The boom of semiconductor materials has increased, which has attracted the continuous overweight investment of large fund phase II.
Shennan Circuits Co.Ltd(002916) on February 9, the report on the issuance of non-public offering shares was disclosed, and the total amount of funds raised was determined to be about 2.55 billion yuan. The objects of this issuance were finally determined to be 19, of which the national integrated circuit industry investment fund phase II Co., Ltd. (hereinafter referred to as “big fund phase II”) subscribed 300 million yuan.
Shennan Circuits Co.Ltd(002916) is one of the leading enterprises of PCB (printed circuit board), and its product application mainly focuses on communication equipment. In addition, the company actively develops new fields such as data center and automotive electronics, which is also an important reason to attract the attention of the second phase of large funds. Prior to this, China Mobile, Hubei Xingfa Chemicals Group Co.Ltd(600141) subsidiary Xingfu electronics, Dongxin shares, Semiconductor Manufacturing International Corporation(688981) , Advanced Micro-Fabrication Equipment Inc.China(688012) , Jiangsu Nata Opto-Electronic Material Co.Ltd(300346) and other companies won the second phase investment of large fund.
From the current layout of the second phase of the large fund, the investment target covers the industrial chain links such as integrated circuit design, chip manufacturing, packaging and testing, materials and equipment manufacturing. Compared with the first phase, the investment focus is more on the manufacturing link, focusing more on the field of equipment and materials, and overweight wafer manufacturing.
large fund phase II participation Shennan Circuits Co.Ltd(002916) fixed increase
After more than 30 years of deep cultivation in PCB industry, Shennan Circuits Co.Ltd(002916) won the second phase capital increase of big fund.
According to the announcement on February 9, the issuance price of the non-public offering was determined to be 107.62 yuan / share, the number of shares issued was 2369448, and the total amount of funds raised was about 2.55 billion yuan.
It is worth mentioning that the issuance of the company was favored by the second phase of the large fund, with a subscription amount of 300 million yuan and 2.7876 million shares. In addition, Huatai Securities Co.Ltd(601688) , AVIC Investment Co., Ltd., Guoxin Investment Co., Ltd., China Galaxy Securities Co.Ltd(601881) securities and other institutions participated in the subscription, and foreign giants such as JPMorgan Chase Bank, Swiss bank, Macquarie Bank Co., Ltd. and BNP Paribas were also listed.
Shennan Circuits Co.Ltd(002916) mainly engaged in three businesses: printed circuit board, packaging substrate and electronic assembly. The funds raised in this offering are mainly used for the manufacturing project of IC carrier board products for high-end flip chip, with an investment amount of 2.016 billion yuan.
The company said that the manufacturing project of IC carrier products for high-end flip chip is to further improve the production capacity and technical capacity of the company’s packaging substrate business, and the supplementary working capital project is to meet the capital needs of the rapid development of the company’s business. These projects are carried out around the main business of the company.
China has the world’s largest integrated circuit market, but at present, about 80% of China’s integrated circuits need to be imported. Integrated circuits have become the largest imported goods in China for many years. It is urgent to develop an independent and controllable integrated circuit industry. Among them, the packaging substrate is still in its infancy in China, and there is no large-scale packaging substrate enterprise. At present, the development of China’s integrated circuit industry is mainly limited by the whole packaging industry chain.
The company said that the IC carrier product manufacturing project for high-end flip chip of the raised and invested project of this non-public offering will further improve China’s integrated circuit industry chain.
So far, Shennan Circuits Co.Ltd(002916) has reported 112.14 yuan / share, with the latest market value of 54.9 billion. Public information shows that as of September 30, 2021, Shennan Circuits Co.Ltd(002916) has 71053 shareholders.
continued overweight layout of large fund phase II
The second phase of the big fund was registered and established on October 22, 2019, with a registered capital of 204.15 billion yuan. It has 27 shareholders, including the Ministry of finance, CDB finance, China tobacco and other state organs and departments, as well as national funds, as well as local government background funds, Central enterprise funds, private enterprise funds, etc.
After its establishment, the second phase of the large fund undertook the responsibilities of the first phase and continued to invest in China’s semiconductor industry to help the rise of domestic chips. In April 2020, the second phase of the large fund completed its first investment and invested 2.25 billion yuan in Ziguang zhanrui. Subsequently, the second phase of the large fund successively invested in a number of enterprises, including investing US $1.5 billion to participate in the capital increase and share expansion of SMIC south, a subsidiary of Semiconductor Manufacturing International Corporation(688981) and jointly establishing SMIC capital with Semiconductor Manufacturing International Corporation(688981) and Yizhuang Guotou to carry out a 12 inch wafer factory project with a total investment of US $7.6 billion.
After entering 2021, the investment rhythm of the second phase of the large fund has accelerated significantly. According to incomplete statistics by the reporter of the securities times, during 2021, there were more than 10 public investment projects of the second phase of the large fund, involving China Mobile, Hubei Xingfa Chemicals Group Co.Ltd(600141) subsidiary Xingfu electronics, Dongxin Co., Ltd., canqin technology, Tianshui Huatian Technology Co.Ltd(002185) , Naura Technology Group Co.Ltd(002371) , rising software, Zhiwei technology, Baiwei storage, Jiangsu Nata Opto-Electronic Material Co.Ltd(300346) , Galaxycore Inc(688728) Guangzhou Huizhi microelectronics, Advanced Micro-Fabrication Equipment Inc.China(688012) , China Resources Microelectronics Limited(688396) etc.
At the beginning of 2022, the second phase of the large fund’s investment in the semiconductor industry chain still did not stop, and it spent 300 million yuan to participate in the fixed increase of Shennan Circuits Co.Ltd(002916) .
From the perspective of large fund phase II investment enterprises, it covers the industrial chain links such as integrated circuit design, chip manufacturing, packaging testing, materials and equipment manufacturing. Compared with phase I, the investment focuses more on the manufacturing links, focuses more on the field of equipment and materials, and overweight wafer manufacturing.
Shengang Securities believes that China’s semiconductor chip industry, driven by the rapid development of emerging fields such as intelligent vehicles, artificial intelligence, Internet of things and 5g communication, has broad growth space in the next few years. Chip design at the upstream of the industrial chain is a high-precision technology intensive industry, which requires long-term technology R & D investment. Midstream wafer manufacturing and processing equipment has large investment and high threshold, and key equipment such as coating, lithography and etching are controlled by a few international giants. The downstream packaging and testing link has developed for a long time in China, and the industry scale advantage is obvious.
Shen Gang Securities said that with the investment of national IC industry investment fund, the investment layout of semiconductor chip industry in Chinese mainland will expand further, and the technology of semiconductor chip related products will continue to accelerate. Chinese mainland IC chip design and IC packaging are expected to achieve breakthroughs.
large fund phase I enters the payback period
After the five-year investment period, the first phase of the large fund will enter the payback period from 2019 to 2023 according to its own plan. At the end of 2019, large funds will begin to exit selectively and in stages.
In 2021, the first phase of large funds continued to reduce their holdings, Gigadevice Semiconductor (Beijing) Inc(603986) , China Wafer Level Csp Co.Ltd(603005) , Hangzhou Chang Chuan Technology Co.Ltd(300604) , Jcet Group Co.Ltd(600584) , Rockchip Electronics Co.Ltd(603893) , Hunan Goke Microelectronics Co.Ltd(300672) and many other leaders in semiconductor industry segments were reduced.
At the beginning of 2022, the first phase of the large fund began a new reduction action, and the holdings of Hunan Goke Microelectronics Co.Ltd(300672) and Changsha Jingjia Microelectronics Co.Ltd(300474) two chip bull stocks were reduced. Subsequently, China Resources Microelectronics Limited(688396) also disclosed that as of January 19, 2022, large funds had reduced 5.8994 million shares of the company through centralized bidding, accounting for 0.45% of the total share capital of the company. The first phase of the reduction plan of large funds has been more than half, but the reduction plan has not been implemented yet.
Shengang Securities pointed out that the benign exit of the first phase of the large fund is conducive to the targeted investment of the second phase of the large fund into the weaker links in the semiconductor industry chain, so as to create a better ecology, which investors need to treat rationally.
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