CATL surges 44% after listing! Highest valuation exceeds 200 billion (Top 10 highlights)

Another "unicorn" is here! Following the footsteps of WuXi AppTec and Foxconn, CATL today became the third "unicorn" to be listed on the A-share market. It is also the first unicorn new economy enterprise to be listed on the Shenzhen Stock Exchange and even the ChiNext, which is of great significance.

With the largest IPO on the ChiNext, the world's largest power battery shipment volume, and support from a star organization... CATL, with its multiple halos, surged 44% on its first day of listing, without any suspense. However, its performance in the following period has made the market more excited.

On one hand, there is the amazing performance of WuXi AppTec with 16 consecutive daily limit increases, and on the other hand, it is easy to be compared with Foxconn, which went public earlier. We will wait and see whether CATL's performance after listing can surpass WuXi AppTec's 16 consecutive daily limit increases. Today, Fund Jun and everyone will take a look at the ten highlights brought by the listing of CATL, the first unicorn in Shenzhen Stock Exchange.

1. What did the chairman say at the listing bell ringing ceremony?

At the listing site of the Shenzhen Stock Exchange today, Zeng Yuqun, Chairman of CATL, said in his speech that since its establishment, CATL has been committed to becoming a "world-class innovative technology company", providing safe, reliable, green and efficient "Chinese chips" for global new energy applications, and working tirelessly to make the sky bluer, the water clearer and life better.

Now, the company has core technology advantages and world-class R&D capabilities in key areas of the industry chain such as battery materials, battery systems, and battery recycling, and has formed a complete production service system. Power batteries from CATL have provided powerful power for 300,000 new energy vehicles. Soon, more new energy vehicles around the world will have a "Chinese chip" from CATL!

Zeng Yuqun said that going public is a new opportunity and a new starting point for rapid development. We still have a lot to do on the journey to becoming a world-class innovative technology company. CATL people will continue to strive, firmly grasp this precious opportunity, do a good job in fundraising and investment projects, enhance core competitiveness, continue to rapidly improve the level of business management, achieve customers with excellent products and services, and make greater contributions to the new energy cause of all mankind!

2. Some securities firms give a valuation of up to 200 billion

Regarding CATL's market performance after its listing, Zhongyuan Securities, Shanghai Securities, Huachuang Securities and others only gave it a valuation of more than 20 times in 2018, and the expected stock price was more than 30 yuan.

CICC believes that the company has a more significant industry competitiveness advantage than its peers in the power battery industry, and its overall valuation can achieve a premium of approximately 0-30%.

China Fortune Securities gave CATL a 50 times valuation in 2018, with a reasonable share price of 103 yuan and a reasonable market value of 201.5 billion yuan.

3. Can the number of daily limit increases exceed that of WuXi AppTec?

A question that attracts much attention when new stocks are listed is: How many daily price limits will there be after listing?

Previously, the first "unicorn" WuXi AppTec had 16 consecutive daily limit increases after its listing, rising from 21.6 yuan at the time of issuance to 129.91 yuan before it opened. As of now, the highest stock price has reached 138.87 yuan.

With the demonstration effect of WuXi AppTec, CATL's performance is worth looking forward to. If it can achieve 16 consecutive gains like WuXi AppTec, CATL's stock price will be as high as 150 yuan, and its market value will far exceed the 200 billion yuan given by Caitong Securities, reaching 300 billion yuan.

On June 8, another "unicorn" Foxconn also went public before CATL, and also surged 44% on the first day. Today, it has no suspense and has hit the daily limit again. The competition between CATL and Foxconn for consecutive daily limits is also worth paying attention to.

4. It may surpass Wens Foodstuffs Group to become the new leader in the GEM

CATL's initial offering price was 25.14 yuan, with an initial market value of 54.6 billion yuan. Based on the latest closing price of 36.2 yuan on the first day of listing, the current market value is 78.663 billion yuan.

The current market value of Wen's shares, the "big brother" of the ChiNext, is about 123 billion yuan. If the share price of CATL can exceed 57 yuan, that is, it can achieve six consecutive gains, it will surpass Wen's shares and become the "new big brother" of the ChiNext market value. For CATL, this goal does not seem to be very difficult.

As the world's leading power battery company, CATL took over from Wen's Shares as the "number one" in the GEM, which seems to better reflect the characteristics of the GEM in gathering emerging industries.

5. Chairman Zeng Yuqun is expected to become the new richest man in Fujian

The actual controllers of CATL are Zeng Yuqun and his joint actor Li Ping, who together hold 31.46% of the shares. Among them, founder Zeng Yuqun indirectly holds 26.31% of CATL's shares by controlling 100% of Ruiting Investment, making him the company's largest shareholder.

According to Forbes' 2018 Fujian Rich List, the current richest person in Fujian is the Xu Shihui family, which runs Dali Foods, with a fortune of approximately 56 billion yuan.

Based on the latest closing price of CATL, Zeng Yuqun's current personal wealth has reached 20.68 billion yuan. As long as CATL's stock price can reach above 98 yuan, that is, it will rise for 12 consecutive days, Zeng Yuqun's personal wealth will exceed 56 billion yuan, replacing Xu Shihui's family as the new richest man in Fujian.

6. In 2017, new shareholders need 15 daily limit ups to get their money back.

As a new economy unicorn company, the shareholder lineup behind CATL is quite impressive.

In 2017, CATL's last capital increase before its IPO also brought in a number of star institutional shareholders, including Changzhou Qide, which is jointly held by SAIC Group and Heping Real Estate, Anpeng Xingyuan, which was invested by China Merchants Fund, and Demao Hairun, which is a stakeholder of Changan Automobile.

In addition, Xinjiang Dongpeng, funded by TCL, and CICC Qiyuan, funded by CCB Trust, also became new shareholders of CATL through equity transfer in 2017.

The share price of some institutional and natural person shareholders who newly invested in the capital increase and acquired equity transfer in 2017 was as high as 130.4372 yuan. In other words, these investments can only make a profit if CATL achieves at least 15 daily limit increases.

7. Employee stock ownership has gained 16 times

CATL's employee stock ownership plan started in 2015. The company's key personnel used self-raised funds to establish four limited companies, including Qianxue Investment, Beidao Investment, Hequ Investment, and Jifa Investment, and six partnerships, including Boguan Investment, Boguan Zhenghe, Chunhe Ruifu, Chunhe Ruize, Lingding Vision, and Fengxing Yitai, and subscribed for 70.59 million new shares of the company at a capital increase price of 2.125 yuan per share.

In other words, based on the current price alone, the CATL shares held by employees have increased 17 times. As CATL's share price rises, the shares will continue to appreciate.

8. Every time you hit one of the 10 daily limit ups, you can earn 30,000 yuan by signing a contract

As for the returns from new IPOs, which is of most concern to stockholders, CATL has also filled the market with imagination. Previously, WuXi AppTec achieved the best performance of new IPOs this year with 16 consecutive gains, and the highest return for each winning stock was more than 100,000 yuan.

Compared with WuXi AppTec's IPO price of 21.6 yuan, CATL's IPO price is 25.14 yuan. With the advantage of a higher IPO price, CATL's earnings per share will be more substantial every time it hits a daily limit. However, one lot of CATL shares is 500 shares, so the earnings per lot will be smaller than that of WuXi AppTec.

According to estimates, if WuXi AppTec achieves 10 daily limit increases, the profit per contract will be approximately RMB 30,000; if it achieves 16 daily limit increases like WuXi AppTec, the maximum profit per contract will be approximately RMB 63,000.

9. These related stocks will benefit

After CATL goes public, related companies in its supply chain are expected to benefit directly.

Among them, upstream resources include Huayou Cobalt, Luoyang Molybdenum, Tianqi Lithium, and Ganfeng Lithium; midstream raw materials include Shanshan Holdings, GEM, and Innovation Holdings; new energy thermal management includes Yinlun Holdings; and the lithium battery equipment supplier is Pioneer Intelligent.

Other related stocks include: Xiamen Tungsten Co., Ltd., Putailai, Tianci Materials, Xinzhoubang, Changyuan Group, Xingyuan Materials, and Haiyuan Machinery.

10. It is expected to consolidate my country's and even the world's leading position in power batteries

CATL will raise 5.352 billion yuan from its IPO, which will be mainly invested in the Huxi lithium-ion power battery production base project and CATL's power and energy storage battery research and development projects.

Huachuang Securities' latest research report believes that CATL's Huxi lithium-ion power battery production base project will invest a total of 9.86 billion yuan, and 24 production lines will be built in 36 months, with a total annual production capacity of 24GWh. After completion, the company's battery production capacity in 2020 will reach more than 50GWh, with a leading scale advantage. The company has invested 2 billion yuan in power and energy storage battery research and development projects. While developing new products, it will also deploy next-generation battery technology to build a continuous leading technological advantage.

The latest view of Caitong Securities shows that CATL is expected to stand out and become the leader of power batteries in my country and even the world. In terms of scale, CATL's shipments have ranked among the top three in the world for three consecutive years, with a domestic market share of about 30%. In terms of technology, CATL has seized the initiative in ternary lithium batteries, leading its peers in energy density, and investing billions of dollars in research and development each year to maintain its technological leadership. The company is deeply bound to mainstream automakers such as SAIC, Dongfeng, and Changan, and has taken the lead in breaking through the blockade of Japan and South Korea, entering the supporting systems of world-class automakers such as Volkswagen, Daimler, and BMW. It is expected to be on par with established battery manufacturers such as Panasonic, LG Chem, and Samsung SDI, and become a global battery leader.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.