Mobile Payment Chipmaker Nationz to IPO on ChiNext
Shanghai Securities News, 3/24/10
Chinese security and telecommunications chip manufacturer Nationz Technologies will list on Shenzhen's ChiNext growth enterprise board on March 26. The company plans to issue 27.2 mln circulating shares to bring the company's total share capital to 108.8 mln shares. Nationz plans to invest RMB 153 mln, or nearly half of the total value of its IPO, into the development and industrialization of secure mobile payment chips and solutions.
In 2009, Nationz earned RMB 373 mln from its security chip business, accounting for 80.02% of its total business. The company says that its USB key security chips command a 70% market share. Nationz's RFID-SIM mobile payment solution, which is a product of the company's own intellectual property and innovation, requires users only to switch SIM cards, not mobile phones, in order to use mobile offline payment functionality. In addition, the company says it has signed a framework agreement for RFID-SIM card cooperation with China Mobile (NYSE: CHL; 0941.HK).
Over the past three years, the company reported an overall profit margin of 28.9%, 38.68% and 43.95% each year. In 2008, the company's net profit grew 77.49% YoY, and in 2009 by another 384.83% to a net profit of RMB 116.9 mln. If Nationz's IPO is successful, ZTE (0763.HK; 000063.SZ), its second largest shareholder with a 20% stake in the company, will receive a 60x return on its investment in the company.
Keywords: Nationz China Mobile IPO profit wireless 000063.SZ 0763.HK ZTE mobile payment market share CHL chipmaker RFID SIM card 0941.HK ChiNext
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