FIBOCOM(SZ:300638) Xin Lang Zheng Quan·2025-10-16 09:38Core Viewpoint - Guanghetong, a leading global wireless communication module provider, is set to launch its IPO in Hong Kong, with a planned issuance of 135 million shares, potentially increasing to 155 million shares with a price range of HKD 19.88 to HKD 21.50 per share, aiming to raise between HKD 26.9 billion and HKD 33.4 billion [1][2][3] Fundraising and Use of Proceeds - The net proceeds from the IPO will be allocated as follows: 55% for R&D, 15% for building manufacturing facilities in Shenzhen, 10% for repaying bank loans, and 10% for working capital and other general purposes [1] Market Conditions - The A to H market has seen a significant slowdown in the second half of 2025, with only four projects launched, totaling a maximum of HKD 138 billion, a decline of over 80% compared to the first half [2] - The absence of foreign institutional investors in Guanghetong's cornerstone investment lineup contrasts with the company's international revenue, which exceeded 50% in 2024 [5] Cornerstone Investors - The cornerstone investment consists of seven institutions, totaling HKD 12.6 billion, which accounts for 46.7% of the base issuance size [3][4] - The largest single investment comes from Jiangxi Xiangping Government Fund, contributing HKD 5.5 billion, representing 20.2% of the total [3][4] Financial Performance - Guanghetong reported a 9% decline in revenue to HKD 3.707 billion and a 34.7% drop in net profit to HKD 218 million in the first half of 2025 [6] - The company's cash flow from operating activities turned negative, dropping by 105.6% compared to the previous year [6] R&D Investment - R&D expenditure as a percentage of revenue has been declining, falling to 6.5% in the first half of 2025, raising concerns about the company's ability to keep pace with technological advancements [6] Pricing and Market Sentiment - The IPO pricing range reflects a discount of 34.6% to 39.5% compared to the A-share closing price, which is within the reasonable range based on similar past IPOs [9] - The opening of international placement channels by Futu Securities indicates concerns about institutional demand for the IPO [7] Governance Issues - The company's governance has been questioned due to past violations by the controlling shareholder regarding information disclosure, which may affect investor confidence [11]