On April 10, the new stock of NSM micro (688052) on the science and Innovation Board issued an announcement on its initial public offering and listing on the science and innovation board.
It is disclosed that the offering price of the company is 230 yuan / share, which is more than 10% lower than the lower of the four averages and median quoted by investors, and the amount of reduction is 26.31 yuan / share. The financing scale corresponding to the issuance price is 5.811 billion yuan, and the issuance price corresponds to the total market value after issuance of 23.245 billion yuan.
Market participants pointed out that the company’s small share capital, explosive growth in performance, long time interval between the design and actual fund-raising of fund-raising projects and other factors led to a large excess of the planned fund-raising amount
From the valuation level, due to the unaudited financial report in 2021, the corresponding P / E ratio of the offering price of NSM is 574.05 times (earnings per share is calculated by dividing the net profit attributable to the parent company after deducting non profits in 2020 by the total share capital after issuance); In terms of dynamics, the corresponding dynamic P / E ratio in 2021 is 107.48 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2021 by the total share capital after issuance). Compared with peers, the dynamic valuation level of SMIC is lower than 3Peak Incorporated(688536) , Sg Micro Corp(300661) , and the dynamic P / E ratios of the latter two in 2021 are 116 times and 113 times respectively. From the perspective of industry situation, the company belongs to software and information technology service industry. As of April 7, 2022, the average static P / E ratio of software and information technology service industry (I65) released by China Securities Index Co., Ltd. in the latest month was 50.67 times.
According to the disclosure of the prospectus, nano chip micro focuses on the R & D and sales of high-performance and high reliability analog integrated circuits. The product technology covers analog and mixed signal chips. Its digital isolation chips have reached or better than international competitors in many key technical indicators such as anti common mode transient interference ability and anti-static ability. Its main products are mainly used in the fields of information and communication, industrial control, automotive electronics, consumer electronics, etc. its main downstream customers include Zte Corporation(000063) , Shenzhen Inovance Technology Co.Ltd(300124) , smart chip, Sungrow Power Supply Co.Ltd(300274) , Will Semiconductor Co.Ltd.Shanghai(603501) , etc. its vehicle specification chips have been loaded in batches in terminal manufacturers such as Byd Company Limited(002594) , SAIC Maxus, FAW Group, Contemporary Amperex Technology Co.Limited(300750) .
According to the data, the profit of the company has been growing rapidly in the past three years. During the reporting period, the net profit attributable to the parent company after deducting non profits from 2019 to 2021 was 07 million yuan, 40 million yuan and 216 million yuan respectively. The number of shares publicly issued by the company this time is 25 million, and the earnings per share in 2021 is 2.18 yuan / share.
“It is precisely because of the explosive growth of the company’s performance that the actual fund-raising amount of NSM has increased significantly compared with the projects raised and invested in the prospectus. Therefore, we can’t simply equate the over raising with the high price.” In the view of insiders, “high price” and “over raising” are two different discussion areas.
Another investment banker pointed out that the emergence of this over raising of NSM micro is related to the cycle mismatch between the planned and actual raised funds of the raised investment project. According to public materials, in January 2021, the issuer held the board of directors and shareholders’ meeting to review the IPO raised investment plan and determine the amount of capital required for the raised investment project. However, after a lapse of 15 months, the company started issuing and made an inquiry to the market. Benefiting from the policy support of chip localization and the huge Chinese market demand, the company’s revenue and profit increased significantly in 2021. The medium and long-term valuation given by investors based on the company’s good growth expectation did not match the funds required for the design of raised investment projects in early 2021, resulting in great differences between the two.
“When preparing the funds required for raising investment projects, the enterprise will comprehensively consider the current profitability of the enterprise, and plan the proposed investment projects in the short and medium term in combination with future orders and procurement needs. However, if the IPO application cycle of the enterprise is long, there may be cycle mismatch, especially for the high growth science and innovation enterprises, so it is easy to have the phenomenon of ‘over raising’.” The investment bank concluded.
