Ningde era IPO: is expected to become the first market value of GEM stock refining?

On May 18th, the Ningde era was approved by the Securities Regulatory Commission for IPO and became the unicorn company proposed by the Securities and Futures Commission to open the New deal for the "immediate report and review" green channel of the IPO in the four major industries of biotechnology, cloud computing, artificial intelligence, and high-end manufacturing. The third unicorn company to be listed.

On May 22, the Ningde era disclosed a letter of intent for offering shares, and it is proposed to issue no more than 217 million shares, accounting for no less than 10.00 shares of the total share capital after issuance, and raise approximately 5.352 billion yuan. The requisition date is May 30, and the top requisition must be matched with the market value of 650,000 yuan. From the time of filing to approval of the IPO, the Ningde era took only six months.

According to the prospectus, from 2015 to 2017, the operating income of Ningde era was 5.73 billion yuan, 14.879 billion yuan and 199.97 billion yuan, respectively, and the net profits attributed to the parent company were 93.1 billion yuan, 3.022 billion yuan, and 3.972 billion yuan. After the listing, its net profit belonging to the parent company in 2017 will be only lower than the shares of Wen, ranking second in the GEM.

Lithium battery plate faucet

The Ningde era occupied a leading position in the global power battery field. According to the prospectus, the sales volume of the power battery in 2017 in the Ningde era was 11.84 GWh, ranking first in the world. Prior to 2015 and 2016, the Ningde era ranked third in the world, second only to Panasonic and BYD. Judging from the domestic market, Ningde era power battery sales in 2017 market share as high as 27, ranking first.

According to the latest prospectus, the funds raised were mainly invested in the Ningde Lake West Lithium-ion Power Battery Production Base Project and Ningde Power and storage battery Development Project. Among them, the products of the West Lake Lithium-ion Power Battery Production Base mainly include power battery cores, modules and battery packs. The proposed investment is 9.86 billion yuan, and the construction land area is 385 acres. The project will build 24 production lines, a total annual production capacity of 24 GWh power battery products. The power and energy storage battery R&D project plans to invest 4.2 billion yuan. The research and development direction mainly includes new energy passenger vehicle power batteries, new energy commercial vehicle power batteries, energy storage batteries, and next-generation batteries.

Established in 2011, restructured in 2015, became the industry leader in 2017, and listed in 2018. The development rate of the Ningde era is already quite fast. This amazing growth rate, on the one hand, is due to the rapid rise of the new energy automotive industry under the support of state policies, and the subsequent attention of capital to the new energy industry chain; On the other hand, the company's technology for new energy car power batteries is also accurate. According to the company's prospectus, from 2015 to 2017, the proportion of the company's R&D expenses in the main business income was 4.93, 7.27, and 8.02, respectively, which was basically higher than the industry average.

The international car giant leads the big wave of electromagnetism, and lithium battery expansion will speed up. According to observations, international traditional car companies including Mercedes-Benz, BMW, Audi, etc. have all started their layout in the field of electromagnetism. Under the premise of government leadership, traditional auto giants have also begun to layout. In the face of the increasing electric rate of the major car companies, the upstream lithium battery industry will enter a period of high production expansion.

60 % decrease in expected funding

It is worth noting that the amount of 535.2 billion yuan disclosed in the company's latest prospectus has fallen by about 60 % from the 13.1 billion scale of the pre-disclosed prospectus. The prospectus also stated that "if the actual amount of funds raised by this issue is less than the amount of funds to be invested in the above-mentioned project, the shortfall will be resolved by the company itself to ensure the smooth implementation of the project. "

This is not the first time the unicorns IPO has shrunk. Prior to this, Yaomingkangde had planned to raise funds of no more than 5.741 billion yuan, but the final fundraising amount was 2.251 billion yuan. Even so, the 535.2 billion yuan in fundraising will also create the highest number of GEM fundraising: The highest amount of GEM fundraising was 2,55.3 billion yuan from Biyuan. With a total of 5.352 billion yuan in fundraising, calculated by issuing 10 shares, before the listing of Ningde era, the market value was as high as 53.5 billion yuan.

According to current market forecasts, the market value after the listing of the Ningde era is expected to exceed 100 billion yuan, or exceed the current GEM's "market value King" Wen's shares, becoming the listed company with the highest market value of GEM.

Statistics show that as of May 22, the market value of Wen's shares was 129.8 billion yuan. After the Ningde era, whether it can exceed this level after listing, and wait for the market to give an answer.

Alert to industrial policy risks

In the Ningde era prospectus, the power battery system sales are the company's most important source of income. Since the start of the National new energy vehicle promotion pilot in 2009, our country has been implementing the new energy vehicle subsidy policy. With the development of the new energy vehicle market, the state has also adjusted its subsidy policy. Overall, however, the subsidy policy shows a tendency to tighten the amount and gradually increase the technical standards.

The change of the new energy car industry policy has a certain influence on the development of the power battery industry, which in turn affects the company's product sales and operating income. If policies recede beyond expectations or if there are significant adverse changes in related industrial policies, they may have a significant negative impact on the company's operational performance.

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