“Glove Mao” Intco Medical Technology Co.Ltd(300677) spent $100 million to invest in the new fund of international capital giant Warburg Pincus capital. Such a single investment has been “heroic” in a shares, but according to the announcement, it can be found that the total scale of Warburg Pincus’s new fund will reach an amazing $16 billion!
Poverty still limits one’s imagination.
Who is Warburg Pincus capital? What should such a huge fund invest in? What are the considerations of Intco Medical Technology Co.Ltd(300677) participation? Behind the simple announcement of listed companies, there may be a big chess game in the future.
one fund is $16 billion
It was announced on Intco Medical Technology Co.Ltd(300677) 11 that in order to further optimize the investment structure and enhance the investment value, the wholly-owned subsidiary Intco Medical Technology Co.Ltd(300677) (Singapore) investment Pte.Ltd. (hereinafter referred to as “Singapore company”) plans to cooperate with Warburg Pincus global growth 14gp, L.P. (hereinafter referred to as “Warburg Pincus global growth 14, L.P.”) signed the subscription agreement to invest its own funds in Warburg Pincus global growth 14, L.P.. The total target subscribed capital of the partnership is US $1.6 million (currency is US dollars, the same below), of which Singapore company will subscribe US $100 million as the limited partner (LP) of the partnership.
The scale of a single fund has reached US $16 billion. How many listed companies in A-Shares can have a total market value of more than US $16 billion? What should such a fund invest in?
The announcement disclosed that the investment direction of the partnership is: growth capital, early growth platform, company acquisition and capital restructuring investment in business services, financial services, health care, industry, science and technology, real estate and energy.
It can be seen that the investment involves a wide range of fields and should not be a special purpose company established to acquire some large enterprises.
Where is its sponsor, Huaping capital?
Referring to the official website of Warburg Pincus investment, the company is a leading private equity investment institution in the world, focusing on growth investment.
At present, Warburg Pincus has managed more than US $67 billion of assets globally and invested in more than 215 enterprises in different industries and development stages. Since its establishment in 1966, Warburg Pincus has raised a total of 20 private equity funds and has invested more than 97 billion US dollars in more than 960 enterprises in more than 40 countries around the world.
It can be seen that the new fund participated by Intco Medical Technology Co.Ltd(300677) this time may also be the largest new fund raised by Warburg Pincus capital.
On the other hand, Intco Medical Technology Co.Ltd(300677) what is the purpose of participating in the investment?
The announcement said that the company can combine the experience and resources of the partnership in global business services, health care, industry, science and technology and other industries to enable the company’s future strategic M & A at home and abroad, expand the company’s investment channels and obtain investment income.
investment of “glove grass”
According to public information, Intco Medical Technology Co.Ltd(300677) is a high-tech manufacturing enterprise headquartered in Zibo City, Shandong Province, which is mainly committed to the R & D, production and marketing of medical device consumables. The company’s main products include disposable nitrile gloves, disposable PVC gloves, isolation clothes, masks and masks for medical care, inspection and food processing; Electric wheelchair, manual wheelchair, walking stick, walking aid, etc. for rehabilitation nursing; And ice bags / hot bags, cold and hot bags, cool pads, etc. for medical treatment and surgery.
Since the outbreak of covid-19, the disposable gloves industry has increased sharply. By the end of 2020, Intco Medical Technology Co.Ltd(300677) can achieve an annual output of 36 billion disposable non latex gloves, and the production capacity in 2019 is only 19 billion. On January 15, 2022, Intco Medical Technology Co.Ltd(300677) responded to investors that by the end of December 2021, the company’s total annual production capacity of disposable gloves was 75 billion, including 45 billion Disposable Nitrile Gloves and 30 billion disposable PVC gloves.
Based on this calculation, the production capacity of Intco Medical Technology Co.Ltd(300677) has nearly quadrupled in two years.
The rapidly expanding market led to a significant increase in Intco Medical Technology Co.Ltd(300677) performance. In 2020, Intco Medical Technology Co.Ltd(300677) achieved an operating revenue of 13.837 billion yuan, a year-on-year increase of 564.29%; The net profit was 7.007 billion yuan, a year-on-year increase of 3829.56%.
In 2021, Intco Medical Technology Co.Ltd(300677) still maintained a high performance growth rate. By the end of the third quarter of 2021, Intco Medical Technology Co.Ltd(300677) operating revenue had reached 13.647 billion yuan, a year-on-year increase of 52.56%; The net profit was 6.942 billion yuan, a year-on-year increase of 58.77%.
However, it should not be ignored that with the gradual stabilization of the epidemic situation, Intco Medical Technology Co.Ltd(300677) performance growth also began to slow down gradually. In the third quarter of 2021, Intco Medical Technology Co.Ltd(300677) revenue was 2.972 billion yuan, a year-on-year decrease of 33.88%; The net profit was 1.064 billion yuan, a year-on-year decrease of 56.61%.
or in this context, Intco Medical Technology Co.Ltd(300677) also considers carrying out investment business to support longer-term performance growth.
On February 7, a few days before this announcement, Intco Medical Technology Co.Ltd(300677) also announced on the grounds of “optimizing the investment structure and improving the investment value”, that it planned to sign a partnership agreement with Jiangsu Boshang Private Equity Fund Management Co., Ltd. to invest its own funds in Wuxi shangxianhu Boshang investment partnership (limited partnership).
It is reported that shangxianhu Boshang aims to subscribe a total capital contribution of 6 billion yuan, and Intco Medical Technology Co.Ltd(300677) will subscribe 300 million yuan as the limited partner (LP) of the partnership.
According to the disclosure, Shang Xianhu Boshang will focus on investing in the target companies and asset portfolios in the fields of scientific and technological innovation such as new generation information technology, advanced manufacturing, medical and health care, consumer technology and so on.
Intco Medical Technology Co.Ltd(300677) said that investment in shangxianhu Boshang can combine the professional advantages of fund manager Bohua capital in the fields of medical protection and rehabilitation care products to expand the company’s investment channels and obtain long-term investment income. In addition, the company will also actively pay attention to potential business cooperation opportunities in the above fields and strive to maximize synergy.
According to the current public information, the investment of Intco Medical Technology Co.Ltd(300677) is still dominated by capital contribution as LP, and there are investments in both RMB and US dollars (which means that China has layout abroad), rather than a large number of active equity investment or M & A, which may be a more secure way.
“Liu Fangyi ( Intco Medical Technology Co.Ltd(300677) chairman) He is a more prudent person. Although he will attack quickly and take the initiative to seize big opportunities, he is still more focused in his bones. If you have money, you should first be an LP, cooperate with mature large funds, learn from others’ experience, share global resources, and find investment and M & A opportunities that better meet the needs of Yingke. What’s more, they can also enjoy the income of fund investment. ” An investor told reporters.
