The trend of mergers and acquisitions and restructuring concepts has diverged.

Jingfeng Mingyuan (688368.SH) fell by more than 11% yesterday, and the "14 boards" Songfa shares and the "7 days and 6 boards" Chuanfa dragon python fell to the limit.

Their common features are:

Either it has been hyped to approach an all-time high, or it has hit a new all-time high (loose hair).

From the perspective of Jingfeng Mingyuan alone, in just 14 trading days, the stock price has exploded from less than 50 yuan to 125 yuan + (9.26-11.5, a cumulative increase of 152.57%), which is only one step away from the historical high.

Today's long black candlestick indicates that there is a significant divergence in market funds on the current prices of the three companies.

Zhejiang University acquired Tsinghua University

In fact, in the mad bull market in late September, Jingfeng Mingyuan walked out of a decent rebound, and the stock price rushed to 92 +, and then entered a sideways.

On the evening of October 21, Jingfeng Mingyuan disclosed that it was planning a major asset restructuring, and planned to purchase the control of Yichong Technology by issuing shares, issuing directional convertible bonds and paying cash, and at the same time planned to raise matching funds.

This has once again ignited the market's enthusiasm for capital buying.

Before the disclosure of this matter, the company's shares had risen by 32.87% in two trading days, and the first day of resumption of trading recorded a daily limit again

The stock price has risen from 78 yuan + to 125 yuan +.

What's more interesting is that this is an acquisition between top students:

Zhejiang University acquired Tsinghua University.

Jingfeng Mingyuan is mainly engaged in the R&D and sales of power management chips and control driver chips, and its product matrix covers LED lighting power supply chips, motor control driver chips, AC/DC power supply chips and DC/DC power supply chips, all of which belong to the category of power management and control driver chips in the analog chip industry.

Yichong Technology is an enterprise specializing in the R&D, design and sales of high-performance analog chips and mixed-signal chips such as wireless charging chips, general charging chips, automotive power management chips, AC/DC power chips and protocol chips.

The actual controllers of Jingfeng Mingyuan are Hu Liqiang and Liu Jieqian, both of whom graduated from Zhejiang University. Among them, Hu Liqiang directly holds 24.35% of the shares, and Hu and Liu also hold 16.23% of the shares through Hainan Jingzherui.

Pan Siming, the actual controller of Yichong Technology, graduated from the Department of Electrical Engineering of Tsinghua University with a bachelor's degree, and then obtained a doctorate degree from the Missouri University of Science and Technology in the United States.

After graduation, Pan Siming first worked for Cisco in the United States as a scientist in the innovation technology R&D center of the company's Silicon Valley headquarters, and then went to Apple as an iPhone system design and architecture engineer.

In August 2014, Pan Siming founded Easy-Punch Wireless in Silicon Valley, California, and in February 2016, he founded Easy-Punch Technology in Chengdu.

The valuation is not low

After the establishment of the founder's famous school, Yichong Technology has received a total of 15 rounds of financing.

Judging from the disclosed shareholding structure, there is no shortage of star capital and foreign capital in Yichong Technology, such as: Shenzhen Innovation Capital, SAIC Chuangyong, Geely Investment, VIS (Taiwan Wafer Foundry) and CASREVFundII-USDL.P.

One hand talent, one hand capital. The core technology and product performance of its wireless charging products have kept pace with international manufacturers, replacing a considerable part of the market share of international manufacturers, and helping the domestic substitution and overseas strategy of wireless charging chip products.

According to the disclosure, Yichong Technology has become one of the world's leading companies in wireless charging chips, and the market share of wireless charging products ranks first in the non-IOS mobile phone market in the world.

In the field of automotive power management chips, Yichong Technology has also continued to make breakthroughs, developing LED driver chips for headlights and taillights of smart cars, high/low side switch drivers, automotive eFuse chips and automotive DC/DC chips and other products. In one fell swoop, it became one of the few domestic suppliers of LED driver chips for successful mass production of automotive intelligent headlights, realizing the replacement of international manufacturers.

Yichong has entered the brands of Mercedes-Benz, Volkswagen, Toyota, BYD, SAIC, Geely, Chery, NIO, Wenjie, Xiaopeng, Ideal, Changan, Hongqi and so on.

It is worth mentioning that as early as 2018, Yichong Technology was selected as a national gazelle enterprise. After that, it was selected into the list of "2023 Hurun Global Cheetah Enterprises".

According to the Hurun Research Institute, gazelle companies are generally valued at $500 million to $1 billion, and one of the criteria for global cheetah companies is that "companies must be high-growth and most likely to reach a unicorn-level valuation of $1 billion within five years."

According to this, the valuation of Yichong Technology is at least more than 3.5 billion yuan.

For Jingfeng Mingyuan, which currently has a market value of less than 10 billion, this transaction is very large.

are all losing

As for why the acquisition?

This obviously touched the soul of Jingfeng Mingyuan.

Affected by the economic downturn, the contraction of terminal consumption and the backlog of inventory in the downstream of the industry, Jingfeng Mingyuan recorded a loss and halved its revenue in the fourth year of listing.

In 2022, Jingfeng Mingyuan recorded a net loss attributable to the parent company of 206 million yuan, deducting a non-net loss of 307 million yuan. This year, the company achieved revenue of 1.079 billion yuan, a year-on-year decrease of 53.12%.

After that, the company's revenue showed a slow recovery trend, but it did not achieve a turnaround.

The problem is mainly in the LED lighting power chip business.

After the revenue of this business decreased by 57.29% year-on-year to 906 million yuan in 2022, it has not come out so far. In 24H1, it fell by 7.36% again, and the revenue contribution rate has dropped to 60.27%.

You must know that LED lighting power chips used to be the main source of the company's revenue (revenue increased from 665 million yuan in 2017 to 2.121 billion yuan in 2021, with a CAGR of 33.62%), and the revenue contribution rate continued to exceed ninety%.

Although, Jingfeng Mingyuan has been "buying, buying, buying", trying to get out of the predicament, but with little success.

This time, the strength of Yichong Technology should not be underestimated.

One reality is that Yichong has not yet achieved profitability. From January to July 2024, the revenue will be 590 million yuan and the net loss will be 77.3084 million yuan.

Prior to this, in 2022 and 2023, the net loss was 257 million yuan and 485 million yuan.

Personal opinion, for reference only

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