On June 19, the Securities Regulatory Commission issued the “Eight Measures on Deepening the Reform of the Science and Technology Innovation Board and the Development of New Quality Productivity” (Eight Measures on the Science and Technology Innovation Board), which supports the listing of high-quality unprofitable technology-based enterprises, optimizes issuance and pricing mechanisms, promotes pilot refinancing reserve issuance, supports mergers and acquisitions, and improves sector transaction mechanisms, etc., to better serve the development and growth of innovative technology enterprises and new quality productivity.
Affected by this favorable influence, a number of stocks on the Science and Technology Innovation Board rose significantly the next day, adding another spark to the “Special Assessment” market, which continues to rise.
The “Cote Assessment” market is popular, and three factors work together
In fact, “Cote Assessment” has recently become a hot topic of discussion in the market, and its attention continues to rise, and related sectors have also shown independent market trends — against the backdrop of poor overall market performance, the Science and Technology Innovation 50 Index has risen in reverse, and the semiconductor, electronics and other sectors related to “Cote Assessment” have also continued to improve. All kinds of data indicate that capital is actively flocking to the “special evaluation” concept.
What is a “special evaluation”?
“Special evaluation” is regarded as an extension and an important component of “China Special Assessment”. It represents “scientific and technological characteristic valuation” and aims to reshape the valuation system of high-tech enterprises in China. “Special Assessment” focuses on the transformation and upgrading of “new quality productivity”, covering various fields such as China's leading “superior manufacturing”, “self-made in China” that is autonomous and controllable, and “advanced intelligent manufacturing” with cutting-edge technology. According to the survey results of the Private Equity Ranking Network, more than two-thirds of private equity institutions are optimistic about the long-term market of “Cote Assessment”, believing that it will lead the consolidation of China's scientific and technological power, and is expected to usher in a wave of valuation reshaping under the direction of a new quality of productivity transformation.
The market generally believes that “special evaluation”Market priceThe rise was co-catalyzed by at least three factors.
First, the third phase of the National Capital Fund's supporting investment provided strong support for the “Special Assessment.” Compared with the previous two instalments, the registered capital of the third phase of the Big Fund increased dramatically, and the investment scale reached 344 billion yuan, which is about the sum of the previous two installments. According to historical leverage estimates, the third phase is expected to leverage more than trillion dollars. This huge volume has undoubtedly injected strong impetus into the “Colt Assessment.”
Second, the position of “new quality productivity” in the national strategy continues to rise, which has also enabled “special assessments” to ferment. New quality productivity involves novel fields and high technical content. It is productivity where scientific and technological innovation plays a leading role. It breaks away from traditional growth paths, meets the requirements of high-quality development, and is more integrated and reflects new connotations in the digital age. The development of new quality productivity is inseparable from strong capital market support, and “special evaluation” is the capital market's important support for new quality productivity. Everbright Securities also pointed out that establishing a “special evaluation” system is an inevitable requirement for developing “new quality productivity.”
Finally, the historically low valuations in the technology sector and the improvement in profit bottom-up have also provided favorable conditions for the rise of “Cote Valuations.” When the valuation of the technology sector is relatively low, the market's capital is more motivated to allocate capital to the high-tech industry.
Due to the combined effects of multiple factors, the “cot evaluation” concept continues to be sought after by funding. As a gathering force for China's scientific and technological strength, “Cote Assessment” is expected to usher in a wave of valuation reshaping under the direction of the transformation of new quality productivity, bringing new investment opportunities to investors.
The degree of compatibility between Tailingwei and “Kurt Assessment”
In the “Cote Assessment” investment boom, how can we accurately grasp the pulse of the market?
The Guolian Securities Research Institute has shown us the direction: on the one hand, the targets of “special valuation” need to have high “scientific content”, that is, technology-intensive and capital-intensive, and are mainly distributed in the fields of domestic upgrading and autonomous control; on the other hand, the current valuations in these fields are underestimated, and there is a need for industry valuation repair.
TailingMicro conforms to the above two characteristics and shows a high degree of compatibility with the “Special Assessment” concept.
TailingMicro occupies an important position in the global wireless IoT chip field. The company focuses on R&D and breakthroughs in IoT wireless connectivity chips. It not only leads the domestic market, but also competes on the same stage with major international manufacturers in the international market, demonstrating the hard power of Chinese technology companies. Its global market share of low-power Bluetooth chips has reached 12%, ranking third in the world and number one in the country; multi-mode chip shipments are the top five in the world and number one in the country; Zigbee/Thread chip shipments are in the top ten in the world and number one in the country.
With its outstanding contributions and position in the Bluetooth industry, Tailingwei was selected as a member company of the International Bluetooth Technology Alliance (SIG) board of directors in 2019 and re-elected in 2023 to participate in the formulation and maintenance of Bluetooth technology standards, and to work with internationally renowned technology companies Intel, Google, Apple, Microsoft, Ericsson, Nokia, Motorola, and Toshiba. The above is sufficient proof of its leadership position and ability to innovate in this field.
Tailingwei is outstanding in terms of technological innovation capabilities. In 2023, Tailingwei's R&D investment was 172.7522 million yuan, an increase of 346.893 million yuan over the same period last year, an increase of 25.13%. The company continues to launch low-power wireless IoT system-level chips with independent intellectual property rights and world-class performance levels to meet the market's demand for highly integrated, multi-mode, and low-power IoT connectivity chips. It has reached the second highest number of Bluetooth low energy terminal product certifications in the world, after the international leader Nordic. In addition, TailingMicro has also made significant progress in the field of multi-mode chips. The multi-mode low-power IoT wireless connection system-level chip it has developed supports various protocol standards, providing a more flexible and efficient solution for global IoT applications.
Tailingwei's shareholder structure also reflects the characteristics of its high “technical content.” The National Integrated Circuit Industry Investment Fund Co., Ltd. is the largest shareholder, and many institutional investors also hold positions in it. The holding of large funds and the recognition of institutional investors highlights Tailingwei's important position in technological innovation and industrial upgrading, and is undoubtedly an affirmation of Tailingmicro's strength.
From a valuation perspective, Tailingwei's semiconductor industry is currently undervalued, but with the improvement in industry sentiment, there is great potential for valuation repair. According to Guotai Junan's report, the bottom of the semiconductor cycle has arrived, and inventory has returned to a reasonable level, while Zou Chen, an analyst at Zhongyuan Securities, also said that global semiconductor monthly sales continue to grow year on year, consumer demand is gradually recovering, and demand is strong in the field of generative AI, which indicates the beginning of a new upward cycle in the semiconductor industry. Furthermore, the price increases or bargaining actions of many major semiconductor manufacturers in May-June, as well as the tight production capacity of Huahong Foundry and the increase in IDM utilization rates, all reflect a gradual recovery in downstream demand.
In this industry context, Tailingwei's performance also showed a steady upward trend. According to the 2023 annual report issued by the company, Tailingwei's revenue and net profit both achieved year-on-year growth. In 2023, revenue reached 63.6919 million yuan, an increase of 4.40% year-on-year.
Generally speaking, as a member of the Science and Technology Innovation Board, Tailingwei not only has a high “scientific content”, but is also in line with the connotation and extension of the “Eight Rules of Science and Technology Innovation”. With the in-depth implementation of the “Eight Rules of Science and Innovation,” Tailingwei is expected to usher in a wider development space.
According to the Choice financial data terminal, from June 7 to June 21, Tailing's micro stock price increased by 23.76%.