With the list of the first batch of coaching companies in the science and technology board, regulators, exchanges,BrokerPreparations for companies and other related parties are in full swing, and many domestic military industrial enterprises are competing to land on the board. Many institutions including Dachen Caizhi, Shunwei Capital, Fengnian Capital, Junchuang Capital, etc. have long been in the military industry, optimistic about the development prospects of military and civilian integration, and grasping the future for a long time, the high-end manufacturing and military industry have made substantial compensation. The opportunities brought about by growth and the space for upgrading are the consensus of venture capital institutions.
Optimistic about military investment
Two main lines
Xinguang Optoelectronics Co., Ltd., a military enterprise in Heilongjiang Province, clearly stated on March 13 that it has prepared for the board.CITIC Construction InvestmentAs a listing counseling organization, it has attracted more attention from the market for military start-ups. Also actively preparing for the battle is the company of the New Third Board listed company Zhongxun Sifang.
The local government is also actively pushing forward, Shaanxi Provincial Local Financial Supervision Bureau, Shaanxi Provincial Science and Technology Department, Shaanxi Securities Regulatory Bureau and Shanghai Stock Exchange. Recently, in Xi'an, the Science and Technology Board Policy Situation Interpretation Meeting and the Key Enterprise Listing Service Matchmaking Meeting were jointly held in Xi'an. It was reported that the Western Superconductor and Platinum Special Enterprises were the vanguards of the Shaanxi Army.
According to the "Regulations on the Registration of Initial Public Offerings of the Science and Technology Board (Trial)" issued by the CSRC and the "Continuous Supervision Measures for Listed Companies of the Science and Technology Board (Trial)", the Science and Technology Board will focus on supporting the next generation of information technology, high-end equipment and new High-tech industries such as materials and strategic emerging industries are geared to enterprises that are in line with national strategies, have core key technologies, have outstanding technological innovation capabilities, and have strong growth potential.
As a combination of information technology, high-end equipment and new materials industry, the military industry bears a major strategic mission of military-civilian integration and development. Enterprises are basically enterprises with high technological content, serving national defense construction and strengthening the country's strategy, combined with the special military industry. Business matching relationship, the enterprises in the military industry generally have the characteristics of “large R&D investment, long benefit period and slow growth rate”, and also face foreign unfair technical blockade. In the high-end components, new materials, commercial aerospace, 3D printing and ocean exploration and many other fields, it is expected to catch up with the science and technology version of the express train, ushered in an important opportunity for the development of the market.
"The development of industry technology in the field of domestic military and civilian integration follows two main lines, and it is also our optimistic layout direction."fundGeneral Manager Yang Wei believes that “the first is the international blockade technology that needs to be broken in China, including the basic components and new materials. Secondly, the military-to-civilian direction, the civilian market has large space and the potential profitability of the dual-use project. Such as commercial aerospace."
According to the Securities Times reporter, Dachen has invested in more than 30 military industrial enterprises. At present, there are three companies in charge of the supervision of the CSRC, which is planning to apply for the board, and there are still many companies preparing to declare the board next year. .
Huang Chen, a partner of Dachen Caizhi and head of the military industry, said, “According to the strategic positioning of the Science and Technology Board, it is mainly aimed at technological innovation enterprises that meet the national strategy, break through the core of key technologies and have high market recognition. The military industry is based on customer attributes. In order to divide the basis of the industry, the comprehensive support of the science and technology board, the new generation of information technology, network security, high-end equipment manufacturing, new materials, integrated circuits and other sub-sectors in the military industry are the key investment directions, including With independent research and development, domestic leading technology, and comparative advantage in the same industry, it is of great significance to the national innovation-driven development strategy, and enterprises with strong development potential and market prospects deserve special attention."
Fengnian Capital, which focuses on military industry segmentation, emphasizes that under the background of uncertainty in the periphery, import-improved advanced manufacturing has ushered in a window of significant development opportunities. Regardless of how the external environment fluctuates, independent innovation, import substitution, and military-civilian integration are always the main lines of Fengnian capital. Fengnian Capital has invested in and managed more than 30 high-end manufacturing and military enterprises in the field of high-end manufacturing and military investment, such as Changzhou Changli Technology, Boya Seiko, Dali Kaipu, etc., and has gradually built up high barriers.
Science and Technology Bureau
Valuation of diversity
As a major “experimental field” for the reform of the national capital market, Kechuang Board has been under the spotlight of the capital market since it was officially announced at the Expo on November 5 last year. It is known as a high-tech entity to open up the “last mile” value investment sector from R&D to market.
Yang Wei said that most of the companies involved in the future of science and technology boards listed in the future are start-up companies. These enterprises generally have the characteristics of high growth, high investment, high risk, etc., and they need a large number in the initial stage and the growth stage of the enterprise life cycle. The funds are used for R&D and expansion. For such enterprises, the traditional P/E valuation method is more obvious. Therefore, the valuation methods of the companies involved in the future will become more diversified.
"Compared with the pricing mechanism of the main board, small and medium-sized board, and the GEM, Science and Technology Board canceled the direct pricing method, fully adopted the market-based inquiry pricing method, and appropriately liberalized the price limit, which further strengthened the information disclosure of enterprises. Huang Wei told the Securities Times reporter, "For the valuation methods of all companies listed in the future, the company will definitely have different valuation logic than A shares. On the one hand, it will become more diversified, on the other hand, It is more relevant to the competitiveness of enterprises (technical leadership, business model innovation, growth, development potential, etc.). For the valuation of military entrepreneurs, it must be analyzed from the perspective of enterprise competitiveness, and cannot be blindly' "Beat the head", it can be said that investors in the future will be more inclined to choose companies with leading technology, reasonable business models, corporate governance standards, and good growth, to make reasonable valuations from the perspective of corporate value, and to practice more rational. investment."
In recent years, China's defense budget has continued to increase. In the most recent 2010 to 2018, the overall annual growth rate of defense expenditure budget was 8.81%.GDPThe compound growth rate is 8.80%, and the military and GDP ratio has remained relatively stable, accounting for about 2%. In 2019, China’s defense budget was 1,198.9 billion yuan, an increase of about 7.5% compared with 2018. National defense expenditure will focus on supporting national defense and military reform, and comprehensively promote national defense and military modernization.
According to Fengnian Capital Research, the total defense budget of the US fiscal year 2019 is 716 billion US dollars (about 4.8 trillion yuan), and China’s total national defense budget is only one-fourth of that of the United States.GDPIn terms of proportion, China's defense expenditure accounts for less than 2% of GDP, and the world's major powers are basically above 3%. From the perspective of per capita defense spending, China's per capita income is only 800 yuan, only 1/16 of the United States.
At the two sessions this year, some representatives pointed out that China's military industrial enterprises generally have problems such as insufficient development momentum and insufficient enterprise vitality. The development of military-civilian integration is an opportunity for the reform of state-owned enterprises. By adopting mixed ownership reform and absorbing foreign capital, it can be largely Promote the reform of the mechanism of military enterprises and activate the vitality of enterprises.
Fengnian Capital believes that the integration of military and civilians as a national strategy is an important breakthrough for national defense construction and economic development. The development of China's economic aggregate must have a corresponding defense system guarantee. Under the background of the era when the whole party and the whole army closely support the integration of the military and the people, China’s military-civilian integration is only the beginning. The integration of the military and the people is a great construction plan for the next ten, twenty or even thirty years, and the Chinese nation. The long-term blueprint for the revival and the Chinese dream is in the same vein. The field of national defense science and technology and weapons and equipment is the focus of the integration of military and civilian development, and is also an important indicator for measuring the level of integration of military and civilian development. At present, China’s weapons and equipment still have a gap of 20 to 30 years with the US military. It is necessary to learn a lot from the advanced weapons and equipment of foreign countries, especially the US military, and promote the mechanization, informationization and modernization of our army. This is also the area of concern for Fengnian Capital. one.
(Article source: Securities Times)