Ansemi Semiconductors, which jointly invested $2.75 billion (approximately RMB 18.1 billion) in the acquisition of NXP's NXP standard parts business in 2016, is the best asset for Chinese companies to acquire overseas targets. Which Hefei Guangxin Fund as an indirect largest funder, is the largest single shareholder.
However, according to the announcement, the transfer reserve price for the proposed transfer of 70% of Hefei Guangxin Fund has been raised from RMB 5 billion to RMB 7 billion. Domestic A-share listed companies are still in the process of being transferees, among whom is Tat Technology, Dongshan Precision, Wentai Technology has successively stated its position in the bid; however, Ansi Semiconductor's management is opposed to the re-listing of Chinese A-share listed companies.
Three A-share companies compete for higher dilution of PE
The company's exclusive exposition of micro-net previously released successively the series of articles that “big shareholders plan to transfer equity in NXP's standard business, and several A-share companies bid for management but opposed to re-listing” disclosed that A-share listed companies are planning to bid for Hefei Guangxin Fund. In order to allow Axis Semiconductor to list on domestic A-shares, however, after the opinions of stakeholders have been consolidated, Ansemi management believes that A-share listing is not the best channel.
Although the management of Ansi Semiconductor did not oppose the transfer of its shares by Hefei Guangxin Fund, from the perspective of disclosure of participating in the bids of the three A-share companies, Tiida Technology, Dongshan Precision, and Wingtech, the operating level, profitability, and management capabilities are all lower than Ansa Semiconductor itself is at a disadvantage because of the concerns of its customers and supply chains such as key raw materials.
From the first disclosure of participating in the campaign, Juda Technology is the leading manufacturer of automotive fabrics and seat coverings in China. The business is relatively stable. In 2017, Tiida Technology achieved a net profit of 382 million yuan for the year, a year-on-year increase of 26.8%. 8 billion yuan. According to Tianfeng Securities, in 2018, Tiida Technology's net profit was 410 million yuan, corresponding to a growth rate of 10%, EPS of 0.28 yuan, corresponding to PE 25 times. This was followed by suspension of Dongshan Precision. Since its launch in April 2010, the main business of the listing was precision sheet metal and precision castings. It has since continued to expand into LED, LCM, flexible circuit boards and other fields. Although it has pursued the business of 'tall', it has achieved a net profit. On the other hand, there is little to be expected. Today, Dongshan Precision plans to acquire in cash the relevant entities of the PCB manufacturing business of the listed company Flex Ltd. (Flextronics). The transaction value of the underlying transaction is US$292.5 million (approximately RMB 1.9 billion). However, the net profit of Dongshan Precision was only RMB 519 million last year. The current market capitalization is RMB 27.84 billion, and the PE is as high as 53 times. It is difficult to imagine that it is necessary to synchronize the transaction to complete the acquisition of the two major targets.
The other one is the global smart phone ODM leader Wentai Technology, which successfully stripped its original real estate business at the end of last year. After introducing strategic partners such as Yunnan City Investment and Wu Yuefeng Capital, Wentai Technology entered a fast-track development. However, ODM industry risks Large, low gross profit, Wentai Technology's net profit in 2017 was between 310 million yuan and 340 million yuan, and its current market capitalization was 18.23 billion yuan. According to Orient Securities estimates, Wentai Technology's 2018 earnings per share was 1.23 yuan, corresponding to 29 times of 2018. PE.
Taken together, Tat Technology PE is currently 25 times, Dongshan Precision PE 53 times, Wingtech PE 29 times. However, if the A-share is re-listed, the higher the PE, the greater the overall revenue will be diluted, the semiconductor semiconductor investors The return will also be reduced accordingly, so the higher the PE value, the more unfavorable the company relative to the market value.
Listed companies with lower A-share listed PE value are preferred
According to experts from the professional investors, we know that in fact, the higher the value of PE, the higher the value of PE, the more it will damage the interests of the original investor, and the more it will affect the future operations of the company. Mergers and acquisitions of listed companies are inconsistent with other financial investors. It is because investors are mainly assessing the appreciation space of their investments in Anshen Semiconductor. They are inconsistent with the interests of listed companies participating in the reorganization. Listed companies are included in the reorganization. The assets of the world support its stock price and market value management, which will bring direct conflicts of interest.
As a result, it will inevitably lead to conflicts of interest and make reorganization difficult. More seriously, the Hefei Guangsui Fund publicly transfers 70% of the shares held by it, attracting many shareholders and non-shareholders, even if they buy The shares sold by the Hefei Guangxing Fund do not mean that they can acquire reorganization. Because the entire process of competition is complicated, it may even ruin the current development of Ansi Semiconductor.
Therefore, if A shares are re-listed, such listed companies with high PE value and high market value may not be wise for Anshen Semiconductor. A listed company with a small A-share PE value may be re-listed to bring more benefits to investors. Good income.
The overall return is high, Hong Kong stock market is the best choice
However, fortunately, if Ansemi Semiconductors's listing in Hong Kong is different from the listing of A-shares, it will be different. As the overall valuation of the Hong Kong stock market gradually rises, the valuation of integrated circuits and electronic information companies is currently 25-30 times. Ansemi Semiconductors is a global leader in the industry, PE may reach 30 times, and there is no dilution problem.
On the Hong Kong stock market, Ansa Semiconductor can also be listed in an IPO or restructured or backdoor. Professional investment sources stated that the Ansi Semiconductor Hong Kong stock IPO will be about 20-30% lower than the A-share IPO valuation, and the overall yield will be similar; but if it is not an IPO, Instead, the overall investment income will be diluted to a certain extent by restructuring or backdoor listing. This depends on the market value of the other company and the current PE value.
In addition, from a comparative point of view, from a deterministic and time perspective, the re-listing of Hong Kong stock will take about six months to complete the listing; while the A-share re-listing still has various uncertainties for approval, and it will also increase the number of foreign investors due to changes in the control. The requirements for approval, in the current complex international environment, not only will the approval time be longer, it may also fail to pass the approval and lead to reorganization failure, and may even take more than a year of restructuring to advance again. Overall, Hefei The core fund's public transfer of its holding 70% shares in Anshen Semiconductor has attracted competition from several shareholders and non-shareholders. If the A-shares are listed on the reorganization, investors, management and stakeholders may find it difficult to reach a consensus. The return on investment and overall return on Hong Kong stocks are even more dominant, and the success rate is even higher. What is a better choice? After all, OmniVision Beijing Haowei is a lesson.