Beyond expectations, the first stock of the Science and Technology Innovation Board was born!
According to the official website of the Shanghai Stock Exchange on the 18th, the registration of Yantai Ruichuang Micro Nano Technology Co., Ltd. and Suzhou Huaxing Yuanchuang Technology Co., Ltd. on the Science and Technology Innovation Board has taken effect.
According to the announcement, Suzhou Huaxing Yuanchuang Technology Co., Ltd., abbreviated as "Huaxing Yuanchuang", with stock code "688001" and online subscription code 787001, will become the first stock on the Science and Technology Innovation Board.
According to the issuance schedule, the issuer will conduct a management offline on-site roadshow promotion from June 19-21, 2019 (T-6 to T-4); The preliminary inquiry period is from 9:30 to 3:00 on June 21st to June 24th (T-4th to T-3rd); Determine the issuance price on June 25th (T-2nd); Online roadshow on June 26th (T-1st); June 27th (T day) is the issuance and subscription date, determining whether to initiate a callback mechanism and the final number of online and offline issuances, as well as online subscription allocation numbers; On July 3rd (T+4th), the "Announcement of Issuance Results" and "Prospectus" were published.
Huaxing Yuanchuang was accepted by the Shanghai Stock Exchange on March 27th. Previously, Anji Microelectronics, Tianzhun Technology, and Microchip Biotechnology were the first to pass the first review meeting of the Municipal Party Committee on the Science and Technology Innovation Board in 2019. The three companies applied for registration with the China Securities Regulatory Commission on June 11, but have yet to be approved. However, after applying for registration with the China Securities Regulatory Commission on June 13th, both Huaxing Yuanchuang and Ruichuang Microelectronics were approved on June 14th.
That is to say, Huaxing Yuanchuang only has 8 days between passing the review of the Shanghai Municipal Committee and the official IPO. Compared to the enterprises that passed the first round of review by the Shanghai Municipal Party Committee, Huaxing Yuanchuang has achieved a last come, first served approach.
Financial status of the company
Testing equipment and testing fixtures are the main sources of revenue for the company. From 2016 to 2018, the main business revenue was RMB 516 million, 13.70 million (+165.50%), and 1.005 billion (-26.63%), respectively. The net profit attributable to the parent company was RMB 180 million, 2.10 million (+16.29%), and 243 million (+16.03%), respectively. R&D expenses accounted for 9.25%, 6.83%, and 13.78%, respectively.

The integrated circuit industry may benefit from it

It is understood that Huaxing Yuanchuang is a leading provider of testing equipment and full line testing system solutions in China, mainly engaged in the research and development, production, and sales of testing equipment for flat panel displays and integrated circuits. The company's main products are applied in industries such as LCD and OLED flat panel displays, integrated circuits, and automotive electronics. The company has become a high-quality partner for many well-known domestic and foreign enterprises such as Apple, Samsung, LG, and BOE.
According to the research by the Wang Jun Strategy Team of Bank of China International, the impact of the Science and Technology Innovation Board on the existing valuation system mainly includes demonstration effect and diversion effect. The demonstration effect refers to the driving effect on comparable sectors and companies, as newly listed stock sectors often have new valuation systems and secondary stock premiums, which enhances their existing valuation levels. The diversion effect refers to the assumption that the total amount of funds in the stock market does not change much, as investors purchasing stocks in the new market will form a diversion of funds, which will put pressure on the valuation of existing stocks.
The Wang Jun strategy team pointed out that from the perspective of individual stock impact, the short-term impact on the valuation of benchmark leading technology stocks is not significant, but the demonstration effect will be reflected later. Through historical retrospective analysis of the four leading technology stocks, it was found that the valuation level of the ChiNext board's launch varies in the short term, and the valuation impact of the leading targets is not significant. But 30 days after the official listing on the ChiNext, the valuation levels of the four representative technology stocks showed varying degrees of upward trend. From this, it can be seen that although benchmarking against leading technology stocks may lead to strong short-term diversion effects due to capital market fund diversion in the short term, the valuation level will still be improved in the medium term under the mapping effect of the ChiNext board, and the demonstration effect will be reflected to a greater extent.
Securities firms welcome their second spring?
With the birth of the first stock on the Science and Technology Innovation Board, the concentrated listing date on the board is gradually approaching, and the securities sector may directly benefit.
Dongguan Securities pointed out that the rapid birth of the Science and Technology Innovation Board indicates that the reform of the capital market supply is advancing rapidly, and more reform measures are expected to be implemented beyond expectations, injecting more vitality into the capital market, driving the stabilization and recovery of the stock market, and promoting the increase of securities firm valuations. In addition, in the primary market, the Science and Technology Innovation Board adopts market-oriented pricing, which may increase the phenomenon of overvalued issuance by enterprises; In terms of the secondary market, due to the past habit of speculating on new stocks in the market, and the imbalance between supply and demand caused by the small number of listed companies in the early stage of the Science and Technology Innovation Board, the first batch of stocks traded on the board may have a higher valuation under the combined effect of the primary and secondary markets, which is expected to drive up the valuation of similar companies in other sectors, bringing about a simultaneous increase in market volume and price, and benefiting the performance of securities firms.
In addition, the Science and Technology Innovation Board can bring IPO underwriting income, trading commission income, capital intermediary income, research services, custody services, follow-up investment income, etc., and show a phenomenon of top concentration, mainly due to the strong contracting and undertaking ability of top securities investment banks, larger capital scale, higher risk management level, and market financing ability. Dongguan Securities believes that the opening of the Science and Technology Innovation Board is imminent, and securities firms with large financing scales sponsored by companies will benefit the most.