Key Words Of Intelligent Manufacturing Investment In Investment And Financing Research: Cash Out Of Dividend, Acceleration Of Import Substitution, Influx Of Industrial Giants, And Popularity Of Chip Semiconductors

The manufacturing industry, as the most important equipment of our country, is attracting more capital attention.

Since March this year, the new infrastructure construction, gem registration system, and the new pattern of dual circulation have further promoted the enthusiasm of capital to assist the high-quality development of manufacturing industry.

Based on the data of Qingke research center and China Investment Research Institute, it can be found that the impact of the epidemic on the investment and financing activities of enterprises in the field of intelligent manufacturing is concentrated in the first quarter of 2020. In the second quarter, although the volume of investment and financing decreased month on month, the amount of investment has returned to the level before the epidemic.

From the perspective of exit mode, IPO is still the main exit mode of PE / VC firms, accounting for more than 84%; it is worth noting that more than 60% of the intelligent manufacturing related enterprises supported by PE / VC firms are listed in the science and technology innovation board market from July 2019 to June 2020.

Since July this year, the venture capital team of 21st century economic report has sorted out the changes that are taking place in the field of intelligent manufacturing investment and financing based on the industry investment and financing data and investor interviews since the second half of 2019.

The change of international situation leads to the restriction of import and the acceleration of import substitution

On July 30 this year, the Political Bureau meeting of the CPC Central Committee proposed to speed up the formation of a new development pattern with the domestic big cycle as the main body and the domestic and international dual circulation promoting each other. For investors, "domestic big cycle as the main body" will further encourage investment in localization substitution and independent controllable fields.

In the field of intelligent manufacturing, in the past, VC firms were limited by the duration of funds and could not invest in the manufacturing field with heavy assets and long cycle. Policy incentives and the appearance of capital market dividends are expected to mobilize the enthusiasm of social capital. In addition to the existing demand for intelligent upgrading of manufacturing industry, PE / VC companies will be able to participate more in the investment of intelligent manufacturing theme.

Specifically, there are segmentation opportunities in the sectors where the listing standard of the science and technology innovation board is biased and the related fields of strategic emerging industries, which can be participated by early funds and growth funds. According to the investment and financing data under the theme of intelligent manufacturing from July 2019 to June 2020, semiconductors and electronic equipment are the most attractive investment fields.

Aerospace chips and other commercial fields are popular

Two years ago, semiconductor circuit manufacturing has attracted little attention from the public. In the second quarter of this year, the investment in it chips increased by 65% year on year. Among them, companies such as easway and Bilin technology have obtained more than 1 billion yuan of investment in the early stage of entrepreneurship.

In the past, the key reason for semiconductor industry to rely on the core technology of semiconductor chip and heating equipment is that on the one hand, the core of semiconductor industry depends on imported technology. However, the great changes in the international situation have led to the need for domestic equipment manufacturers to find alternative solutions, forcing domestic self-reliance and bringing the industry opportunities of independent control and import substitution. On the other hand, the market demand of chip semiconductor industry is in China, and professional talents are also accumulated in China.

In addition to the investment boom in chip semiconductors, in recent years, SpaceX has driven the global low orbit constellation construction boom, and the domestic commercial aerospace market has also entered the fast track of development. Several institutions such as China Science and technology innovation star have focused on this field.

The policy dividend of capital market will bring about a good exit, and the investment logic of primary market will change

The launch of the science and technology innovation board in July 2019, together with the launch of the registration system on the gem this year, has made the listing path of intelligent manufacturing enterprises more smooth. Many investment institutions focusing on intelligent manufacturing also ushered in the best IPO performance in history this year.

Second, the investment environment of secondary manufacturing institutions will change. First of all, due to the good performance of listed enterprises in the capital market, the investment enthusiasm of intelligent manufacturing enterprises in the primary market is getting higher and higher, and the enterprise valuation is also rising. Some investors have disclosed that the recent rise in the valuation of intelligent manufacturing enterprises has reached 20%.

At the same time, some intelligent manufacturing enterprises with a profit of about 10 million yuan may continue financing development and seek listing after their profits continue to expand. But now, because of the relaxation of the profit requirements of enterprises, these enterprises even begin to consider listing directly. This leads to the reduction of investment targets in the primary market, and the demand point of enterprises for investment institutions will not only be funds.

On the one hand, institutions tend to invest early and invest small, looking for intelligent manufacturing enterprises that are still in the early stage of development and have low valuation. On the other hand, in the current transformation and upgrading of the manufacturing industry, in addition to capital, the industrial empowerment strength that institutions can bring is one of the core factors determining whether they can invest in the enterprises they like.

Industrial capital accelerates to enter, and PE / VC capital complement each other

21. According to the analysis in the investment and financing research of Pan TMT in the last issue, industrial giants are becoming important participants in Pan TMT investment. This phenomenon is also obvious under the theme of intelligent manufacturing.

According to the data of Qingke Research Center, Xiaomi is the most active investor in intelligent manufacturing related topics, and the number of sales from July 2019 to June 2020 ranks the top five. From a longer time line, more active industrial investors also include Intel Capital, BAIC investment, SAIC investment, Hubble investment, Shangtang technology, etc.

Industrial investment institutions participate in the financing of start-up enterprises in the field of intelligent manufacturing. In addition to the common reasons such as maintaining the sensitivity to innovative technologies and products, extending the industrial chain upstream and downstream and business expansion, the driving force is also based on the supply chain security and looking for technology landing scenarios.

Taking Xiaomi as an example, its fund management company, Hubei Xiaomi Changjiang Industrial Investment Fund Management Co., Ltd., was established in 2017. In the last half year alone, 10 Investments, accounting for 83.33%, have been invested in the IC equipment manufacturing sector. Looking back on the investment records of this industrial background investment institution in the past three years, the top five sub areas with the largest distribution of projects are electronic components, chips, semiconductors, high-end manufacturing and integrated circuits.