"how to save you, my share price"? Perhaps it is the problem that makes Skyworth Digital (00751) "anxious" recently.
Due to poor performance, Skyworth shares have been in the doldrums recently, hitting a three-year low. Is it true that the first brand of Chinese color TV, which was once amazed by the wind and clouds, has not fallen down? This may be a question in the minds of many investors.
Source: Futu Securities
As the saying goes, poverty means thinking about change. since the business of television is becoming more and more difficult, let's have a "vigorous" transformation.
Zhitong Financial APP noted that Skyworth announced on November 27 that the company would enter into preliminary negotiations with Huang Hongsheng on a potential acquisition for the company to acquire the interests of Kaiwo New Energy Automobile Group Co., Ltd. and its subsidiaries (target group) held by Huang Hongsheng or its holding company. This negotiation may involve the terms of a potential acquisition, including transaction costs, acquisition structure and other prerequisites.
If the company and Huang Hongsheng reach an agreement and both parties decide to proceed with the potential acquisition, the consensus is likely to be recorded in the formal agreement. On the date of the announcement (November 27), the company has not yet entered into a formal agreement with Huang Hongsheng on the potential acquisition.
Huang Hongsheng and his holding company hold the majority interest in the target group. On the date of the announcement, Huang Hongsheng was the controlling shareholder of the company, indirectly holding about 38.89% of the total issued share capital of the company, and his spouse Lin Weiping was the executive director of the company. Therefore, Huang Hongsheng is a company-related person. If the potential acquisition is made, it constitutes a related party transaction under Chapter 14A of the listing rules and a transaction to be announced under Chapter 14 of the listing rules.
Such good news, if placed in the A-share market, investors will be "ecstatic" to meet the arrival of the trading limit. However, the ideal is very plump and realistic. On November 28, Skyworth was greeted by a big Yin line that fell by more than 9%. Why did this happen? is the quality of Skyworth's proposed equity acquisition too poor?
Kaiwo: a giant in the field of new energy vehicles
Zhitong Financial APP learned that Kaiwo New Energy Automobile Group is the parent company of Nanjing Jinlong bus Manufacturing Co., Ltd. (referred to as Nanjing Jinlong).
The group is mainly engaged in the production and sale of new energy vehicles, including buses, logistics vehicles and passenger vehicles The Group is mainly engaged in the manufacture and sale of consumer electronic products, upstream accessories and the holding and development of properties.
Nanjing Jinlong, which is mainly engaged in the manufacture of new energy buses under Kaiwo, was established in 2000. In 2011, Nanjing Jinlong carried out a major restructuring, and the company was chaired by Mr. Huang Hongsheng, founder and controlling shareholder of Skyworth Group. There are now three independent divisions, namely, the VIP Division and the Power Battery Division of the Light vehicle Division.
The technical transformation project of Nanjing Jinlong bus relocation was officially launched in 2012, with an investment of 2.76 billion yuan in the first phase of the project. The Nanjing Airport High-tech Industrial Park covers an area of 1 million square meters and a construction area of 500000 square meters. After the project reaches production, it will produce 20, 000 new energy buses and 200000 light passengers per year.
In terms of performance, Nanjing Jinlong bus production base moved to Lishui Airport Development Zone in 2014, achieving sales income of 1.6 billion yuan at the new base, quadrupling that of 2013; in 2015, Nanjing Jinlong New Energy bus output reached 8796 units, with annual sales income of 5.5 billion yuan and net profit of more than 500 million yuan. The sales volume of new energy buses ranked second in the country for two consecutive years from 2014 to 2015.
Not only that, Kaiwo's future development prospects are also worth looking forward to. It is reported that the Nanjing Jinlong passenger car production base built in Nanjing Lishui Development Zone will be put into production of 7 SUV and MPV in the second half of 2017.New energy vehicleType. The total investment of the base is 5 billion yuan, with an annual output of 1 million units and an annual output value of 100 billion yuan in the future.
On October 30th, the signing ceremony of the strategic cooperation framework agreement between Kaiwo New Energy Automobile Group and Xi'an Municipal Government, and the project of Kaiwo New Energy vehicle Intelligent Building Base in Xi'an High-tech Zone was held. It is expected that the project will invest 10 billion yuan in Shaanxi.
Thus it can be seen that the target company of Skyworth's proposed equity acquisition is a good target, so why did Skyworth's share price not rise but plummet after the news was announced?
Greater uncertainty is the main reason for the sharp fall in stock prices?
In the view of Zhitong Financial APP, Skyworth has fallen instead of rising for two reasons. The first is that the potential acquisition of equity by the company is still in the preliminary negotiation stage and there is still uncertainty.
Second, Skyworth rose 10.73% in the three trading days from November 22 to November 24, and has accumulated a certain profit in the short term, so we do not rule out the possibility that some funds will make use of the good news to ship goods.
From a technical point of view, Skyworth shares recently hit a low of 3.43 Hong Kong dollars. Although Skyworth shares fell sharply on November 28, they did not fall below that low. It is very important whether the share price falls below this low in the short term. If it effectively falls below HK $3.43, it means that the market thinks that Skyworth is less likely to succeed in acquiring Kaiwo shares. On the contrary, if Skyworth shares stabilize or even "recover lost territory" in the short term, it shows that the market is still optimistic about Skyworth's acquisition of Kevo shares.
Of course, if investors are optimistic about Skyworth's future development, there is no need to care about the ups and downs of the day.