The Value Effect Of Strategic Institutional Investors

In recent years,as Chinese technology companies have been unfairly suppressed,they have faced the dilemma of being stuck in some areas,and the related industry chain has grown slowly.Local industry chain integrator began to support the basic areas through horizontal and vertical investment and the integration of various forms of resources and markets in China,to achieve complementary advantages,and to seize supply chain channels to reduce the risk of "broken chain" and gradually win Take the competitive advantage based on the entire industry chain.This means that the core competitiveness of a single enterprise in a certain link must be combined with its vision in the entire industrial value chain to be new positioning.The focus of competition among enterprises has gradually shifted from the level of individual enterprises to the industrial chain.In this context,strategic institutional investors can obtain synergies in the industrial chain through stable non-controlling investments,and ultimately promote the enhancement of the value of the companies on both sides of the investment.The strategic institutional investor selected in this article is Hubble Technology Investment Co.,Ltd.,whose parent company is a leader in the domestic integrated circuit industry.Through the analysis of Hubble's current investment model,one of its many investment projects,3Peak,which is representative of the IPO investment target of the science and technology innovation board,is selected as the case company of this article.This article conducts analysis and research from three perspectives: First,fully explain the decision-making motivations of both investors.This article finds that the two companies are consistent in their strategic goals.3Peak is financing to realize its products to enter the 5G market;Hubble is investing in assisting the 5G industry chain layout of the parent company.Secondly,we sort out the action process of both investors in detail.This article finds that the two companies cooperate with each other in strategic actions.3Peak conducts private placement to strategic institutional investors to further increase the scale of related party purchase and sale transactions and use industrial advantages to reduce transaction costs.Hubble does not limit financial indicators,and chooses a private placement method to signal to the market that the company's value is underestimated,and attract potential investors to help 3Peak's follow-up financing.Finally,this article analyzes the value effect of institutional investors in the case from the three perspectives of financial value effect,market competitive position,and corporate innovation capability.It is found that the financing ability and financial performance of 3Peal have been improved,and performed well in the capital market;short-term R&D investment and innovation results have achieved major breakthroughs,laying a good foundation for continuous innovation in the future technology field;obvious competitive advantages in the market,ranking among the best in the global 5G chip field.By analyzing the path of institutional investors' realization of value creation,this article summarizes the following conclusions: By introducing strategic institutional investors,companies not only meet their financing needs,but also help to amplify their competitive advantages in the industry chain,and are able to compete in the market.Form a certain degree of influence or control,and increase the value of the enterprise accordingly.