Events:
1633.HK announces the acquisition of all shares in Koryo by 400 million people
Content:
The company announced the acquisition plan, and the acquired company is indirectly engaged in electronic technology research and development, technology consulting, technology transfer and non-store wholesale and retail in China through wholly foreign-owned enterprises. The main purposes of the acquisition are:
1) as a layout of e-commerce, open and integrate online and offline communication and sales resources
2) to provide a platform for the Group to develop new products and new brand business.
Brief introduction of the wholly-owned company of the acquiree:
Baiku: established in China on October 27, 2009, mainly engaged in electronic technology research and development, technology consulting, technology transfer and non-store wholesale and retail in China.
Bailey: established in China on March 31, 2012, Co., Ltd. is mainly engaged in computer network technology, telecommunications technology research and development, computing software development, wholesale and retail trading, commodity import and export and technology import and export.
Comments:
The company announced an acquisition agreement of 400 million yuan of personal currency. According to the acquiree's operating profit before tax in 2011 and 2012, the acquisition price is about 17 and 5 times the price-to-earnings ratio. If it is after tax, it is estimated to be purchased at a price-to-earnings ratio of less than 10 percent in 2012. The price is relatively reasonable. Due to the high standard of mask products and the fact that most of the customers are women, the number of women shopping online has increased significantly this year. Therefore, online channel (e-commerce) is an important and highly growing sales channel for the industry in the future. At present, we see that most of the domestic beauty and skin care products make use of third-party e-commerce services, and Midea's acquisition has a do-it-yourself attitude. With the increasingly fierce competition in the e-commerce industry, it is necessary to have a large cost to develop their own e-commerce platform, so we expect that the direct profit of direct acquisition will be lower than that of the company if it uses other strong third-party e-commerce platforms. it may be a drag on the company's performance this year. However, if the company hopes to use this platform to build an exclusive beauty and skin care one-stop shopping network, and at present, in addition to facial mask products, there are other skin care products that are also suitable for online sales, this acquisition is still interesting for the company in the long run.