The rise in the stock price of high-tech development depends on the transformation of mergers and acquisitions that closely follow the capital market twice in the short term, but the performance needs to be verified.
Yuan Jingli.
As of the end of November 2023, High-tech Development (000628SZ) has risen by nearly 400% since 2023, second only to the new stock Mongguli, ranking second in Shanghai and Shenzhen A-share gains, which originated from a restructuring disclosed on October 19, and the company intends to set foot in computing power servers with no more than 2.1 billion yuan.
Since then, the share price of high-tech development has soared, with 11 consecutive daily limits, and the market value has also increased from 5.7 billion yuan before the suspension to more than 20 billion yuan at present, an astonishing increase. According to the restructuring plan, the company intends to acquire 70% of the shares of Huakun Zhenyu at a valuation of no more than 3 billion yuan, and the latter's main business is the research and development, production and sales of domestic servers.
In the past year or so, High-tech Development has planned two mergers and acquisitions, one is aimed at power semiconductors and chips, and the most recent is computing power servers. So far, the first transformation has brought in revenue, but not profits, and the second transformation is still in progress. However, from the perspective of stock price, the two transformation mergers and acquisitions have been sought after by the capital market in the short term, and in the context of the same period, the growth rate of high-tech development has far outperformed the growth rate of the main board, ranking high on the main board.
Two mergers and acquisitions that closely follow the hot spots in the capital market
The original business of high-tech development was construction, mainly carried out through its wholly-owned subsidiary, Beite Jian'an, which is currently the largest revenue and profit**. From 2020 to 2022, the net profit of Beite Jian'an was 18.7 billion yuan, 16.2 billion yuan and 19.2 billion yuan. High-tech Development is a state-controlled listed company, and the major shareholder is Chengdu High-tech Investment Group, with a shareholding ratio of nearly 49%.
However, because the construction and installation business is a traditional business, the valuation given by the market is low, and the company's market value has been maintained below 5 billion yuan all year round, so it has planned two transformation mergers and acquisitions in the past two years.
From the perspective of the capital market, starting from the second half of 2021, affected by the consumer electronics boom and the destruction of the chip chain, chips have begun, and semiconductor chips have once again become a hot spot in the capital market after the conflict between China and the United States in 2018, and high-tech development has also focused on the transformation of the semiconductor field.
In June 2022, the high-tech development announcement was proposed to be 28.2 billion yuan in cash to acquire Senwei Technology 694% of the equity, for 1.96 million yuan to acquire 98% of the equity of Xinwei Technology. Senwei Technology is located in the upstream of power semiconductors, and its main business is the design, development and sales of power semiconductor devices such as IGBT.
The agreement was signed on May 31 and announced on June 1, since then the company's share price has continued to climb, and the transformation of an acquisition of less than 300 million yuan has driven the market value of **50% in the short term.
The above mergers and acquisitions were completed in early July 2022, and the intangible assets of the listed company increased by 14.9 billion yuan, goodwill increased by 16.1 billion yuan. Since the second half of the year, the company's high-tech development revenue includes the semiconductor business, and in 2022 and the first half of 2023, the company's power semiconductor business revenue will be 61.6 million yuan and 67.74 million yuan, and the gross profit margin will be 1852% and 1819%。Since then, the company has launched no more than 7300 million yuan of convertible bond plan, of which 51.1 billion yuan will be used for the R&D and industrialization of high-end power semiconductor devices and components in Chengdu High-tech West Zone, and the rest will be used to supplement working capital.
From the point of view of the acquisition amount, Senwei Technology is the protagonist, and the increase in intangible assets and goodwill caused by payment is more than this. According to the financial report, in 2022, Senwei Semiconductor (from July to December) will have revenue and net profit of 61.58 million yuan and a loss of 1.8 million yuan, respectivelyIn the first half of 2023, Senwei Technology's revenue and net profit will be 70.62 million yuan and a loss of 1.33 million yuan, respectively.
The revenue of the high-tech development semiconductor business also mainly comes from Senwei Technology, at least from the data of the past year, the cash acquisition of nearly 300 million yuan has not brought substantial improvement in performance.
Since 2023, the landing of artificial intelligence models represented by ChatGPT has marked a new stage in the application of AI technology, and triggered a surge in demand for training and inference computing power, and various domestic artificial intelligence models have also been announced, and the demand for chips and servers in the domestic AI industry chain has exploded under the condition that the United States has set restrictions on Chinese artificial intelligence-related links.
Great Wall ** believes that with the maturity of large models, vertical models applied to all walks of life have begun to accelerate the sinking and prosperity, and industry integration applications are expected to further drive the rapid increase in product demand in related subdivisions on the computing power side, and the relevant targets involve AI chips, AI server switches, PCBs and other industrial links.
In October, the Ministry of Industry and Information Technology and other six ministries jointly issued the "High-quality Development Plan for Computing Infrastructure", which put forward goals in terms of computing power, carrying capacity, storage capacity and application empowerment in the next three years.
Ping An ** believes that the plan will promote the rapid development of China's computing infrastructure, and the development quantitative target of 2025 will further open up the growth space of the domestic computing industry.
Since the beginning of 2023, the best companies involved in the computing power industry chain have flocked out, and Cambrian-U, Haiguang Information, which focuses on AI chips, and Inspur Information, which focus on servers, have all achieved huge gains.
Stimulated by the money-making effect of the sector, the transformation of listed companies aims at the computing power industry chain. For example, after the transformation of computing power services, Zhongbei Communication increased by more than 200% in just half a year.
The merger and acquisition of Huakun Zhenyu, which is a computing power industry enterprise, mainly provides the design, research and development, production, sales and service of its own brand computing, storage and other products based on data centers and artificial intelligence processing, and the high-tech development is once again linked to the hottest theme in the capital market, and the stock price has also risen sharply, ranking second in the main board of Shanghai and Shenzhen in 2023, and the first in the computing power sector.
Restructuring yet to be verified
Hua Kun Zhenyu has the hottest computing power server halo in the capital market.
According to the restructuring plan, Huakun Zhenyu is mainly engaged in the design, production, sales and service of servers and other related products, which are mainly used in operators, financial institutions, computing centers and other companies and institutions with high requirements for computing power.
As of the end of September 2023, Huakun Zhenyu's asset-liability ratio was 9682% with a net worth of 20.6 billion yuan, according to the highest valuation of 3 billion yuan, the value-added rate reached 1354 times.
The company said that as of the end of June, the asset-liability ratio of the listed company was 8547%, after being included in the consolidated statements, will further increase the scale of liabilities of listed companies, and the company will face the possibility of further increase in capital risk.
As of the end of September 2023, the target company's external borrowings amounted to about 4.9 billion yuan, and in 2021-2022 and the first nine months of 2023, Huakun Zhenyu's revenue was 108.6 billion yuan, 342.4 billion and 394.9 billion yuan, net profit of 11.43 million yuan, 43.41 million yuan and 46.97 million yuan respectively.
Since the high-tech development did not disclose detailed statements and notes, on the surface, Huakun Zhenyu is more like an advance business, and the company's total assets driven by high debt are likely to soar accounts receivable, which requires further disclosure of relevant information by listed companies.
High-tech Development listed Inspur Information, Unisplendour, Radio and Television Wuzhou, Tongfang and Tuowei Information as comparable companies for mergers and acquisitions, and as of the end of September, the average static price-earnings ratio of comparable listed companies was 2893 times, lower than the target company 69With a static P/E ratio of 11 times, the M&A report said that considering the rapid growth of the company's performance, it is expected that the P/E ratio of the target company's profit level will decrease in the future.
According to the unaudited financial data, in 2021, 2022 and from January to September 2023, the net profit margin of the target company was27% and 119%。
From 2021 to 2022, the net profit margin of Inspur Information will be ., respectively96%, and the net profit margin of Unisplendour shares was 561% and 505%, Tongfang shares are -657% and -141%, radio and television five boats were 195% and -309%。
At the same time as the restructuring announcement, the Shenzhen Stock Exchange also issued an inquiry letter.
The Shenzhen Stock Exchange requires the company to: (1) combine the changes in the industry development environment and trend of the industry in which the target is located, the industry competition pattern, product sales, business model, customer structure, profit model and gross profit margin, compare the performance changes of comparable companies in the same industry, and explain the reasons and rationality of the sharp increase in revenue scale since its establishment, and the authenticity of the performance;(2) Supplemental disclosure of the sales of the top five customers of the acquisition target, explaining whether there is a significant dependence on major customers, the stability and sustainability of cooperation with the top five customers, and whether there is commercial substance in the relevant transactions.
In this regard, high-tech development responded that the stable growth of major comparable companies is that on the one hand, the server technology path is more mature and the business model is more stableOn the other hand, the business scope of comparable companies is more comprehensive, and there are many types of revenue composition, and the main business of the target company focuses on the manufacturing, production and sales of self-owned brand servers, and the revenue contribution is mainly domestic brand server products, and the business fully benefits from the rapid development of the domestic computing power industry and the localization trend of key equipment.
The top five customers of the target company are listed companies such as Donghua Software and Aerospace Information, as well as related customers such as Changhong Holding Group and CDHTI Electronics Group.
In addition, due to the static P/E ratio of nearly 70 times, it is much higher than similar acquisitions of A-shares of 38The average static P/E ratio of 60 times, Gaoxin Development also uses the ** net profit in 2023 as the subject in the reply letter, indicating that the company's dynamic P/E ratio is 1894 times, slightly higher than the 18 of similar acquisitions14x dynamic P/E ratio.
However, even if the restructuring is successful, the performance in 2023 still needs to be verified, and the later profits will need to be tested by time.