Shulou(Shulou.com)06/02 Report--

Author: Bao Yonggang 2020-07-20 14:35 introduction: by the close of trading in the morning, the Cambrian stock price was 215.22 yuan per share, up 234.24%, with a market capitalization of 86.11 billion yuan.

Science and Technology Innovation Board Semiconductor's first SMIC shares soared 201% on its first day of listing last Thursday, according to Lei Feng. Com. Today, Science and Technology Innovation Board ushered in the first Cambrian technology of AI chip. The Cambrian initial public offering price is 64.39 yuan per share, with a total share capital of 40.1 million shares, of which 31.1048 million shares are listed from today. The total amount of capital raised this time is 2.582 billion yuan, which is mainly used to provide funds for three chip projects and supplement working capital.

Cambrian Technology's IPO pricing determines its price-to-earnings ratio of 58.03. according to exchange documents, the average price-to-earnings ratio of the five Chinese interbank listed companies is 34.54.

As soon as trading opened this morning, the Cambrian share price soared to 295 yuan per share, with a market capitalization of more than 100 billion at one time. As of the morning close, the Cambrian share price was 215.22 yuan per share, up 234.24%, with a market capitalization of 86.11 billion yuan.

According to information previously disclosed by the Cambrian, Chen Tianshi is currently the largest shareholder in the Cambrian, with a shareholding of 33.19 per cent.

Cambrian shareholding accounts for the top ten shareholders

Science and Technology Innovation Board's first share of AI chip has been listed for 116 days.

Su Dong, vice president of Huadeng International, said in an open class at Lei Feng Network Core Infrastructure that Science and Technology Innovation Board, which adopts the registration system, can shorten the reporting period of the proposed listed company compared with the main board listing. get a reply and confirm whether the company can be listed within six months, which ensures that some hard-tech companies can invest in research and development while maintaining stable profits during the application for listing.

This is very obvious in SMIC and Cambrian in the listing of Science and Technology Innovation Board, especially SMIC.

The SSE accepted SMIC's listing application on June 1, 2020, took effect on June 29, just 28 days later, and went public on July 16, taking only 45 days, according to the SSE's website.

It took more time for the Cambrian Kechuang board to go public. On Feb. 28, the website of the Beijing Securities Regulatory Commission revealed that Citic Securities and China Science and Technology Co., Ltd. signed a tutoring agreement on December 5, 2019, the latter plans to list on Science and Technology Innovation Board. On March 26, the Shanghai Stock Exchange accepted the application for listing in the Cambrian period. The registration became effective on June 23 and listed on July 20. It took 116 days from the application was accepted to the official listing.

The Cambrian took longer, in part because it was listed for the first time, while SMIC already had experience listing in the US and Hong Kong. On the other hand, the process has been lengthened by two rounds of inquiries on the Cambrian on the Shanghai Stock Exchange.

The Cambrian prospectus is the first time for the outside world to have a comprehensive understanding of its revenue and R & D data, which has raised concerns about Cambrian valuations and future revenue. The biggest concern is valuation, with Citic Securities valuing the Cambrian at Rmb192-34.2 billion, according to a report from the Cambrian in response to the second round of inquiries from the Shanghai Stock Exchange. On the first day of listing, the market capitalization of the Cambrian was 86.11 billion yuan, 2.5 times the previous highest valuation.

Next, the key factor affecting Cambrian future profitability is its cloud chip.

The key to Future growth in the Cambrian-- Cloud Market

Founded in 2016, the Cambrian attracted much attention because its smart processor IP was applied to Huawei's flagship mobile phones and shipped on a large scale. Huawei brought 7.7127 million yuan in revenue to the Cambrian in 2017, accounting for 98.34 percent of the company's operating revenue that year, according to the prospectus. In 2018, it contributed 110 million yuan in revenue to the Cambrian, accounting for 97.63% of the company's revenue that year.

However, Huawei's switch to a self-developed smartphone NPU in 2019 directly reduced the Cambrian revenue from Huawei to 63.65 million yuan, accounting for only 14.34% of the company's revenue that year, ranking only fourth among the company's top five customers that year.

Fortunately, the Cambrian clearly defined the layout of the end-cloud integration from the beginning, with the launch of cloud-end and edge-end AI chips and acceleration cards in 2018 and 2019 respectively, so that the Cambrian can continue to develop, which is also the key to the future development of the Cambrian.

Because, in the terminal market, there is a clear demand and a large number of shipments of mobile phone SoC market, including Huawei, Qualcomm, MediaTek all have self-developed NPU, other companies do not have high demand for NPU. Therefore, the Cambrian in the cloud side of the strategy did not give up the end market, but the key to future revenue growth obviously lies in the cloud market.

But it is also very difficult to compete with giants like Intel and Nvidia to succeed in the cloud market. Lei Feng net (official account: Lei Feng net) has been introduced in detail in previous articles, in addition to capital, technology, talent, product performance, market position and sales network, product pricing strategy, ecology are very important.

Judging from the actual sales, the revenue of Cambrian cloud chips mainly depends on several major customers. According to the information disclosed by the Cambrian, the Cambrian mainly sold cloud smart chips and acceleration cards to dawning, and the total amount of sales to other customers was 15.0381 million yuan.

On-hand orders for Cambrian cloud smart chips and acceleration cards

Cambrian revealed that its cloud smart chip and acceleration card business is negotiating with customers and the relatively high certainty of the purchase contract or order is about 50 million yuan, and the products are expected to be sold. The next generation cloud smart chip Siyuan 290 is under internal testing and is expected to send samples to key customers such as major manufacturers in the fourth quarter of 2020.

The total order amount of edge-end AI chip Siyuan 220 and acceleration card Cambrian is 6.4395 million yuan. And Siyuan 220 and its accelerated card business are in business negotiations and relatively high-certainty procurement contracts or orders (customers are mainly Internet leading enterprises), the total amount is expected to be about 10 million yuan.

In addition, Cambrian also said that its intelligent computing cluster business pioneered the "AI+IDC" business model.

Cambrian believes that compared with Nvidia, its advantage is that its AI chip is optimized specifically for AI and various algorithms, and can respond to the needs of domestic companies more quickly. Compared with Huawei, its intelligent computing cluster system can adapt to different brands of CPU, has stronger compatibility, and its independent and neutral positioning can form an open ecology.

What's the future like?

According to the information disclosed by the Cambrian, from January to March 2020, the Cambrian operating income was 11.5526 million yuan, a decrease of 18.91% compared with the same period last year. Specifically, the licensing business revenue of intelligent terminal processor IP in the first quarter was 3.1618 million yuan, down 76.56% from the same period last year; cloud smart chip and accelerator card revenue was 6.6197 million yuan, an increase of 775.51% over the same period last year, with a year-on-year increase. At the same time, cloud smart chip and accelerator card products accounted for an increase in sales revenue.

Unit: ten thousand yuan

Unit: ten thousand yuan

In other words, although the revenue scale of cloud AI chips and acceleration cards in a single quarter has not yet reached the level of 10 million yuan, it has increased nearly 8 times compared with last year.

The Cambrian also expects operating income of about 82 million yuan to 86 million yuan in the first half of 2020, a year-on-year decline of about 12.24% to 16.32%. However, the main business for the whole year is expected to grow by 35.15% to 102.73% year-on-year, with revenue of about 600 million to 900 million yuan.

The Cambrian is still confident about its future growth, but there have been concerns about the Cambrian future without Huawei, a big customer, and the landing of its cloud chips and accelerators is not very optimistic.

The prospectus also shows that in Cambrian 2017, 2018 and 2019, the operating income was 7.8433 million yuan, 117.0252 million yuan and 443.9385 million yuan respectively, and the growth rates in 2018 and 2019 were 1392.05% and 279.35% respectively over the previous year. Net profit was-380.7004 million yuan and-4104 respectively. 650000 yuan and-1.1791253 billion yuan.

In other words, revenue more than tripled during the Cambrian period, but the net loss rose sharply to about 1.18 billion yuan in 2019, which the Cambrian explained was mainly due to the large capital expenditure required for the research and development of smart chips.

As of the date of signing of the prospectus, the Cambrian has not yet made a profit and there are accumulated unmade-up losses. What do you think of the future of the first share of Science and Technology Innovation Board's AI chip?

Related articles:

The Cambrian was in its prime year: the valuation exceeded 30 billion yuan, and the revenue from cloud chips increased nearly eightfold.

How did the Cambrian compete with Nvidia and Huawei Hayes?

Revenue changes in 2019! IPO prospectus unveils Cambrian mystery

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