Markets· Equity

ASR Microelectronics Co., Ltd.’s IPO to debut on SSE STAR Market

minutes 2022/01/13 02:59:14

Jan 13, 2022 (China Knowledge) - ASR Microelectronics Co., Ltd. (688220) to start trading on the Shanghai Stock Exchange's STAR Market Jan 14, tomorrow. The firm has issued 41.83 mln shares priced at RMB 164.54 per share raising RMB 6.88 bln. During subscription the IPO was 3,087 times oversubscribed.

Haitong Securities acts as the lead underwriter and sponsor for the IPO.

ASR Microelectronics Co., Ltd. manufactures and distributes semiconductor products. The Company produces baseband communication chips, mobile intelligent terminal chips, low power consumption chips, high integration chips, global navigation and positioning chips, and other products. ASR Microelectronics also provides aemiconductor internet protocol authorization services.

In FY 2020, ASR Microelectronics Co., Ltd. garnered a total revenue of RMB 1.08 bln, up 172% YoY. In terms of net income, it achieved RMB -2327 mln, falling 299% YoY. In the first three quarters of 2021, the company reported revenue of RMB 1.43 bln, a YoY increase of 103%, and its net profits reached RMB -484 mln, up 77% YoY.

The company is in the electronics industry that is currently made of 252 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 5,582 bln. The electronics industry’s index is up 20.54% year-to-date, ranking it the 13th place among all 29 broad industry groupings.

Foxconn Industrial Internet Co.,Ltd. (601138) takes up the top spot in terms of sales in the industry, reporting RMB 431.79 bln of sales in 2020, with a net profit of RMB 17.43 bln, at 12 times PE. The second largest is HNA Technology Co.,Ltd. (600751), a total revenue of RMB 336.69 bln. BOE Technology Group Co.,Ltd. (000725) ranked third. It garnered a total revenue of RMB 135.55 bln last year, and a net profit of RMB 5.04 bln, with 9 times PE.

The average industry’s PE for the same or similar stocks on Hong Kong Exchange (HKEx) and the U.S. stock markets for electronics is 34 times and 47 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 0.57% and the U.S is up 31.37%.

Since January, a total of 520 companies have listed on either Shanghai or Shenzhen Stock Exchange, most are mainly in the machinery equipment, electronics and pharmaceutical and biological industries.

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