'Informed sources disclosed to the CBN reporter that this is actually a misunderstanding in the market. In fact, the industrial wealthy union is still in the process of making inquiries, and the raised capital is likely to be higher than 27.3 billion yuan, and the price-earnings ratio is also likely to be higher than 15 times.'
After Foxconn Industrial Internet Co., Ltd. (hereinafter referred to as 'Industrial Fulian') (601138.SH) obtained the listing approval, it submitted an updated prospectus on the Shanghai Stock Exchange. The 'king of foundry' Industrial Fulian was successful this time. The IPO of Shaoguan, its unique issuance model and valuation, introduced strategic investors to lock in for a certain period of time, which triggered investors' strong concerns.
If the market expects that the amount of investment projects it raises will be less than 27.3 billion yuan, the Industrial Fulian is about 15 times the P/E ratio for the issuance of IPO financing. However, informed sources disclosed to the First Financial reporter that this is actually a misunderstanding in the market. In fact, the industrial wealthy union is still in the process of making an inquiry, and the raised capital is likely to be higher than 27.3 billion yuan, and the price-earnings ratio is likely to be higher than 15 times.
The long-term lock-up of strategic investors is a unique feature of the Industrial Fulian's issuance, which also allows the Industrial Fulian to reassure investors and the investment bank CICC as an industrial rich sponsor (03908.HK). , made a careful arrangement for the release.
The issue is still in the inquiry, the valuation is still uncertain
From the current point of view, most people in the market believe that if the total amount of funds raised is 27.253 billion yuan, and 1.97 billion shares are issued, the company's issuance price is estimated to be 13.83 yuan, according to the 2017 consolidated income statement of 0.95 yuan per share. For calculations, the current P/E ratio of the Industrial Fulian is less than 15 times; and according to the net asset of 1.59 yuan per share, the P/B of the issuance is about 8.7 times. The prospectus stated that 'pre-issuance earnings per share (according to the company's 2017 After being audited, the net profit attributable to shareholders of the parent company before and after deducting non-recurring gains and losses divided by the total share capital before issuing is calculated at 0.90 yuan. According to this calculation, the issuance P/E ratio is approximately 15.37 times.
However, such simple calculations are misunderstood by the market for the prospecting materials. The IPO of the Industrial Fulian Group is completely different from the common IPO projects in the past. Whether it is more marketable pricing methods or the introduction of strategic investors, there is a lock-in period. , Reminiscent of the operation of the large-scale IPO project in the Hong Kong market.
Some investment bankers told the First Financial reporter that, unlike the pre-release manuscript, the latest announcement shows that the raised funds exceed the demand of the above eight major projects and will be used to supplement working capital. Although the latest announcement has disclosed the eight major projects The required amount of the project is approximately 27.3 billion yuan, while the demand for working capital has not been announced, and the current issuance method adopts a price inquiry distribution method. The current subscription price has not been determined, so the total amount of funds ultimately raised remains to be solved. Times, that raised funds may greatly exceed 27.3 billion yuan.
In other words, the current number of 1.97 billion shares raised will not change, and the final issue price will be higher than 13.83 yuan. On Friday, the contents of some clauses of the “Administrative Measures on Securities Issuance and Underwriting” were formally solicited for public comment. Increased flexibility of pricing methods, allowing companies to choose their own pricing methods. This also makes Foxconn pricing uncertainty there is a large, the investment bank said.
'The specific amount of raised funds will be finalized according to the actual needs of the company, the overall situation of the capital market and the specific requirements of the regulatory authorities. 'The Industrial Fulian emphasizes in the prospectus.
The industrial wealth raising funds are mainly focused on the construction of industrial internet platforms, cloud computing and high-performance computing platforms, efficient computing data centers, communication networks and cloud service equipment, 5G and internet of things interconnection solutions, and intelligent manufacturing new technology research and development applications. Smart manufacturing industry upgrades, smart manufacturing capacity expansion and other eight major projects to invest, and additional working capital.
30% subscription is a strategic allotment. Reduce secondary market shocks
One of the highlights of this issue of IndustrialFuture is the introduction of strategic allotment. IndustrialFuture disclosed in its letter of intent for prospectus that it intends to publicly issue approximately 1.97 billion shares of shares, and the number of shares issued will account for 10% of the total share capital of the company after issuance; The strategy will be adopted through strategic placement, offline distribution and online issuance, of which the initial strategic placement of shares represents approximately 30% of the total number of shares issued, and the number of shares issued is 590 million shares.
The difference between the final number of strategic placements and the number of initial strategic placements will be reversed according to the 'callback mechanism' principle. The strategy is locked up for a maximum of 3 years and a minimum of 1.5 years. Of the shares allocated by this strategic investor, 50% The lock-up period for the shares is 12 months, and the lock-up period for 50% of the shares is 18 months. Among them, in order to reflect the intention of strategic cooperation with the company, some investors may voluntarily extend the lock-up period of all their shares to not less than 36 months.
Article 14 of the "Measures for the issuance, underwriting, and management of securities" stipulates that if the number of IPOs is more than 400 million shares, the stock may be placed to strategic investors. The issuer should sign a placing agreement with the strategic investor in advance. Issuer and owner. The underwriters shall disclose the selection criteria for strategic investors in the issuance announcement, the total number of shares placed to strategic investors, the proportion of shares issued this time, and the holding period. Strategic investors shall not participate in offline inquiry, and shall The share holding period promised to obtain this placement will not be less than 12 months. The holding period will be counted from the day when the shares of this public offering are listed. In the A-share market, the latest strategic placement in the IPO occurred in 2014. In January, Shaanxi Coal Industry (601225.SH), in the IPO fundraising, introduced 50% of the total issuance volume of strategic allotment.
A sponsor representative in Shenzhen told the First Financial reporter that for strategic investors who are locked in, it is actually a certain amount of liquidity at the expense of obtaining enough shares to subscribe; on the other hand, this can reduce the number of large new stock pairs. The impact of market funds, the current secondary market is still a stock game situation, the capital aspect is not very satisfactory.
Wen Tianna, Chief Executive Officer of Boda Capital, told the First Financial reporter that the approach of Industrial Fulian is somewhat similar to the introduction of cornerstone investors for large new shares in the Hong Kong market. There will be a certain period of lock-in arrangements. In the first half of the listing period, all strategic investors will buy shares. The price will be roughly the same as the new share price. According to the IPO cornerstone investors in the Hong Kong market, 90% of the new shares in the international placement account for 90% of the total funds raised, of which 34% may be cornerstone investors. Investors should also consider the interests of public investors.
New economy warm air blowing
'The issuer’s financial indicators presented low gross profit margins, high net asset yields, and high asset-liability ratios. 'In the announcement of the review results of the 41st meeting of the ISRC 2018, such questions were posed to the Industrial Fulian, and The requirement of 'combining the three expenses, asset turnover rate, etc., explains the reasons for low gross profit margin, high net return on assets, and impact on the issuer's profitability'.
According to the prospectus, during the reporting period, the issuer’s consolidated gross profit margin remained relatively stable. In 2015, 2016 and 2017, the issuer’s consolidated gross profit margin was 10.50%, 10.65% and 10.14%, respectively; the issuer’s weighted average net asset income The rate (after deducting non-recurring gains and losses) was 26.93%, 20.56% and 18.97%, respectively. In the end, how did the industrial wealthy alliance achieve this?
A higher inventory turnover rate may be an important factor for success. In 2017, the industrial wealthy union reached 9.94, which was much higher than the 6.54 average value of listed companies in other listed companies listed in other prospectuses. These companies include Orpheus Technology (002456.SZ). Flextronics (FLEX.O), etc. 'Because the company continues to improve its supply chain management capabilities, globally coordinated and coordinated production, and high level of inventory management, inventory turnover is slightly higher than the average level of listed companies in the same industry, and Stable trend. '
Although the main business is still the manufacturing industry, Industrial Fulian has repeatedly emphasized its own Internet properties. 'The company is a leading global provider of communications network equipment, cloud service equipment, precision tools and industrial robots to provide customers with industrial products. Internet-based platform is the new form of intelligent manufacturing services for electronic equipment products. ' 'The company is committed to providing enterprises with integrated solutions for automation, networking, platformization, and big data-based technology services, leading the transition from traditional manufacturing to smart manufacturing. And based on this as a basis to build a new ecology of the "Advanced Manufacturing + Industrial Internet" cloud computing, mobile terminals, Internet of things, big data, artificial intelligence, high-speed networking and robotics as a technology platform.
According to Peng Tai, an analyst at Huatai Securities, the Industrial Fulian will only use 36 days from the filing date to break the previous record, showing that the regulatory authorities attach importance to and support the 3C manufacturing industry. The industrial wealth alliance and millet's progress in the listing process is expected to boost The pessimistic sentiment caused by the decline in sales of smart phones in China had previously been reported. China Merchants Securities analyst Zhang Xia said that the CSRC has repeatedly emphasized the support for new technologies, new industries, new formats, and new models, and recently the '360 Backdoor The IPO of Jiajie', 'Foxconn Industrial Internet' is even more aroused by the market.