On February 15, Shenzhen Han’s CNC Technology Co., Ltd. (hereinafter referred to as “Han’s CNC”) issued an announcement on the initial public offering of shares and listing on the Growth Enterprise Market, and conducted an online roadshow for listing.
According to the announcement, according to the preliminary inquiry results, the issuer and the sponsor (lead underwriter) have negotiated and determined that 42 million new shares will be issued this time, and there will be no transfer of old shares in this issuance. Calculated at the issue price of 76.56 yuan per share.
There are reasons for the spin-off: the rapid growth of the PCB equipment business
In 2021, Han’s Laser’s performance will continue to refresh its own records and usher in a new peak of development. Among them, special equipment for the PCB industry is a major growth business. In terms of revenue data, in 2020, the operating income of Han’s CNC will reach 2.210 billion yuan, accounting for 18.51% of the total revenue of Han’s Laser. 25.43% of total revenue.
From January to September 2021, Han’s CNC’s operating income was 2.86 billion yuan, operating profit was 504 million yuan, and net profit was 451 million yuan, an increase of 74.89%, 74.41% and 76.79% respectively over the same period last year. The main reason for the substantial growth was the growth in downstream demand. With the upgrade of 5G communication network and the further development of big data, the demand of the PCB industry has been driven by rapid growth. Downstream PCB manufacturers have actively increased their capital expenditures on PCB special equipment. The company has a leading position in the PCB special equipment industry. Rapid growth.
Han’s CNC was established in 2002. As the only PCB business platform of Han’s Laser, its main business is the research and development, production and sales of special PCB equipment, and maintains a high degree of business independence from other business segments of Han’s Laser. After the spin-off, Han’s Laser (except Han’s CNC and its holding subsidiaries) will continue to focus on the development of businesses other than the main business of Han’s CNC, and further enhance the independence of Han’s Laser.
The projects raised by Han’s CNC in this listing mainly include the reconstruction and expansion project of PCB special equipment production and the construction project of PCB special equipment technology research and development center. As of the signing date of the prospectus, the shareholding structure of Han’s CNC is shown in the following figure:
Extensive product line layout and great growth potential in downstream applications
PCB (Printed Circuit Board), the Chinese name is printed circuit board, is the carrier for the electrical interconnection of electronic components. Because it is made using electronic printing, it is called a “printed” circuit board. PCB special equipment can be mainly divided into two categories: production equipment and testing equipment. The production equipment mainly includes drilling equipment, molding equipment, photopainting equipment, automatic exposure equipment, lamination equipment, electroplating equipment, etc. The testing equipment mainly includes automatic optical inspection equipment equipment, impedance test equipment, hole position inspection equipment, etc.
The PCB industry chain includes upstream raw materials, midstream substrates and downstream PCB applications. The terminal application industries served by PCB special equipment include 5G communications, consumer electronics, automotive electronics and other industries. According to Prismark data, the total output value of the global PCB industry in 2018 reached US$62.396 billion, a year-on-year increase of 6.0%. Affected by factors such as trade frictions, the output value in 2019 decreased by 1.7% year-on-year, but in 2020, driven by the strong demand for computing equipment, PCB The industry achieved a substantial growth of 6.4%, and the output value is expected to reach 65.219 billion US dollars. In the next few years, the PCB industry is expected to maintain a relatively high growth rate, with an output value of US$86.325 billion in 2025 and a CAGR of 5.8% in 2020-2025.
In terms of product layout, Han’s CNC is one of the companies with the most extensive product lines among the global PCB special equipment companies. In addition, the company has ranked first in the top 100 Chinese electronic circuit industry rankings (specialized instruments and equipment) released by CPCA for 12 consecutive years, and its subsidiary Maison Electronics has ranked fourth for seven consecutive years. The sales volume of its main products is in the industry stay ahead of the curve.
R&D expenses increase year by year Competing with internationally renowned companies
Since its birth in the 1930s, the PCB industry has experienced more than 80 years of development. Developed countries such as Europe and the United States started earlier. Before 2000, more than 70% of the global PCB output value was distributed in the Americas, Europe and Japan. With the continuous transfer of the PCB industry to China, domestic PCB special equipment companies have also begun to develop gradually. However, due to the late start of the industry, there is still a technical gap with foreign companies.
Although Han’s CNC is an industry-leading enterprise in its business field, the PCB special equipment industry has the characteristics of technology-intensive and needs to be based on the substrate thickness, aperture size, line width and line spacing, production scale, reliability requirements, and customer requirements of end products. The R&D and design of the whole machine requires the company to have rich technical reserves and a large number of R&D talents.
At the same time, all types of products of Han’s CNC PCB equipment are facing fierce competition from many international leaders. In order to achieve technological breakthroughs and cope with international competition, the company has built a complete R&D system. In the past three years, R&D expenses have increased year by year, with an average annual compound growth rate of over 25%. As of June 30, 2021, the company has a total of 443 R&D personnel, accounting for about 27% of the total number of R&D personnel. There are more than 50 R&D personnel with more than 10 years of experience in the industry. Some senior R&D personnel joined the company in the early days of its establishment; the company has obtained With 165 invention patents and 150 software copyrights, it is in a leading position among comparable companies in the same industry.
At present, Han’s CNC has built core technologies covering four key processes of PCB through independent research and development and innovation. Competition from internationally renowned companies such as L&M.
Image source: Han’s CNC prospectus
Original title: Han’s CNC will be listed soon and the new share price will be 76.56 yuan per share