Summary
Jiangsu Cathay Pacific announced the issuance of convertible bonds with a size of about 4.557 billion yuan, with shareholder placement and online purchase. TB is scheduled for Wednesday, July 7. We think its listing may be located around 113yuan, with a success rate of about 0.019%.
Key purchase information
1, the size of the issue is about 4.557 billion yuan, setting up shareholder placement and online purchase, T day is scheduled for Wednesday, July 7; 2, the original shareholders according to the quota of 2.9148 yuan per share, code 082091, Cathay Pacific debt; 3, online purchase without deposit, the upper limit is 1 million yuan, code 072091, Cathay Pacific issued bonds.
Formal dress analysis
The company's main focus is on the new energy lithium-ion battery electrolyte business, and the holding subsidiary Ruitai New Energy plans to be spun off to be listed on the gem. The company has chemical new energy, clothing import and export trade supply chain two major business sectors, of which the holding subsidiary Ruitai New Energy is lithium battery electrolyte, silane coupling agent and other new materials research and development platform, nearly three years lithium battery electrolyte shipments are ranked in the top three (divine materials, new Zebang), downstream customers cover LGC,CATL, etc., currently has a capacity of 70,000 tons / year, Poland Huarong 40,000 tons / annual production capacity continues to promote. Under the background of continuous growth in sales of new energy vehicles and compact production in the middle reaches, the volume and price of electrolyte rings continue to be high. According to WIND data, the current price of electrolyte (lithium iron phosphate) reaches 75000 yuan / ton, an increase of 4.9% over the previous month, except for the electrolyte business. Ruitai New Energy also produces silane coupling agent products (currently entering the supply chain of chemical giants such as GE, Dow Chemical, PPG and other chemical giants), supercapacitor electrolytes and electrolytes, specialty fluorine chemicals, etc.
In addition, the company also operates the import and export trade of textiles and clothing. The company said that after the listing of Ruitai New Energy, the company will focus on the textile and clothing import and export supply chain business (the company's trade sector accounts for 93.78% of the company's revenue in 2020, which is the company's absolute source of income). This fund-raising is also mainly used for the construction of textile industry bases at home and abroad, extending to the upstream of raw materials and speeding up the integration of the global supply chain. Revenue from the sectors affected by the epidemic fell 22% in 2020 compared with the same period last year. With the gradual improvement of the global epidemic, we believe that the trade sector still has the momentum to repair.
The stock is undervalued, the elasticity is OK, and the lower limit rises after the trend is improved. The current TTM of positive stocks is 14.24x LF 1.55x, which is relatively low, with a 180-day volatility of 51% and a total market capitalization of 14.2 billion yuan. Positive stocks have an overall upward trend over the past two years, but due to a large proportion of traditional business, they are still morphologically suppressed by long-term hubs. Share prices rebounded rapidly in May and the market repriced their fundamentals. Considering the high magnanimity of the electrolyte scene, the good competition pattern (CR3 market share is more than 60%), and the limited market attention of the company, although there is a possibility of high shock in the short term, the overall lower limit should be higher than in the past.
Terms and pricing
The scale of convertible bonds is relatively large, and the protection of the debt bottom is OK. The current convertible bond size is about 4.557 billion yuan, the initial conversion share price is 9.02 yuan, and the latest parity is about 102 yuan. The AA+, rating of convertible bonds has a term of 6 years, with a coupon rate of 0.20%, 0.40%, 0.60%, 1.50%, 1.80%, 2.00%, 108 yuan, 2.01%, and 89.4 yuan, respectively. The protection of the debt bottom is acceptable, and other provisions remain in the mainstream form.
At the pricing level, there is room for improvement in the company's textile and service trade business, the new energy materials sector has high capital attention, high prosperity, low stock valuation, market attention repair helps to enhance upward elasticity, it is recommended to pay attention to bargain. The terms of convertible bonds shall remain conventional, and the protection of debt bottoms is acceptable. We think its listing position may be around 113yuan, the proportion of shareholder placement is 65%, and the success rate is about 0.019% if it applies for 8.2 trillion yuan online.