed increase of the Northern Huachuang (002371.sz), and also mentioned the "discount price".

What are the packaging and testing companies that have set the increase?

Huatian Technology, North Huachuang are the leaders of the semiconductor industry chain segmentation links, and in addition to these two companies, since 2020, Sanan Optoelectronics, Zhonghuan Shares, GCL Integration, Gigabit Innovation and other companies have also raised funds to expand production, of which Changdian Technology, Tongfu Microelectric and Huatian Technology, are mainly engaged in the sealing and testing business, with the title of "sealing and testing leader", the amount of funds raised is in the range of 5 billion yuan to 6 billion yuan, and the investment is mainly engaged in the main business of sealing and testing.

Why are the three sealing and testing leaders all raising huge funds to increase the sealing and testing business through fixed increases in the past year or so?

In general, the core reason is the rapid development of the semiconductor industry in the past two years, the prospects are bright, and active expansion of production will help improve performance.

As we all know, packaging and testing includes two links: packaging and testing. Among them, the package is to protect the chip from physical, chemical and other environmental factors caused by damage, enhance the thermal performance of the chip, realize the electrical connection, and ensure the normal operation of the circuit; the test is mainly the function and performance test of the chip product, and the function and performance of the product are screened out. The value of the packaging link is about 80%-85%, and the value of the test link is about 15%-20%.

According to WSTS statistics, from 2011 to 2018, the size of the global semiconductor market increased rapidly from $299.5 billion to $468.8 billion, with an average annual compound growth rate of 6.61%. In the second half of 2018, due to the slowdown in global macroeconomic growth and the decline in smartphone sales, the demand for the global electronics industry was weak, and the semiconductor industry, as the upstream basic industry of the electronics industry, also shrank.

Since the second half of 2019, the fields of memory, high-performance computing, 5G communications, Internet of Things, data centers, and automotive electronics have developed rapidly. With the gradual recovery of downstream industry demand, the global semiconductor industry has resumed growth, and the industry boom has rebounded significantly. In 2020, the global semiconductor market reached $440.4 billion, an increase of 7.41% year-on-year.

In 2021, the world enters the post-epidemic era, and the semiconductor industry shows a strong growth trend driven by the rapid development of cloud computing, 5G, AI, virtual reality, Internet of Things, autonomous driving, robotics and other emerging technologies.

At present, China has become the world's largest electronic product production and consumption market, resulting in a huge demand for semiconductor devices. According to the statistics of China Semiconductor Industry Association, from 2011 to 2020, the size of China's semiconductor market expanded from 193.4 billion yuan to 884.8 billion yuan, with an average annual compound growth rate of 18.41%, which is significantly higher than the growth rate of the global semiconductor market.

Specific to the downstream packaging and testing link, the statistics of the China Semiconductor Industry Association show that from 2011 to 2020, the average annual compound growth rate of China's semiconductor packaging and testing market is 18.14%. In 2020, the scale of China's semiconductor packaging and testing market reached 251 billion yuan, an increase of 6.8% over 2019, and the growth rate was higher than the growth rate of the global semiconductor packaging and testing market.

The higher prosperity of the industry has also improved the performance of related companies. The data shows that the revenue and attributable net profit of Huatian Technology, Tongfu Microelectronics and Changdian Technology in the first three quarters of 2021 have recorded growth, especially the net profit attributable to the mother has exceeded the net profit attributable to the mother in 2020.

Looking forward to the future, with the continuous expansion of the domestic semiconductor market and the implementation of domestic substitution, the prospect of packaging and testing is still worth looking forward to.

In fact, this also gives the above-mentioned enterprises the confidence to raise funds and expand production.

It is worth noting that the semiconductor packaging and testing industry has the characteristics of capital-intensive and technology-intensive, so the financial strength, technology research and development capabilities and scale benefits are very critical for semiconductor packaging and testing enterprises. In the case of active expansion of production by peers, if you do not do this, you may be at a disadvantage in the next competition, which may also be one of the reasons why Huatian Technology has thrown out a fixed increase plan.

epilogue

Nowadays, driven by domestic substitution, accelerated 5G construction, consumer electronics and automotive electronics demand growth, the prospect of semiconductors is still very bright, and the expansion of production has been the consensus of most manufacturers in the industry, as for how much production capacity Huatian Technology can eventually expand through this fixed increase, how much performance will be improved.

This article originated from Caihua Network