Reduce holdings to stop share prices from soaring? Behind the "hottest Semiconductor" of China Science and Technology Weibo: solid-state storage business

National Science WeChat (300672.SZ), which gained 20% and 18.85% in a row on May 10 and 11, opened low today. A sale announcement last night seemed to cool down the recent hottest company in semiconductors.

At around 10:00, SinoScience hit 90.00 yuan, down 11.30%. But then the share price began to pick up and closed at noon, the share price was at 99.81 yuan, down 1.64%.

Around May Day, Guoke Weiwei opened a rocket-like surge, and its share price doubled in 10 trading days. From the perspective of the recent popularity of Guoke Micro, in addition to hot money hype, the substantial growth of the company's solid-state memory chip business has brought fundamental changes, and the scarcity of its semiconductor subdivision track can not be ignored.

After the big rise, it ushered in the first reduction.

National Science Micro announced on the evening of May 11 that the core map investment of the actual controller intends to reduce its holdings by means of block trading and centralized bidding, not exceeding 5.3624 million shares and not more than 2.9739% of the total share capital of the company.

Company insiders told the Financial Associated Press that the core map investment is the company's employee shareholding platform, after the lifting of the ban on the listing of the company, the actual controller and management have not made a reduction, this is the "first reduction."

Tianyan inspection shows that the chairman of the company holds 31.90% of the shares of the core map investment to Ping, and a number of employees of the company are also core map investment shareholders.

The move could cool recent soaring share prices. It is rumored that the recent surge in SinoScience is related to the use of hard drives for mining in Chia coins, while the insider said he does not have the relevant information about the rumors.

Previously, it was rumored that a large number of read and write operations will be produced in the process of Chia coin mining, which consumes a lot of life of SSD (solid state disk), so a large amount of SSD is needed.

Guoke Micro has worked hard in the field of SSD for many years, and it is also a rare memory controller chip target company in the A-share semiconductor track. At the 2020 Global Flash Summit, National Science Micro was rated as "Top Ten Global Flash Controller Enterprises in 2020" and "Top Ten solid State disk Enterprises in 2020".

In May last year, the company signed a strategic cooperation memorandum and a long-term supply agreement with the external storage leader Changjiang Storage. Guoke Weiwei executives have said that "by importing Changjiang storage 3DNAND flash memory into Guoke micro solid state disk, we can provide users with more leading storage solutions."

According to people from National Science and Technology, the main components of the solid-state hard disk are controller chips and memory chips. Guoke Micro self-developed controller chips are made into hard disks for sale with memory chips stored in the Yangtze River.

Storage business

The results fully reflect the contribution of solid-state storage business to the company's growth and the importance of the business. In 2020, the company achieved revenue of 731 million yuan, an increase of 34.64% over the same period last year. Among them, the sales revenue of solid-state storage chips and products was 473 million yuan, an increase of 79.57% over the same period last year, accounting for 64.68% of the company's annual revenue.

The sales revenue of intelligent video surveillance series chip products last year was 124 million yuan, an increase of 49.84% over the same period last year, accounting for 17% of the company's revenue.

The third largest business is integrated circuit research and development, design and services, with revenue of 115 million yuan in 2020, an increase of 89.94 percent, accounting for 15.70 percent of the annual revenue.

By contrast, revenue from Guoke Micro's earliest smart set-top box SoC chip business fell 84.96% last year to 18.62 million yuan.

Benefiting from the strength of the solid-state storage business, Sinokewei continued its growth since last year in 2021. Q1 quarterly report in 2021 showed that the company achieved revenue of 412 million yuan, an increase of 732.14% over the same period last year. The company said it was mainly due to a substantial increase in revenue from the solid-state storage series chip and product business segment.

In the first quarter of this year, the company won the bid for the "Skynet Project" renovation and upgrading project of Changsha Public Security Bureau with a large order of 525 million yuan. A quarterly report confirmed that the order is currently under execution.

Calculated with the closing price of 101.47 yuan on May 11, the company's latest static price-earnings ratio is 258.23 times, and the latest rolling price-earnings ratio is 171.02 times, significantly higher than the industry's price-to-earnings ratio of more than 30 times. Last night's company announcement also warned that there are supply chain, growth and other risks.

However, judging from the market this morning, the impact of the reduction announcement and risk tips on funds is still limited, with a half-day turnover of 711 million yuan and a turnover rate of 4.34%. Head chip self-research domestic concept and harvest letter to create a big single of the national science micro, the follow-up trend of the stock price is still worthy of attention.