The big fund has invested in 23 integrated circuit listed companies

Since its establishment in 2014, the Big Fund has accumulatively invested in 23 listed companies in the chip field in a variety of ways, involving A-share listed companies with a total market value of about 360 billion yuan.

Investing in Wanye Enterprise, Taiji Industry, and Guoke Micro to establish an investment enterprise... Recently, the National Integrated Circuit Industry Investment Fund (hereinafter referred to as 'big fund') has been operating continuously. According to the statistics of the "Red Weekly" reporter, it was established in 2014. Since then, as of July 27, the first phase of the big fund has passed the fixed increase, agreement transfer, cross-border mergers and acquisitions, capital increase, etc., and has directly invested in 23 listed companies in the chip field, including 19 A-share listed companies and A-share listed companies. The market value is as high as 360 billion yuan.

In this regard, Ouyang Wu, chairman of Guizhou Huaxin Integrated Circuit Industry Investment Co., Ltd. said that every development of the industry has a period of 5 to 10 years. If there is no intervention at this time, the difficulty of entering the industry in the future is very difficult. However, in his view, it is also worthwhile for the big fund to focus its investment on the equity investment model. The big fund should dig deeper into some early-stage enterprises with technology, and use the power of capital to quickly generate these products.

From the secondary market, the share price of A-share listed companies joining the big fund luxury 'friend circle' is quite different: some have sang all the way, such as Changchuan Technology, North Huachuang, Ninestar and other companies to hold the latest market capitalization ( As of July 27th closing, the investment amount has increased several times; some are 'not satisfied with water', such as the latest stock market value of the big fund in Huiding Technology, Tongfu Microelectronics, Jingfang Technology, Jacques and other companies. Compared with the amount of investment, there is a different degree of 'shrinking'. However, in the eyes of the industry, as a long-term strategic investor, the big fund is not concerned about whether the company is profitable in 3 to 5 years, as long as it determines that the industry is on the rise and invests in the industry. In combination, the risk of investment is relatively limited. The probability of making money in the long run is still relatively large. In addition, professional investors also remind investors that gold mining in listed companies with large funds is the most important thing to analyze whether chip companies can form technology. High barriers, whether there is a gradual replacement of foreign similar enterprises, can not blindly follow the wind investment.

1600 billion chips 'national team' layout emerges

On July 17, the Wanye Enterprise, which is mainly engaged in real estate business, issued a restructuring announcement. According to the announcement, Wanye Enterprise intends to transfer 56.431 million shares (accounting for 7% of the total share capital) to the big fund agreement. The shares of the company are to play a guiding role in supporting the development of the national integrated circuit industry by the large fund, and support the Wanye enterprises to acquire Kaishitong and transform into an integrated circuit equipment and materials company. According to the rough statistics of the "Red Weekly" reporter, this should be Since the establishment of the big fund, it has included the 23rd listed company in the chip field.

On September 24, 2014, the large fund was established with an initial scale of 120 billion yuan. The current scale has reached 138.7 billion yuan. From the perspective of capital contribution structure, the big fund is a veritable 'national team'. From the public data, as of the end of 2017 The large fund has invested 67 projects in a total effective decision-making process. The accumulated investment commitment amount of the project is 118.8 billion yuan, and the actual investment is 81.8 billion yuan, accounting for 86% and 61% of the total fundraising in the first phase. According to the "Red Weekly" reporters, the public statistics are compiled. As of July 27, the first phase of the big fund directly invested in 23 listed companies in the chip field, including 19 A-share listed companies, 3 Hong Kong-listed companies, and 1 US-listed company. It is worth noting that 19 A-shares were listed. The company's closing market value as of the 27th was as high as 362.706 billion yuan.

The analysis shows that the investment of the major fund in the relevant listed companies covers the entire industrial chain of integrated circuit design, manufacturing, packaging and testing, equipment, materials, etc. Data shows that as of the end of 2017, committed investment, chip manufacturing, design industry, sealing The measurement and equipment materials industry accounted for 65%, 17%, 10%, and 8% respectively. As far as individual stocks are concerned, the big fund companies are the leaders in their respective segments. For example, the North China investment in chip equipment field. Chuang, which is the largest semiconductor equipment company in China; for example, Sanan Optoelectronics, which is invested in chip manufacturing, is the world leader in LED chips.

In Ouyang Wu's view, every round of development in each industry will undergo a process from brewing to climax. There is a window of 5 to 10 years during this period. If the capital in the window period does not enter the industry, then think again. It is very difficult to enter this industry.

In fact, looking back, in the era of information economy, whether it is the Internet, optical communication or Internet of Things, the foundation is integrated circuits. The development of China's integrated circuit industry is unsatisfactory. First, because of the understanding of integrated circuits in the past structural adjustment and economic transformation. There are deviations, which are regarded as problems in the industrial economic sector, rather than the basic support of the information economy. Second, domestic funds (especially state-owned funds) are risk-averse funds. At the beginning of the rise of the integrated circuit industry, they did not pay attention to it. Third, the so-called high-tech enterprises invested by domestic capital in the past. The company has a truly original core technology, but it lacks the technical breakthrough and overall layout of the system.

The big fund has a multi-pronged approach to help enterprises

The 100 billion-scale national integrated circuit industry investment fund plays the dual role of industrial support and financial investment: On the one hand, the large fund investment field covers the entire industrial chain of integrated circuits, accelerating the domestic integrated circuit research and development process; Through cross-border mergers and acquisitions, fixed increase, agreement transfer, capital increase, joint venture company and other ways to invest, optimize corporate shareholding structure, improve business efficiency and management level.

For example, in December 2014, Changdian Technology signed an agreement with the big fund, Core Power Semiconductor, to obtain a $300 million boost from the big fund through a three-tier equity structure, thereby completing the acquisition of Singapore Star Star Jinpeng by 780 million US dollars, completing the 'snake. The swallow's acquisition, entering the first echelon of global semiconductor packaging testing.

According to the data, before the merger, Xingke Jinpeng is the world's fourth largest packaging and testing factory, and its volume is almost twice that of Changjiang Electronics. On June 4 this year, Taiji Industrial announced that the company's controlling shareholder industry group passed the public. The transferee will transfer the 130 million shares of the company to the big fund, accounting for 6.17% of the company's total share capital. After the transfer transaction is completed, the big fund will become the third largest shareholder of Taiji Industry. The announcement shows that Taiji Industry is engaged in Packaging and testing of semiconductor products, module assembly, and after-sales service. The above business is in line with the investment direction of the National Fund.

According to a report released by Zhiyan Consulting, China's semiconductor sales reached US$131.5 billion in 2017, which is close to one-third of the world. But behind the development boom, China's huge trade deficit in the field of integrated circuits, investment in capital and R&D There are still major gaps between the two sides and the situation that cannot be ignored.

According to statistics from the semiconductor industry, in 2017, China imported 377 billion integrated circuits, with an import value of US$260.1 billion and an export value of US$66.9 billion, but only a quarter of the import value. The integrated circuit surpassed crude oil and became the largest. Imported products. 'In many core integrated circuits such as server MPU, personal computer MPU, FPGA, DSP, etc., China is still unable to achieve chip self-sufficiency. 'The chief economist of Evergrande Ren Zeping analyzed in the latest research report. In his view External dependence is only a relatively weak external performance of China in the core chip field. Its essence is the lack of sufficient, long-term capital investment, R&D investment and accumulation in the core industrial chain of integrated circuits.

For example, in 2017, US chip giant Intel's R&D spending reached US$13 billion, and capital expenditure is expected to reach US$12 billion. Only R&D spending is close to the sum of all semiconductor companies in China. Qualcomm, Broadcom, NVIDIA and other chips are ranked globally. The three design manufacturers are using about 20% of the sales revenue for R&D investment. In comparison, the representative of the domestic integrated circuit manufacturing industry, Sanan Optoelectronics, invested a total of 532 million yuan (US$78 million) in 2017, accounting for the total camp. The proportion of revenue is 6.34%, and the proportion of R&D investment capitalization is 76.22%.

In addition, a person in charge of a private equity institution in China also disclosed to the reporter of "Red Weekly": 'As far as the information we know, China's mobile phone chip field, in addition to the domestic Huawei Hisilicon chip in the high-end models have made a breakthrough, so far domestically produced Brand mobile phone chips basically do not use chips designed by domestic manufacturers. '

It is worth noting that the first phase of the big fund investment is mainly equity investment. But in Ouyang Wu's view, in the field of integrated circuits, the real need for financial support is the early stage of technological innovation. 'The big fund is going to invest in the second phase. Give special attention to intellectual property and human capital. Learn about the management of investment knowledge and human capital. Compared with foreign investment, there can be a large amount of intellectual property (IP) in the chip industry chain, in the development cost of integrated circuit products, intellectual property rights. The proportion is very large, and the importance is also very prominent. The second phase of the big fund investment must make a breakthrough in this aspect. For the second phase of the big fund project, if there is no breakthrough in the investment of intellectual property, the manufacturing and equipment will still be used. The factory is the mainstay, and then it loses the role of setting up a large fund. ' He also said, 'The key to investing in innovative industries such as high technology is to invest. If investors can't let the scientists, or entrepreneurs, have enough motivation to go. Innovation, it doesn't matter how much it costs.'

Chip companies need to be technically successful in order to break through

In Ouyang Wu's view, the big fund is going to invest in projects that have a leading role in the transformation of the entire economy and the establishment of a new economy, but this kind of investment is not concerned about whether the company is profitable within three to five years. In his view, the future of the chip In the chip design. 'According to the current investment trend, the chip industry chain factory will soon be overcapacity like the factory in the industrial economy era. Therefore, when the manufacturing capacity reaches a certain scale, there must be a design industry as a support.'

From the performance of the secondary market, the investment of big funds in A-share listed companies has risen and fallen. According to the statistics of the “Red Weekly” reporters, as of the close of July 27, the latest market value of the big fund holdings is compared with the investment quota. Changchuan Technology has the largest value-added, up to 457.5%, followed by North China Huachuang's value-added by 202%, Nasta's value-added by 162.4%, and Zhaoyi's innovation by 80.9%. Guoke's micro-value added by 14.3%. At the same time, Jingfang Technology The fund's latest stock market value is 'shrinking' 28.97%, Huiding Technology 'shrinking' 22.36%, Tongfu Micro-power 'shrinking' 11.1%. Analysis can be found that profitable enterprises are concentrated in the design and equipment field, testing and testing And materials are the focus of poor performance companies.

It should be noted that the public information shows that the total fund investment plan is 15 years, divided into investment period (2014-2019), payback period (2019-2024), extension period (2024-2029), which means At present, the current fund is still in the investment period and has not yet entered the payback period. 'In fact, as long as the industry is in a prosperous trend, the portfolio investment in the industry is relatively limited, even if the investment company A does not Make money, and company B is making money. In the end, several investment projects add up to make money. 'Ouyang Wu said.

'The big fund only provides financial support for listed companies. In the context of technology, the entry of large funds can bring huge market and directly help the company's products penetrate downstream, because the downstream enterprises of the chip rarely try new production products. However, in the listed companies in which large funds are stationed, the most important thing is to analyze whether the technology of chip companies can form high barriers, and whether there is a gradual replacement of similar foreign companies. 'The above-mentioned private equity leader said.

He analyzed that North China Huachuang's stock price surge in the past three years has a huge relationship with the establishment of large funds. The large funds have provided huge market and capital for enterprises. According to the data, in 2015, the company's predecessor Qixing Electronics' sales of integrated circuit manufacturing equipment was only 300 million yuan, gross profit margin 25%. At the end of 2015, the acquisition of Northern Microelectronics Co., Ltd. (M&A valuation is only 930 million yuan, when the income was only 266 million yuan, with a technology mosquito company) and after the expansion of mergers and acquisitions, 2016 company integrated circuit Manufacturing equipment revenue jumped to 990 million yuan, with a gross margin of 37%. In 2017, the company's integrated circuit equipment revenue was 1.435 billion yuan, with a gross margin of 33%.

In addition, he also said that in terms of investment opportunities, the investment opportunities of equipment are relatively clearer. The general performance of equipment companies is more eye-catching. First, from the investment planning of China's 12-inch wafer fab, it mainly involves 8 companies. The planned investment amount of the project is about 782.13 billion yuan. Although the commissioning time of most projects has not yet been determined, the corresponding equipment investment is huge. It is estimated that the domestic optical wafer manufacturing equipment (excluding manufacturing, packaging testing, etc.) market from 2018 to 2020 The space growth rate is 157%, 94% and 31% respectively, and equipment demand growth is faster. Therefore, the performance of enterprises such as North Huachuang and Changchuan Technology has maintained high growth.

In contrast, in the field of packaging and chip design, the packaging and testing industry is difficult to make profit, because China's current stage of testing and testing is mainly low-end, with low gross profit and strong business competition. For example, Changdian Technology's gross profit margin in 2017 is only 11%. The gross profit margin of Tongfu Microelectronics is only 14%. The technology can't break the stock price and it is difficult to rise. Secondly, the performance of listed companies in the chip design industry is different. Because the mobile functional chips will be eliminated or left behind, the company's business will fall sharply. Technology's sharp decline in performance since the first quarter of this year is typical of it. However, the stock market and the high-power chip stocks with extremely high industry barriers are firm. 'The person in charge said.

In addition, it is worth noting that, from the announcement of the listed company, the large fund has settled in the company's 'reports', such as the first listed company Nasda, where the big fund settled, and released in the morning of July 12, 2018. The annual performance forecast announcement announcement, the company's semi-annual performance in 2018 was raised from 110 million yuan to 200 million yuan to 300 million yuan to 380 million yuan, achieving a turnaround. The reason for the performance adjustment is mainly the continuous improvement of the company's operating performance, exceeding expectations. The exchange rate fluctuated greatly, which had a large positive impact on profits. In addition, the performance of North Huachuang and Naiwei Technology will double in the first half of this year, and the performance is expected to increase by 100%-150% and 70%-100% respectively.

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