Penetrating large fund's cutting-edge manufacturing capital path: 100 billion funds cover the entire industry chain of 13 integrated A-share companies

With the gradual landing of the long-term technology growth plan, the National Integrated Circuit Industry Fund is expected to become the largest shareholder of A-share listed companies for the first time. "Since the National IC Industry Fund has been a financial investor, it will become the largest shareholder through the issuance of shares, and it will also be a financial investment." Zhu Zhengyi, director of the Changjiang Electronics Technology Co., told the Securities Times and e.

This is just a microcosm of the expansion of the A-share layout of the National Integrated Circuit Industry Fund. Since its establishment in September 2014, the 100 billion-scale National Integrated Circuit Industry Fund (hereinafter referred to as the “Big Fund”) has played a dual role of industrial support and financial investment: on the one hand, large fund investment projects cover integrated circuit design and manufacturing. The whole industry chain, packaging and testing, equipment, etc., help a group of leading companies to enter the international first echelon; on the other hand, through participation in overseas acquisitions, agreement transfers, IPO pre-increment, fixed-income investment, etc. After two years of deep cultivation, the A-share capital map has become a climate.

Preparation for the second phase of financing

Securities Times·e company reporter was informed that the current large fund is preparing for the second phase of financing, the estimated size of more than 100 billion yuan. However, on October 25, Ding Wenwu, the president of the big fund, told the Securities Times·e company reporter that the second phase has not yet started fundraising.

Ding Wenwu, president of the big fund, said in an interview with the media that the actual fund raised in the first phase of the big fund reached 138.72 billion yuan, exceeding the set target. After three years of operation, as of September 20, 2017, the large fund has made a total decision to invest 55 projects involving 40 integrated circuit companies, with a total commitment of 100.3 billion yuan, and the committed investment amount accounts for 72% of the first phase of raised funds. It is 65.3 billion yuan, which is nearly half of the funds raised in the first phase.

The data shows that the background of large fund shareholders is strong. In addition to financial and social security funds, there are three major operators, China Electronics, China Electronics and other electronic information companies, as well as local investment platforms and investment in semiconductor industry such as Huaxin Investment and Wu Yuefeng. mechanism. According to the scale, the total investment schedule of the large fund will reach 15 years.

"At present, the investment of the big fund is very good, eliminating many doubts from the industry and getting a lot of recognition." Gu Wenjun, chief analyst of Xinmou Research, told the Securities Times·e company reporter that the establishment of the big fund has stimulated local and social capital. The attention and investment of semiconductors also played a good economic benefit and found a good model for the state to support the development of the industry.

According to Tianyue statistics, as of October 25, the big fund has become a major shareholder of 38 companies, and the investment time is concentrated in 2015 and 2016. According to the announcement disclosed by the listed company, the total assets of the big fund in 2016 were 65 billion yuan, and the net profit was 2.131 billion yuan, a year-on-year increase of about 130%.

Will cover 13 A-share companies

According to the introduction of Ding Wenwu, the president of the big fund, the current commitment to investment is 65% for the chip manufacturing industry, 17% for the design industry, 10% for the packaging and testing industry, and 8% for the equipment and materials industry. Specifically, the big fund has invested in SMIC, Huahong Group, Yangtze River Storage, Silan Micro, etc. in the manufacturing field, and invested in Jingjiawei, Guokewei, Beidouxingtong, etc. in the design field, and the equipment field covers the north. Huachuang, Changchuan Technology, Zhongwei Semiconductor, Shenyang Tuojing Technology Co., Ltd., etc., invested in Changdian Technology, Huatian Technology, Tongfu Microelectronics and so on.

According to the statistics of the Securities Times·e company reporters, except for the project investment, only the direct equity investment, the large fund has covered 8 A-share listed companies and 2 Hong Kong stock companies. At the same time, according to the plan, the big fund will also obtain equity through participation in the issuance of six companies, and the current large fund will settle in 13 A-share companies.

Among the many A-share companies, the current large-capital holdings of Guoke Micro shares accounted for the highest proportion of 15.79%, ranking second largest shareholder, and the shareholding ratio of Sanan Optoelectronics, Beidouxingtong and Zhaoyi Innovation also exceeded 10%. In addition, it holds 9.54% of Changjiang Electronics Technology Co., Ltd., and holds 7.5% of the shares in North Huachuang and Changchuan Technology, and 4.29% in Ninestar. In the Hong Kong stock market, the big fund also holds 15.91% of the shares of SMIC and 9.89% of the shares of China Micro Technology.

The big fund will also participate in the issuance of 6 companies including Changjiang Electronics Technology, Tongfu Microelectronics, Wansheng, Navi Technology, Jacques Technology and Jingjiawei. According to the plan disclosure, if the financing of the investment fund is not considered, the proportion of the shares held by the large fund will be increased to 19%, and the shares of Tongfu Microelectronics will be 15.7% (180 million shares) and the shares of Wansheng will be 7.41%. Shares (299.64 million shares), Jacques Technology 5.73% shares (265.18 million shares).

Specialization will become the mainstream

For A-share companies, large funds are simultaneously promoted in the primary market and the secondary market. The methods are diverse, and the multi-path layout of the IPO before the capital increase, agreement transfer, fixed increase, etc.

“Because each company has different claims for funds, and the demand for capital is different at each stage. Some are long-term investments, some are short-term transitions; some are lack of capital, and some are new projects lacking capital for research and development. So big funds are based on each company. Different appeals provide differentiated, targeted and accurate investment, which is more flexible and effective.” Gu Wenjun was greatly appreciated by the big fund when he was interviewed by reporters.

The common investment method of big funds is to participate in the integration of the same industry through fixed-income listed companies and fill in shortcomings. According to statistics, among the 13 A-share companies covered by the current large fund, the large fund participates in or will participate in the fixed-income scheme of 10 companies.

In recent years, the integration of the international semiconductor industry has been on the rise, and some overseas high-quality industry leaders have become the investment targets for relevant enterprises to make up for the short-board of domestic industries and advanced international advanced processes. In the process, the large fund has implemented different programs to help A-share companies to acquire overseas. The main mode is to leverage the acquisition through the “listed company + PE” model, and then inject assets through debt-to-equity swaps, subscriptions, etc. Become a major shareholder of listed companies.

For the first time, the big fund showed its talents in the acquisition of Singapore Xingke Jinpeng in the long-term technology of 780 million US dollars. As the world's fourth largest packaging and testing plant, Xingke Jinpeng is almost twice as powerful as Changjiang Electronics. In December 2014, Changjiang Electronics Technology signed an agreement with the big fund and the core semiconductor, first through the three-tier equity structure, and obtained a large fund of 300 million US dollars to help complete the "snake swallow" type acquisition, advanced global semiconductor packaging test An echelon.

After the completion of the tender offer in October 2015, according to the “Debt-to-equity swap agreement”, the large fund will convert the long-term shareholder's loan to Changchun Xinpeng. On April 29, 2016, Changjiang Electronics Technology Co., Ltd. issued a draft of a fixed increase of RMB 1.991 billion for the acquisition of 29.41% of Changdian Xinke held by the Big Fund and 22.73% of Changdian Xinpeng, thereby including Xingke Jinpeng as an indirect wholly-owned capital. After the completion of the fund-raising, the large fund holds 9.53% of the shares of Changjiang Electronics, second only to the core semiconductor and the former major shareholder Xinchao Group. In 2016, Changjiang Electronics Technology became the world's third largest packaging and testing plant with a market share of 10%.

The big fund did not stop at the third largest shareholder. On September 30 this year, Changjiang Electronics Technology Co., Ltd. re-issued a fixed-income plan to raise 4.55 billion yuan to invest in the company's main business and repay bank loans. Among them, the big fund plans to spend no more than 2.9 billion yuan to participate in the subscription, the shareholding ratio will rise to 19%, ranking first largest shareholder.

Regarding this change, Changzheng Science and Technology Co., Ltd. Zhu Zhengyi told the Securities Times·e company reporter that the National IC Industry Fund has entered the company and has long-term positive significance for the company's development. He pointed out that "the industry fund has always been a financial investor, this time will become the largest shareholder, but also a financial investment. The fund as the largest shareholder, which is a relatively common phenomenon among global semiconductor listed companies." Wang Xinchao, chairman of Changdian Technology, remained unchanged. The shareholding ratio of the three major shareholders was close, and the three major shareholders nominated two non-independent directors to the company. The company still has no actual controller.

The big fund also “specialized” participated in the overseas acquisition of Tongfu Microelectronics and planned to further inject into the listed company. In October last year, Tongfu Microelectronics announced that it intends to issue shares to the big fund to acquire the 49.48% stake in Furunda and the 47.63% stake in Tongrunda. The transaction consideration was 1.921 billion yuan. Both companies are listed companies and large funds to acquire the holding platform of American Superstar Semiconductor (AMD) Suzhou and Penang. At that time, the acquisition transaction price was nearly doubled at a premium of nearly 400 million US dollars to cut into the world. Advanced chip packaging and testing technology. In the same way, according to the agreement, after Tongfu Micro-Electronics completed the acquisition of assets such as Tongfu Chaowei Suzhou, the large fund will convert the equity of the investment platform held by the company into the equity of the listed company. Regardless of the matching fundraising, the big fund will hold a 14.65% stake in Tongfu Microelectronics.

In the weakest equipment chain of the semiconductor industry chain, the large fund has taken the opportunity to participate in the reorganization of the seven-star electron absorption and merger of the northern microelectronics. The two companies were originally the top ten semiconductor equipment manufacturers in China, among which North Microelectronics is a leading semiconductor etching and deposition equipment company. On December 26, 2015, Qixing Electronics announced that it will issue shares to absorb the merger of Northern Microelectronics. At the same time, it will raise matching funds and introduce large funds through fixed increments. In August 2016, Seven Star Electronics completed its restructuring and changed its name to North Huachuang.

In the field of integrated circuit navigation chips, large funds are also involved. In September 2015, Big Dipper issued a plan to increase its shareholding. It plans to raise 1.68 billion yuan to add Beidou's low-power and high-precision chip projects. Among them, the big fund has taken the lead and subscribed for 1.5 billion yuan. In July 2016, Big Dipper completed its non-public offering, and the big fund held 11.46%.

Long-term investment returns are good

The big fund has been intensively laid out since 2015, and the current investment income is good.

As a leading supplier of high-integration, ultra-low-power high-definition surveillance chips and solutions in China, Guoke Micro was funded by a large fund of RMB 200 million in May 2015. After being changed to a company limited by shares, in December 2015, Guoke Microelectronics won a capital increase of 200 million yuan, equivalent to holding 17.447 million shares of Guokewei. After the listing in July this year, the company's share price has risen more than five times, up to 65.25 yuan / share. The latest market capitalization of this $400 million investment has exceeded 900 million yuan.

Semiconductor equipment supplier Changchuan Technology also received a large fund increase in 2015. In June 2015, the big fund participated in Changchuan Science and Technology's first capital increase, and subscribed for a new registered capital of 5,715,200 shares for 40 million yuan. After the listing this year, the shareholding ratio was diluted to 7.5%. At present, the latest market value of this investment of the big fund is more than 300 million yuan.

In addition to the pre-IPO capital increase, Zhaoyi Innovation, which was recently included in the large fund map, acquired equity through agreement transfer. On the evening of August 28, Zhaoyi Innovation released a series of equity changes, and enlightened Zhonghai and other three shareholders to transfer most of the shares through agreement transfer. The takeovers were the big fund and the Shaanxi Guotou·Wealth 28 single fund trust. Among them, the large fund received a total of 22.295 million shares of Zhaoyi Innovation, accounting for 11% of the company's total shares, the transfer price was 65.05 yuan / share, the total price of 1.45 billion yuan. The time of the big fund's stock purchase was accurate. At that time, due to the multiple negative effects, the stock price of Zhaoyi Innovation was at a low level. After the big fund took over, the stock price of Zhaoyi Innovation began to rise rapidly. At present, the book of the big fund is still nearly doubled.

Of course, the involvement of big funds in listed companies' stimulus to stock prices is not always immediate. Take Sanan Optoelectronics as an example. When the big fund took over the equity transfer of Sanan Optoelectronics in 2015 and participated in the fixed increase, its investment price exceeded 22 yuan. Although it has a large discount to the market price at that time, it is affected by the market environment. In 2016, Sanan Optoelectronics' stock price fell below 18 yuan several times, and its stock price began to stabilize and rebound until the end of 2016.

Based on the closing price on October 25, the big fund, as a shareholder of 8 companies, held a stock market value of 22.285 billion yuan. If the issuance is implemented as scheduled, by then, the big fund will become an important shareholder of 13 companies, and the stock market value will continue to climb.

"As the executor of the national semiconductor strategy, the focus of the big fund investment will be in line with the direction of industrial development, the most import substitution space but relatively weak." Guoyuan Securities electronics industry analyst Chang Gefei to Securities Times · e company The reporter said, "The strength of the large fund is strong, and it can invest heavily in the long-term cycle of the industry's downturn, and actively support those enterprises with weak short-term strength but good prospects." Chang Gefei believes that such large-scale fund reverse investment Positive results have been achieved.

For the withdrawal of large funds, Chang Ge is not blunt: "It is still too early to talk about this issue." In his view, the holding period of big funds is generally three years or more, which is different from the financial investment in the general sense of the capital market. Even if there are cost considerations, it will not be too rigidly tied to cost-benefit accounting, and will not easily withdraw in the short term.

The investment target is gradually expanded

It is worth noting that the recent investment by big funds has seen some new trends and has begun to expand the range of listed companies involved, not limited to traditional semiconductor companies.

In the recent issuance of large funds, Wansheng, Navi Technology, and Jacques Technology are not professional semiconductor companies. However, through the acquisition of large fund projects, they are involved in the semiconductor industry chain, and large funds have settled in this way.

In May 2017, Wansheng Co., Ltd. planned to acquire the masters of the company from the issuance of shares in the Grand Fund, and the transaction price was 3.751 billion yuan, and it was funded. Ingenuity is the acquisition entity specially established in 2016 for the acquisition of the US high-performance digital-analog hybrid chip company Silicon Valley digital model. The net asset is about 3 times that of the listed company. The large fund has participated in the capital increase of the mastermind in the early stage; Wansheng Co., Ltd. is mainly engaged in the research and development, production and sales of organic phosphorus flame retardants. After the completion of the acquisition, listed companies will form a dual main business structure.

Jacques Technology, which is also engaged in the organophosphorus flame retardant industry, acquired South Korea's UPChemical through its subsidiary Jiangsu Senko for about 1.2 billion yuan last year, and laid out the precursors for semiconductor materials. After the September fund invested 100 million yuan to increase capital, Jiangsu Xianke, October On the 19th, the listed company announced a plan to increase its shareholding. It intends to acquire the Jiangsu Senko and another big fund held by the big fund and other counterparties. After the transaction is completed, the big fund will hold 5.73%. The transaction is still continuing.

Ding Wenwu, president of the big fund, said that in the next stage, the big fund will appropriately increase investment in the design industry, investing in national strategies and emerging industries such as smart cars, smart grids, artificial intelligence, Internet of Things, 5G and other fields. planning. On October 25th, Ding Wenwu once again stressed that to truly achieve the overtaking of the corner, the conditions are innovation, and there must be subversive technological innovation. It can be expected that relevant innovative companies involved in the above-mentioned industries will be strongly supported by large funds.

On the other hand, the main body of A-shares of large funds gradually expanded to Huaxin Investment. On the evening of October 22, Jingjiawei announced that it would increase its investment by more than 1.3 billion yuan and invest in the field of integrated circuit R&D and design. As the sole manager of the Big Fund, Huaxin Investment intends to participate in the subscription of some non-publicly issued shares of some companies on behalf of the Grand Fund. In the future, Huaxin Investment will replace the big fund “showing” and still need to continue to observe.

Source: Securities Times