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Foxconn IPO approval has come: 5 big suspense solution

via:CnBeta     time:2018/5/12 8:32:17     readed:495

What kind of surprise will Foxconn bring to the A-share market? Fund Jun combed five suspense.

Suspense 1: Can the market value exceed 500 billion?

The highest A-share technology stock market value is Hikvision's 366.9 billion yuan. Can Foxconn surpass Hikvision after its listing and can it surpass the 500 billion mark?

Suspense 2: How big can IPO raise funds?

Although Foxconn’s report has not disclosed the number of shares issued, the issue price and the amount of funds to be raised. However, the total investment of the raised investment projects is still there, and the total investment of the eight major investment projects is as high as 27.253 billion yuan.

The prospectus shows that the raised investment funds are mainly focused on the construction of industrial internet platforms, cloud computing and high-performance computing platforms, high-efficiency computing data centers, and communications networks.cloud serviceFive parts are invested in equipment, 5G and Internet of Things connectivity solutions, R&D and application of new intelligent manufacturing technologies, smart manufacturing industry upgrades, and smart manufacturing capacity expansion.

Let's take a look at specific fundraising projects, and simply list them:

The first industrial internet platform was constructed with a total investment of 2.17 billion yuan.

The second cloud computing and high-performance computing platform has a total investment of 1.005 billion yuan.

The third high-efficiency computing data center has a total investment of 1.216 billion yuan.

The fourth communications network and cloud service equipment have a total investment of 4.968 billion yuan.

The fifth 5G and Internet of Things interconnection solutions have a total investment of 633 million yuan.

The sixth smart manufacturing technology research and development application has a total investment of 5.108 billion yuan.

The seventh smart manufacturing industry was upgraded with a total investment of 8.662 billion yuan.

The eighth smart manufacturing capacity expansion has a total investment of 3.545 billion yuan.

Above, the total investment of the eight major projects totaled 27.253 billion yuan.

Foxconn’s previously announced fundraising amounted to 27.2 billion yuan, how much it can actually raise, and some variables. If it is calculated at 27.2 billion, it will be the largest in recent years.

Suspense 3: Can you drive technology stocks out of a market?

Foxconn Technology will be the leader of technology stocks whether or not it exceeds Hikvision. The issuance and listing of this company may have a greater impact on the entire technology stock market. There are also some industry chain related companies that deserve close attention!

Suspense 4: Will it be affected by the recent downturn of Hong Kong stocks unicorn?

The latest listed safe doctors performed poorly, and many unicorns listed in the last year or two. After ZhongAn Online, Yuewen Group, Yixin Group, Razer and other stocks fell from their highs, their share prices have fallen. The performance of unicorns is evident.

And Xiaomi, who recently applied for listing in Hong Kong, has also lowered its valuation. According to Bloomberg News on May 9th, Beijing time, people familiar with the matter said Xiaomi's current valuation is likely to be somewhere between $60 billion and $70 billion.

From 100 billion U.S. dollars to 70 billion U.S. dollars, the valuation dropped by 30%.

Foxconn's performance in the market value of A shares, we wait and see.

Suspense 5: How much can Taiwan's richest man Gou Ting up?

According to Forbes's ranking in 2018, Terry Gou was worth $8.5 billion and ranked first in Taiwan.

Although Foxconn has no actual controller, Foxconn’s indirect controlling shareholder, Hon Hai’s first major shareholder, is Terry Gou. Its indirect holding of the A stock market value will bring an improvement to his net worth.

More reports can be found in the article written by the fund in February this year.

Foxconn will come to A shares: net profit turned 99% A-share company, market value or over 500 billion, spike 360?

1. Foxconn, the world's largest foundry, has to offer shares

Yesterday evening, the prospectus of the Foxconn Industrial Internet Co., Ltd. (draft) was issued by the China Securities Regulatory Commission.websitePre-disclosure is planned to be listed on the Shanghai Stock Exchange.

This company has the title of the world's largest foundry, the company's controlling shareholder is Zhongjian Company (41.14% shareholding before the issuance). Zhongjian Company is an investment holding company and Hon Hai Precision indirectly holds 100% of its shares.

The largest domestic technology company is Hikvision more than 3400 billion, and 360 backdoors are more than 3400 billion. If Foxconn can successfully market, it is likely to become the leading technology stock in A-share market.

The prospectus shows that since Foxconn does not have an actual controller, Foxconn Industrial Internet has no actual controller. However, in the minds of the public, Taiwan’s richest man, Gou, is the company’s big boss as the founder of Hon Hai Precision and Foxconn.

Although everyone likes to call Foxconn the world's largest foundry, Terry Gou believes Foxconn is not just a foundry. In attending the Fortune Global Forum in December 2017, Terry Gou said that when he invited me to give a speech, he introduced us as the largest OEM manufacturing company in the world. Actually, we were not only an OEM for 20 years.

Gou Ming-ming said, “We used AR very early. In fact, our company has accumulated so much experience for many years. We are not a traditional manufacturing industry. We can already help our clients tailor-made and even help customers choose and recommend him. Which kind of material is used, like this bottle of water, the boss can see me. I can tell him what materials you use and how many sizes you use. When people open water, they won't leak out. This is technology."

This can also be seen from the name of Foxconn to be listed, "Industrial Internet Corporation."

In fact, as early as December 2017, Hon Hai Precision listed on the Taiwan stock market disclosed Foxconn's information to be listed. Hon Hai Precision Precision announces on the Taiwan Stock Exchange that the board of directors passed its subsidiary Foxconn Industrial Internet Co., Ltd. for the first timeDevelopmentThe Bank issued ordinary shares in RMB and applied for listing on the Shanghai Stock Exchange.

Then on January 31, 2018, Hon Hai held an extraordinary meeting of shareholders and the general meeting of shareholders approved the listing plan for Foxconn Industrial Internet. At the shareholders’ meeting, Chairman Terry Goh once again stated that Hon Hai is not just a foundry. “The outside world thinks Hon Hai is a foundry, linking the company with Apple, but Hon Hai will transform from a hardware to a software company.” , Hon Hai Precision was founded in 1974 by Gou Ming-ming. It is the parent company of Foxconn Group and is known as the "original foundry giant" of electronic products all over the world.

In the prospectus, Foxconn introduced itself as “The company is a global leader in the design and manufacture of communications network equipment, cloud service equipment, precision tools and industrial robots.”

2. Net profit is nearly 16 billion yuan. Analysts expect a market value of 250 billion yuan.

As mentioned above, we are probably emotionally aware of Foxconn. Next, we will continue to use the prospectus to continue to understand Foxconn’s shareholders and financial status.

Foxconn's latest list of shareholders, there are 33 shareholders, holding a total of 17.726 billion shares, the largest shareholder (controlling shareholder) backbone technology shares 7.293 billion shares, accounting for 41.14%.

Foxconn’s number of employees is also among the top 10 in the A-share market, second only to Sinopec Sinopec, the four largest banks, plus China Ping An and China Railway. The total number of employees is 269,000 yuan, including 160,000 employees under the age of 30, accounting for about 60%.

Foxconn efficiency is the draft, such a large company, a number of related subsidiaries, the February 1st report of the material, put the 2017 financial data are all out.

Financial data has a large volume, a high debt ratio, and a low growth rate in revenue. Foxconn’s total assets as of the end of 2017 were as high as 148.596 billion yuan, total liabilities were 120.441 billion yuan, and the debt ratio was as high as 81.05%.

In the most recent three years, the operating revenues of 2017, 2016, and 2015 were not 354.544 billion yuan, 272.713 billion yuan, and 272.799 billion yuan respectively, and the net profits attributable to shareholders of the parent company were 15.861 billion yuan, 14.636 billion yuan, and 14.35 billion yuan, respectively. . The volume is large, but the growth rate is not high.

Since Foxconn is too efficient, most A-share companies have not yet issued their 2017 annual reports, and we may wish to compare them with the 2016 annual net profit. Foxconn's net profit of 14.366 billion yuan can rank 30th among all 3490 A-share companies, surpassing 99% of A-share companies and second to China Railway Construction's 14.851 billion yuan.

凌晨突发!富士康IPO批文来了,5大悬念待解!

For Foxconn's valuation after the A-share listing, a fund manager said that because the company's growth rate is not high, giving a price-earnings ratio of about 15-20 times, it is expected to be between two and three hundred billion yuan in normal valuation. However, due to the scarcity of such giants in the A-shares, Foxconn does not rule out a higher price-earnings ratio and market value. If the price-earnings ratio is about 30 times, together with the issuance of new shares, the market value of more than 500 billion is also very likely.

According to statistics, Foxconn’s controlling shareholder Hon Hai Precision’s latest market value on the Taiwan Stock Exchange was NT$156.1 billion, equivalent to RMB325.7 billion.

3. The total investment of the eight major investment projects is 27.253 billion yuan

Although Foxconn’s report has not disclosed the number of shares issued, the issue price and the amount of funds to be raised. However, the total investment of the raised investment projects is still there, and the total investment of the eight major investment projects is as high as 27.253 billion yuan.

The prospectus shows that the raised investment funds are mainly focused on the construction of industrial Internet platforms, cloud computing and high-performance computing platforms, efficient computing data centers, communications networks and cloud service equipment, 5G and Internet of Things interconnection solutions, and research and development of smart manufacturing technologies. Applications, smart-manufacturing industry upgrades, and smart-manufacturing capacity expansion will be invested in eight parts.

Let's take a look at specific fundraising projects, and simply list them:

The first industrial internet platform was constructed with a total investment of 2.17 billion yuan.

The second cloud computing and high-performance computing platform has a total investment of 1.005 billion yuan.

凌晨突发!富士康IPO批文来了,5大悬念待解!

The third high-efficiency computing data center has a total investment of 1.216 billion yuan.

The fourth communications network and cloud service equipment have a total investment of 4.968 billion yuan.

The fifth 5G and Internet of Things interconnection solutions have a total investment of 633 million yuan.

The sixth smart manufacturing technology research and development application has a total investment of 5.108 billion yuan.

The seventh smart manufacturing industry was upgraded with a total investment of 8.662 billion yuan.

The eighth smart manufacturing capacity expansion has a total investment of 3.545 billion yuan.

Above, the total investment of the eight major projects totaled 27.253 billion yuan.

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