Behind Li'Ang Micro'S Promotion Of 5.2 Billion Fixed Increase In Half A Year After Its Listing

Only half a year after its listing, Li'ang micro, whose current price is 15 times the issue price, has launched a 5.2 billion large-scale fixed increase, which has caused market disputes.

Although it aims at the 12 inch silicon chip, which represents the field of future technology, after the introduction of the fixed increase scheme, lion micro still encountered investors' voting with their feet, and its share price fell for two consecutive trading days. On March 15, lion micro closed at 76.62 yuan, down 8.56%. On the 16th, it was at 74.29 yuan, down 3.04%.

Is the huge fixed increase good or bad?

In the long run, the 12 inch silicon wafer project invested by lion micro can accelerate the import substitution of advanced products and realize the upgrading of production capacity, which really makes the market full of imagination. Further contact with the current background: there is a global shortage of chips, wafer production capacity is tight, and it is transmitted to the upstream material industry. Leon micro, which mainly deals in semiconductor silicon wafers, announced the refinancing plan at this time, which is exactly the meaning of the topic.

However, the fixed increase of lion micro and the sharp drop of stock price caused by it still caused investor controversy

"The PE is as high as 176 times as high as the astonishing 176 times. You can pay attention to it after cutting back." if you raise the share price by listing, increase or issue shares, and then raise the share price, Ponzi's scheme will fly. "The 12 inch of Shanghai silicon industry central shares has been industrialized for a long time, and it will take a few years for Li'ang micro to be 12 inches. After a few years, 12 inches have been eliminated from the competition"

The semi-conductor company, which has been listed for half a year, has thrown out a huge fixed increase, which has once again triggered a divergence in the market's valuation.

Imagination space of domestic substitution

According to the plan, the total amount of capital raised by the non-public offering of lion micro is no more than 5.2 billion yuan, including an annual output of 1.8 million 12 inch silicon wafers for integrated circuits (2.288 billion yuan), 720000 pieces of 6-inch power semiconductor chip technology transformation project (784 million yuan), 2.4 million pieces of 6-inch silicon epitaxial wafer technical transformation project (628 million yuan) and supplementary working capital (1.5 billion yuan).

In the fixed increase plan, Leon micro said that the construction period of the project is 4 years, and it is expected to have an annual production capacity of 1.8 million 12 inch silicon wafers for integrated circuits, and the annual sales revenue will be 1.52 billion yuan.

The expected income is not small. In the whole year of 2019, the total revenue of lion micro is only 1.19 billion yuan.

This is not the first time that lion micro has invested heavily in the silicon industry.

On September 11, 2020, it landed on the main board of Shanghai Stock Exchange. Its main business is the research and development of semiconductor silicon chips and semiconductor discrete device chips. From the perspective of main business structure, the revenue of semiconductor silicon chip accounted for 67.92%, and that of discrete semiconductor device chip accounted for 27.34% (first quarter report in 2020).

One of the IPO fund-raising projects of Li'ang micro is the 8-inch silicon wafer project with an annual output of 1.2 million chips.

From the perspective of the two fund-raising projects, Leon micro's strategy is very clear: 8-inch silicon wafer projects focus on the present, and 12 inch silicon chips look forward to the future.

Semiconductor silicon wafer is the core material of semiconductor manufacturing. From the specification of semiconductor silicon chip, 8 inch and 12 inch diameter semiconductor silicon wafer is the mainstream product in the global market.

However, there are high technical barriers to the manufacture of large-size semiconductor silicon wafers, which are monopolized by overseas manufacturers for a long time. Most of China's 8-inch and 12-inch semiconductor wafers rely on imports. In terms of market trend, 12 inch silicon wafer exceeded 8 inch silicon chip market share for the first time in 2008, becoming the most mainstream product in semiconductor silicon chip market. It is estimated that the market share will be close to 70% by 2022.

At present, the micro expansion and upgrading of large silicon wafer project has practical significance. Under the situation of global chip production shortage, the price of silicon products of Xinyue chemical, the world's largest supplier of semiconductor silicon wafers, has increased in the near future. The market is expected to drive the global silicon chip market into a rising tide.

On February 1, Leon micro said on the interactive platform that so far, the price of 6-inch silicon products has been increased.

As a key raw material for chip manufacturing, the market demand for semiconductor wafers will increase significantly under the background of the continuous expansion of global chip manufacturing enterprises, and domestic semiconductor wafer enterprises will also usher in an important "time window" for development. The implementation of this project will accelerate the process of import substitution of 12 inch semiconductor silicon wafers and improve the level of self-reliance of semiconductor silicon wafers in China.

Whether from the perspective of technology evolution or market prospect, the 12 inch silicon chip fixed increase project of lion micro has great imagination space, but why didn't it attract the attention at the beginning of listing?

As for the reasons for the company's share price decline, on March 15, the 21st century economic news reporter called the Board Secretary Office of lion micro as an investor. The relevant staff analyzed to the reporter that it might be the market behavior of the potential fixed increase party. "Because the fixed increase price is no less than 80% of the average price of the company's stock in the 20 trading days before the pricing benchmark date, if investors want to participate, they may suppress the price due to cost considerations. This is a market reaction."

Valuation cracks under the "battle" of silicon wafer

However, in addition to the possible market behavior, there may be a signal of valuation cracks behind the fall in the share price of lion micro.

Taking advantage of the semiconductor industry, lion micro set a record of 22 consecutive trading limits at the beginning of listing. Such a considerable increase, even in the context of the registration system, is enough to make this new issue a star in the capital market.

On December 15, 2020, lion micro climbed to the peak of 145 yuan just three months after its listing, and the relative issuance price (4.92 yuan) increased by 28 times. Since then, lion micro stock price fell into a correction, so far, the company's stock price relative to the highest price has dropped by 48.8%.

This is similar to the stock price trend of the same industry company Shanghai silicon industry. At the beginning of listing, the stock price of the latter was also hotly speculated by institutions. Within two months after the IPO, the stock price rose 8 times, and then fell into a sharp correction.

Liang micro share price rise is inseparable from the promotion of the organization. Since its listing, Li'ang micro has received 328 research institutions in total, which can be said to be full of people. According to the survey records, the company is frequently asked about the progress of 8-inch and 12-inch silicon wafers of semiconductors, as well as the price rise expectation.

The reply to the two questions, to some extent, represents the investment value of lion micro in the future.

According to the reply from Leon micro to reporters, the two projects have been put into advance. Although the 12 inch silicon wafer project has not been completed yet, it has some production capacity.

"The 8-inch project has been completed and is in the climbing stage of reaching the production capacity. There is no problem in the technical reserve of the 12 inch project, which is already under construction, and epitaxial wafers are also sold. The equipment is mainly filled through this fixed increase. At present, the production capacity is less than that of other companies, because other companies built earlier, and there is competition after increasing the volume. " Li Ang Wei Dong's secretary office told reporters of the 21st century economic report.

A survey summary in January this year also showed that the 12 inch silicon wafer project of lion micro has realized commercial production and sales, and achieved positive wafer supply. At present, it is under continuous expansion, and it is expected to reach an annual production capacity of 1.8 million pieces by the end of 2021.

According to the progress disclosed in the prospectus in May 2019, lion micro is lagging behind in the development and industrialization of 12 inch silicon wafers for the time being.

According to the information disclosed at that time, jinruihong microelectronics, a subsidiary of lion micro, which is responsible for the 12 inch silicon wafer industrialization project, has entered the early stage of equipment procurement and construction.

The progress of other competitors is ahead of Leon micro. For example, Youyan semiconductor has built a 12 inch silicon wafer test line with a monthly production capacity of 10000 pieces, while the 12 inch wafer production line under construction by Shanghai Xinsheng is expected to reach a monthly production capacity of 100000 pieces by the end of 2018.

Among them, Shanghai Xinsheng is a subsidiary of Shanghai silicon industry. The latter landed on the science and technology innovation board in April 2020, and its IPO capital investment is 300 mm (12 inch) silicon chip technology research and development and industrialization phase II project. After the implementation of the project, the company will increase the production capacity of 150000 pieces / month of 300 mm semiconductor silicon chip, and the construction period of the project is 2 years.

That is to say, after the second phase project of Shanghai silicon industry is put into operation, the production capacity of its 12 inch silicon wafer project will reach 3 million pieces / year, which is much higher than that of Lyon micro.

At the same time, other peer companies are also expanding production capacity when lion micro expands its capacity.

As early as July 2020, China Central's fixed increase plan was approved by China Securities Regulatory Commission. It is planned to raise no more than 5 billion yuan for 8-12 inch semiconductor silicon wafer production line project and replenish working capital to build a production line with a monthly output of 150000 12 inch polished wafers.

According to icmtia statistics, at present, there are more than ten companies engaged in silicon material business in China, including Zhejiang jinruihong, Youyan semiconductor, Zhonghuan, Nanjing Guosheng, Shanghai Xinsheng, Shanghai Xinao, Hebei Puxing, Kunshan Zhongchen, etc.

From the perspective of the participants, the competition in Silicon Valley is fierce.

On March 16, Zhang Zhihe, chief consultant of Shanghai transfer point information, said in an interview with reporters, "some domestic silicon wafer factories with 12 inch mainstream EPI and NPC can only reach 28nm, and the higher-end ones are still blank. At the same time, the yield of domestic 28nm products still has relatively large room for improvement. Most of the newly-built silicon wafer factories are still in mass production on monitoring chips, and the quantity of product chips still needs a long time Time. "

"Whether the project investment of large silicon chips is competitive depends on whether the major investors have government background, and whether the investors have downstream customers. If there are these two points, there will be more advantages. In fact, from the current statistics of the industrial chain, if all the project equipment is installed and put into operation, there will be excess capacity, which will inevitably lead to the imbalance between supply and demand, and eliminate some companies that do not have the advantages of technology and customers. " Zhang Zhihe said.

In addition to the competitive threat of competitors, there is also uncertainty in another factor of price increase.

In fact, although the price rise trend is spreading from chip to upstream, there are still differences on whether it will be transmitted to the silicon chip industry more upstream.

According to a survey summary exclusively obtained by 21st century economic reporter, lion micro keeps a neutral view on whether the price of large-size silicon wafers increases: "the production and sales of 6-inch silicon wafers are all in China, and the supply exceeds demand, so the price rises first; more than 50% of 8-inch silicon wafers depend on imports, and those that can not increase the price of the company abroad will not rise."

In an interview with reporters, Zhang Zhihe said, "according to past experience, domestic silicon wafer manufacturers and related industrial chain links will gradually increase prices, but the transmission of the impact still needs a certain period of time. Generally, it takes about a quarter or half a year for the whole industrial chain to complete the price increase."

Under the fierce competition of silicon chip technology, production capacity and price, and combined with the market factors of fixed increase, the valuation of Lyon micro is obviously facing a lot of challenges.

Financing questions behind Wang minwen's capital transfer

Leaving aside the discussion on the industry side, the launch of a large-scale fixed increase only half a year after the listing is also the controversial point for investors against ang Wei.

"The IPO price is about 5 yuan, and the fund raised is 160 million yuan. First, 10% of the market will be traded to raise the stock price, and then the high price will be increased to raise 5.2 billion yuan? Raising funds up to 30 times of the initial public offering? The two-step plan of listing and financing is really wonderful. " An investor is straight forward in a certain stock bar.

Looking back on the listing process of lion micro, many capital stories also make the market put a question mark on its purpose of this fixed increase.

This has to mention the predecessor of Li'ang micro, Li Li electron.

In March 2008, Li Li Electronics held the first meeting. While everything is ready to ring the bell, Li Li Electronics has been questioned by the media and suspected of "asset transfer and secondary listing". Finally, the SFC reversed its IPO decision. In April 2009, Li Li Electronics returned the raised funds and interest to investors, becoming the first A-share company to pass the examination committee and raise funds in place, but failed to go public.

What is the relationship between the two? Zhejiang jinruihong Technology Co., Ltd. is the main semiconductor silicon business of lion micro. According to qixinbao data, in November 2011, Zhejiang jinruihong was renamed from Ningbo Lili Electronics Co., Ltd.

In addition, Wang minwen is the common actual controller of the two companies.

According to public information, Wang minwen was born in November 1963. From 1988 to 2007, he successively served as Shenneng shares, Shenneng assets and Shenneng group; from 2007 to 2009, he served as the director of Hitachi electronics; from 2010 to now, he has been the chairman of lion micro electronics. At the same time, he also served as the chairman of Zhejiang jinruihong, Liang Dongxin and jinruihong microelectronics, executive director of lion semiconductor, chairman of Xianhe holdings, chairman of Shanghai jincube, chairman of Shanghai sheratong, and director of Zhejiang Jinxiang Technology Co., Ltd.

Wang minwen is a frequent visitor in the capital market. After the IPO of Li Li Electronics was rejected, Wang minwen was fined 2.32 million yuan by the China Securities Regulatory Commission (CSRC) for making more than 1.16 million profits from insider trading in Haili shares in 2010.

Xianhe shares under its helm is also a controversial target. At the beginning of listing, it was questioned because of related party transactions and illegal transactions such as "g Jinfeng".

Back to the listing of lion micro, it first disclosed the listing prospectus in December 2018. It plans to issue no more than 40.58 million new shares, accounting for no less than 10.00% and no more than 10.131% of the total share capital after the issuance, and the total planned fund-raising is 1.35 billion yuan.

But in the end, the fund-raising of lion micro was much lower than expected. In September 2020, lion micro announced the issue price of RMB 4.92/share, and the total amount of raised funds was RMB 199 million. After deducting the issuance expenses, the net amount of raised funds was RMB 160 million.

This is quite different from the original fund-raising goal. 160 million yuan, which is less than the annual net profit of the company in 2018 (181 million yuan), and is not enough to cover the 8-inch silicon project with a total investment of 700 million yuan.

From this point of view, Li'ang micro's desire for listing can be seen.

In September 2020, lion micro will raise 160 million yuan to replace the self raised funds of 8 inch silicon wafer project.

Li'ang micro director's office related people told reporters, "because the project is early investment, fund-raising to do replacement, the money has been spent, the rest will be solved with bank loans."

There are also investors on the interactive platform concerned about the company's lack of fund-raising: "the company's IPO fund-raising is too low to promote the rapid development of the company. We hope that the company will refinance as soon as possible, accelerate industrialization, and actively develop new technologies."

As expected by the investor, lion micro raised only 200 million yuan in the previous time, and then put forward a 5 billion yuan fund-raising plan. This may be "make up" for the lack of fund-raising.

But it also raises questions in the market.

When asked why they raised funds again in a short period of time and whether there was a shortage of funds, the aforementioned Li'ang micro related person said, "there is no shortage of funds, because the debt ratio is gradually falling. Semiconductor is a heavy investment industry, and the amount of investment is relatively large. By issuing additional shares in the capital market, we can obtain funds faster for construction. "

However, judging from the current market reaction, it is obvious that the financing plan urgently launched by lion micro in half a year has not been recognized by the market for the time being. It remains to be seen whether the ambition of its 12 inch silicon project can be realized.

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