In addition to public funds, investment institutions such as insurance companies, subsidiaries of securities companies and management companies affiliated to state-owned platforms have succeeded in obtaining the qualification of Chinas general-name strategic allotment. According to the issuance announcement, the total amount of Chinas Tong Tong strategic allotment sales is 3.159 billion yuan.
In addition to the public offering products listed in the strategic distribution list, the high pricing of the nine wholesale ventures has also become the focus of the market, and the 170 times P/E ratio of the issuance of micro and medium-sized companies has also triggered a wave of discussions.
List of First Place Strategic Allocation of Public Funds
Chinas Tongtong Institutional Investors are numerous
As the first state-owned enterprise of Science and Technology Innovation Board, China Unicom, which has a huge amount of capital, has become the focus of attention of many investment institutions.
On the evening of July 8, the issuance pricing of nine science and technology start-up enterprises, such as China Tonghao, was determined. In the list of qualifications issued by the intermediary agencies, Bosch Created a 3-year closed flexible allocation hybrid fund, and Huaxia 3-year closed operation strategy allocation flexible allocation hybrid fund were officially listed. This is also the first time that public funds appear in the strategic allocation list of GEM enterprises.
According to public data, Boshi Kechuangs three-year closed flexible allocation hybrid fund was newly approved in June, and the size of the fund was close to 1 billion yuan. This time, China Tongtongs new share allocation has accounted for 7% of the investment proportion of this Kechuang theme fund. Another allocated three-year closed-operation strategic allocation and flexible allocation hybrid fund (LOF) was a public placement strategic allocation fund issued in July last year. Its size was 11.9 billion yuan at the end of June this year. The initial market value of China Tongtong strategic allocation shares accounted for about 0.58% of its net value.
In fact, the strategic distribution list of China Unicom is a luxury lineup. In addition to public funds, insurance companies, subsidiaries of securities companies and other investment institutions have also appeared in China Tongs strategic distribution list. Among them are China Life, Xinhua Insurance, Minmetals Capital, Bank of China Finance, Shanghai International and other large institutions. At the same time, China Railway Investment, Shandong Railway Development Fund, Hunan Railway Traffic Company, Sichuan Chengdu-Chongqing Expressway and other industrial capital and listed companies have also become institutional investors in strategic distribution.
According to the above issuance announcement, there are 28 investment institutions in the strategic placement, and 540 million new shares have been allocated. The total amount allocated to all strategic placement institutions is 3.159 billion yuan.
China Unicom has a huge amount of financing
Opportunities for Public Fund Participation
Why havent we seen the products of public funds in the past few times, but this time, two companies can be listed in the strategic allocation of new shares of KJM and become the first list of public funds participating in the strategic allocation of KJM?
First of all, it is also related to the size of China Unicoms fund-raising. This also means that the plate is bigger and more investment institutions will have a better chance to participate. According to the public data, the total number of new shares issued by Tongtong Branch is 1.8 billion, with a fixed price of 585 yuan per share and a raised fund of 10.5 billion yuan. The prospectus shows that the fund-raising projects are mainly used for advanced and intelligent technology research and development projects, including 2.5 billion yuan for advanced and intelligent manufacturing base projects, 300 million yuan for information construction projects, and 3.1 billion yuan for supplementary liquidity. Over 10 billion yuan of fund-raising has also made China Tong a ballast stone of science and technology innovation board in the market, and attracted the participation of a large number of institutions.
For large-scale institutions such as public funds, there are certain restrictions on participating in the strategic placement of new shares in GEM enterprises. According to the provisions of the Shanghai Stock Exchange, issuers with an initial public offering of more than 100 million shares are allowed to carry out strategic placement; those with less than 100 million shares and strategic investors who obtain placement of less than 20% of the total number of initial public offerings can also carry out strategic placement. This also means that the large-scale issuance of science and technology companies, will appear similar to the star-gathered strategic placement situation, public funds have the opportunity to really participate in the strategic placement fund of science and technology creation board.
At the same time, the long-term strategic investment and long-term support for enterprises in the strategic distribution of Kechuang board have also become the key factors for an organization to be included in the strategic distribution list. It is reported that most of the investors who seek strategic placement need long-term investment willingness and long-term strategic cooperative relationship with the issuing enterprises in their business to have the advantage of strategic placement.
According to a fund manager of a large public fund company, the process of strategic allocation itself is also a process of mutual selection between investment institutions and technology companies. In the research of science and technology enterprises, some companies with better quality are more optimistic about some companies with industrial resources or very long-term funds. Relatively speaking, public funds are more in the role of financial investment, and some enterprises that can introduce strategic investment will actively participate in it.
170-fold issue rate triggered discussion
Maximum batch issuance of Kechuang board
And the prominent issue price and earnings ratio of these companies have also triggered a heated discussion in the market. Like the previous KSB issue, the valuation level of the nine companies in this round is not low, and most of them exceed the 23 times P/E requirement of the new stocks listed on the main board and GEM. In particular, the issue price-earnings ratio of micro and medium-sized companies is as high as 170.8 times, triggering a heated discussion in the market.
According to the issuance announcement, the final issuance price of the company is 29.01 yuan per share. The P/E ratio of net profit of shareholders belonging to the parent company before deduction except for regular profit and loss divided by total equity after the issuance is 170.75 times, which is the highest among the companies with published issuance price.
Compared with listed companies in the same industry, the price-earnings ratio of medium and micro companies is actually lower than that of comparable companies Huachuang (407 times), Changchuan Science and Technology (189 times) and Zhichun Science and Technology (181 times). Its market sales rate is 9.47 times, comparable to Huachuang (9.35 times), and lower than that of comparable companies Changchuan Science and Technology (24.5 times).
Most organizations believe that the high valuation of SMEs is supported by better growth. Because of the high technical barriers, the valuation of SMEs falls within a reasonable range. According to the electronic team analysis of Pacific Securities, the potential PE in 2018 is only 31 times and that in 2019 is only 22 times if the company is given a valuation of 10 billion yuan. Given a valuation of 14 billion yuan, the potential PE in 2019 is only 30 times higher, and the high-tech barriers of the corresponding companies are also reasonable valuations.
It is understood that the issuance prices of the nine companies are basically in line with the recommended valuation range and market expectations. Analysts point out that although static P/E ratios disclosed in accordance with regulatory requirements are relatively high, investors need dynamic P/E ratios, P/E ratios, enterprise value multiples and other indicators to price and valuate new shares of sci-tech board companies. For the investment institutions, the valuation of STEM is also impacting on the traditional valuation research model. How to accurately evaluate the growth of STEM is also testing the research ability and investment ability of the investment institutions and investors. In the future, we may not use a single index to analyze the company. The new valuation model adapting to the company will come out very soon. An investor in a medium-sized fund company pointed out. Source: Yang Bin_NF4368, Responsible Editor of China Foundation Newspaper
It is understood that the issuance prices of the nine companies are basically in line with the recommended valuation range and market expectations. Analysts point out that although static P/E ratios disclosed in accordance with regulatory requirements are relatively high, investors need dynamic P/E ratios, P/E ratios, enterprise value multiples and other indicators to price and valuate new shares of sci-tech board companies.