Lenovo Holdings said in an interview that it welcomes market investors who recognize Lenovo's controlling brands and value to become shareholders of the company and that the company's operations are now normal and fundamentals remain stable. Legend Holdings will continue to play its unique role of 'twin-wheel drive' business model Advantages, promote the company's sustained growth of value.
Zhao Weiguo, chairman of Ziguang Group, said in an interview with "Talent": "Today's China has three depths in the development of chip manufacturing industry: market depth, capital depth and talent depth. The Chinese market is large enough, the money is enough, Levels and levels are rapidly improving.
'The chip industry is not like the internet industry and can not rely on a single one to eat all over the world.' Zhao believes that 'a steady stream of capital investment requires 10 billion U.S. dollars a year.'
Dialogue Zhao Weiguo: Chip unlike the Internet industry, can not rely on a recipe fresh around the world
"Talented": By the end of September, the first storage and power plant of Changjiang Storage will be capped ahead of schedule. The storage of the Yangtze River is a milestone in the mass production of China's memory chip industry. What are your expectations of this project?
Zhao Weiguo: Yangtze River Storage is China's Liaoning Province aircraft carrier in the field of science and technology.From its investment scale, technical level, the significance of the national industrial safety and national information security, this analogy is not an exaggeration.Changjiang Storage through this project, China National Semiconductor The industry truly has a certain status in the world.Changjiang Storage, with a total investment of over 24 billion US dollars, is one of the largest investment projects of Ziguang Group so far.The development and construction of the Yangtze River Storage undoubtedly is the most important work of Ziguang Group one.
"Talent": In the storage area, the situation is very grim, Samsung, SK hynix, Micron Technology, SanDisk, Intel, Toshiba almost control the global market .In your opinion, rewrite the giant monopoly pattern, but also how long it takes When do we expect Samsung to contend positively with SK hynix?
ZHAO Weiguo: China is completely empty in the field of mainstream memory chips, and before the Yangtze River Storage Project, we did not narrow the gap because the original base was zero, so the distance from the international giants before the storage of the Yangtze River is infinite. So Purple plans a 10-year investment of 100 billion U.S. dollars because the industry has the following characteristics: capital-intensive, talent-intensive, technology-intensive and global competition.
Chip manufacturing is not only high-end manufacturing, but also cutting-edge manufacturing, a decade of 100 billion US dollars in investment, which is an average of 10 billion US dollars each year, Intel, TSMC, Samsung each year in the chip manufacturing capital spending each exceeded 10 billion US dollars. To the average annual investment of 10 billion US dollars in the scale of investment, simply can not enter the chip manufacturing first camp.This industry is not only advanced technology, and must have capacity.
I think for five years we can gain a firm foothold. In another five years there should be considerable achievements, so we should have the mental preparation and strategic endurance of 'bench to sit cold for ten years'.
Historical opportunity
"Talents": The global storage industry has undergone a history of being dominated by the 'United States-Japan-Korea' enterprises and not a country that has remained undefeated for a long time. With the rise of China's economy, have Chinese enterprises ushered in storage Chip strong ranks of opportunity? Reflect the course of industrial development, how do you experience and feelings?
Zhao Weiguo: China's development of chip manufacturing industry is currently a window of great opportunity.China today, the development of chip manufacturing, there are three depth: the market depth, capital depth, talent depth.
China imports about two-thirds of the world's total annual output of chips. This is a huge market. China now has amassed the world's second largest capital after the United States. This is the depth of capital. China has graduated more than 7 million university students and nearly a million Of the total number of graduate students and doctoral students. As a total sum of these two numbers, the total number of mainland personnel recruited in the course of the year is even larger than that of all employed people in Taiwan. In addition, a large number of returned overseas students, overseas personnel working in China, The growth of entrepreneurial crowd, which is the huge depth of talent.Although the level and level of talent and the United States, Japan, South Korea and Taiwan, China still has a gap, but we are growing rapidly.
To reflect on the development of China's chip industry, we must have three clear-cut understandings. First, we must have talent. Second, we must have time. Third, we must spend endless money (just a metaphor, meaning that we need sufficient funds). The so-called talent means that there must be a world-class leader.This is a 'world war' (global competition), There is no world-class talent, there is no way to fight (on the stage).
The chip is not like the Internet industry, can not rely on a recipe to eat all over the world.This is a need to progress every day, continue to accumulate in the industry.So, have enough patience and patience, and have a full understanding of the time.This is a marathon , But not a sprint.But every 100 meters, but also like a hundred meters sprint stubbornly, so I say there should be a 'bench to sit ten years cold' strategic endurance and psychological preparation.
The so-called endless spending of money means that there must be sufficient input and an endless stream of capital investment. Ten years of 100 billion U.S. dollars is a basic figure.
"Talent": What is the difference between the semiconductor industry and high-speed rail, aeroengine and aircraft carrier?
Zhao Weiguo: The integrated circuit industry should adhere to the market orientation of the chip industry, which in China can be described as 'the full promotion of the national strategy, the full support of the local government and the successful operation of the enterprise market.'
Chip is not like high-speed rail, not a national procurement; chip market is fully competitive .If the market is not sufficient, it is certainly not good chip .Enterprise must be a market-oriented enterprises, which is a necessary condition. Only in this way It is possible to succeed in the chip field.
You see the state-owned enterprises to do the Internet, basically unsuccessful. Because the state-owned enterprises is difficult to adapt to the level of the Internet industry to meet the requirements of the Internet.For its market characteristics, the chip market and the Internet market is more like, but more difficult because the chip market no way Winning with a business model, with no spending habits and language advantages and no control by the government, it is only possible for fully market-oriented enterprises to succeed in such a fully marketed market such as chips. Hopefully the Chinese central and local governments will The focus of support is on fully market-based enterprises.
At present, the United States, Japan, South Korea and Taiwan enterprises in China is far ahead, we are latecomers .As a chaser, it is bound to pay a higher price.Aeroengine and aircraft carrier are the national procurement.Chip's mainstream market is not a country Procurement, so the development of the chip industry is more difficult.This requires the Chinese government to invest more resources to build the house to be high, the foundation must be playing deep.
Investment barriers
"Talent": How do you think about the inequality in the field of chips, foreign investment in China and overseas investment by Chinese enterprises? What kind of difficulties did China have in the development of the integrated circuit industry?
Zhao Weiguo: In the field of integrated circuits, overseas companies invest in China and Chinese enterprises invest overseas, which is totally unequal to their treatment. In overseas countries, the United States, Japan, South Korea and Taiwan, China are strictly guarding against mainland enterprises. At home, Due to the enthusiasm of Chinese local governments for attracting investment, overseas companies have almost super-national treatment in China, which has caused some difficulties for Chinese mainland enterprises in the development of the integrated circuit industry. Asymmetric competition in the field of overseas companies in mainland China rely on preferential policies and mainland China enterprises talent, capital and local government resources competition, so that Chinese companies are facing a very cruel local competitive environment.
"Talents": Purple previously planned to acquire Micron Technology, Western Digital, Taiwan Lik Sang, South Mao were terminated, after the Chinese fund acquisition of the United States Lattice Semiconductor, also the U.S. government halted.For now, China Semiconductor International The biggest obstacle to mergers or acquisitions is the issue of international investment barriers? Even political factors?
Zhao Weiguo: The development of integrated circuit industry is the key to the rise of China's science and technology industry and the key to making China a real great power and a powerful nation. The United States, Japan, South Korea and Taiwan Province of China do not want the rise of mainland China at all.
The industry of integrated circuits, not only has a large market, a wide range of applications, but also profits once it leads. Therefore, the blocking of enterprises in mainland China by the United States, Japan, South Korea and Taiwan from both political and economic factors.
The United States, Japan, South Korea and Taiwan of China have adopted the typical 'double standard': when marketization benefits them, they talk to you about marketization; when marketization is detrimental to them, they give you talk about the state Security. He came to mainland China, to tell you about marketization; you went to him, he told you about national security. Is completely two sets of principles. From a business point of view, it is extremely unfair. One of the basic business principles equal.
"Talent": ICs are extremely burn-down industries. Although there are national large funds and CDB's support, are the funds still inadequate?
Zhao Weiguo: Indeed, the funds are not enough. Apart from the support of the National Grand Fund, CDB and the Export-Import Bank of China, Ziguang also raised funds in various ways, including setting up various funds, jointly investing with local governments and cooperating at the capital level Etc. Purple also hopes to set up China National Semiconductor Corporation.
Samsung is a technology capital consortium. The chip business is only part of the business. Samsung's finance and industry for the development of the chip industry has provided huge sums of money. Purple light to learn from Samsung's development experience, a chip and cloud-based business as a comprehensive Science and technology consortia so that it is possible to complete the rejuvenation of China's IC industry's great cause.
Turn to independent research and development
"Talents": Is M & A necessary for Ziguang and should it seek a more modest mode of cooperation in the face of international mergers and acquisitions?
Zhao Weiguo: Purple today's model is independent innovation and international cooperation, although the purple through mergers and acquisitions into the chip industry, but the current focus of work has completely turned to independent research and development.
"Talents": Will the future rhythm of international mergers and acquisitions slow down?
Zhao Weiguo: will slow down, and now mergers and acquisitions is not our focus, which both purple own strategic considerations, but also the international environmental factors.
Interpretation: Why investment in Lenovo Legend Holdings?
Recently, Legend Holdings Ltd (03396.HK), which has been underperforming, has come out of a staggering wave of gains.
Since December 18, Lenovo Holdings shares rose continuously, up 4 days 42.18% .As of December 21 closing, the company shares have risen to 30 Hong Kong dollars, hit a new high for two years.
Why Lenovo stock prices skyrocketing?
First, Legend Holdings has been undervalued for a long time.
All along, Lenovo Holdings endured PB less than 1 times, PE less than 10 times the embarrassing situation in Hong Kong stocks in the context of a bull market, suffered a "unfair" treatment.
Lenovo Holdings shares long-term maintained at 17-21 Hong Kong dollars, the current net assets per share of 25.78 Hong Kong dollars, the stock price has long been below the net asset prices.
Second, Lenovo Holdings long-term market is not understood.
As is known in the industry, Legend Holdings is a large investment holding group that invests in six segments of IT, financial services, modern services, agriculture and food, real estate and chemical and energy materials.
Legend Holdings, the parent company of Legend Group (00992.HK), controls more than 30% of the consolidated financial statements and figures show that Legend Group provides nearly 94% of Lenovo's sales revenue.
However, Lenovo's share of Lenovo's net profit contribution has been weakened since it was launched, with Lenovo contributing 40.9% of net profit contribution in fiscal year 2014 as its main performance pillar. By 2016, this figure has been Down to 27.5%, to mid-year report, its share of net profit even more to less than 1%.
However, the share price of Lenovo Holdings is severely limited by the performance of Lenovo Group, and the general investors' perception of the value of Lenovo Holdings also depends on Lenovo Group, as evidenced by the stock price movements of the two companies in recent years.
Lenovo's development strategy is to keep pace with 'strategic investment' and 'financial investment.' The market has given a 'two-wheel drive, unique' component, but the capital market does not fully understand the intent of this strategy.
Liu Chuanzhi has publicly stated that the market does not understand Lenovo Holdings business, still remain in the IT business Lenovo Group .. He also stressed that Legend Holdings will not reduce Lenovo Group, will actively layout, strengthen strategic investment to balance the development and Reduce the impact Lenovo Group generated.
Such hybrid portfolios have traditionally been confused by the market, and investors have always avoided these businesses.Many investment institutions are "unable to understand" or "do not want to see" their attitude toward Legend Holdings.
However, as the Hong Kong stock market moves into a bull market and the companies invested by Legend Holdings grow and can really bring return on value, many investors will re-establish the analysis system of Legend Holdings.
Previously, Legend Holdings strategic investment Shenzhou Car Rental (00699.HK) was listed on the Hong Kong Stock Exchange in 2014. At present, La Cala is paying for the GEM is still in the stage of declaration.Group strategic investment and financial investment dual-driven business model is gradually Force, the gradual flowering of investment companies, these will be turned into a huge return on investment.
The true value of Lenovo Group is gradually recognized by the market.When the synergies between various business segments truly reflect the performance of the enterprise market value will be gradually restored, Lenovo Holdings is walking in the repair of the valuation of this road.
Why Ziguang Group bought Legend Holdings shares?
From the perspective of value investing, there are two principles for buying stocks: first, they are cheap enough; second, they buy good stocks and buy enough. Good company standards include a good corporate governance structure and steady growth Sex.
Obviously, the current Lenovo control stock price in line with the above two investment standards.
According to the announcement released on the evening of December 21, Ziguang Holdings (00365.HK), the subsidiary of Ziguang Group, increased its holding of 2.92 million shares of Legend Holdings from December 19 to December 21, accounting for 5.28% of the outstanding shares of the latter.
Ziguang Group is a high-tech enterprise under Tsinghua University.At present, the formation of a high-tech industry chain led by IC, from the core to the cloud.
Ziguang Group has grown into China's largest integrated integrated circuit companies, the world's third-largest handset chip companies; in the field of enterprise-class IT services ranked China first, second in the world.
In the fields of enterprise information service, IT manufacturing, mobile equipment and other fields, there is a lot of room for cooperation between Ziguang Group and the enterprises invested by Legend Holdings.
In addition, Legend Holdings' rich overseas M & A experience will also be effectively combined with the cross-border mergers and acquisitions needs of the Ziguang Group.At present, governments of all countries have implemented strict technical blockade on the IC industry and can imagine and operate a number of large-scale overseas M & A projects Legend Holdings, will undoubtedly help the Group's overseas acquisition plan.
At the same time, Ziguang Group, which strives to become a strong enterprise in science and technology in the world, needs to invest strategically in foreign markets. However, it is necessary for Ziguang Group to make reasonable financial investments in order to invest heavily in the distribution of storage chips and chips.
In addition, Lenovo Holdings listed in Hong Kong for nearly three years, many restrictions will be lifted, the Group's investment in Ziguang stamped on the point.
In view of the above reasons, the Group's investment in this group is a matter of course.