In the evening of November fourthBenefit and wisdomAccording to the announcement, the company intends to acquire a 100% stake in LOM INDIA through its wholly-owned subsidiary Salcomp Manufacturing Oy (hereinafter referred to as buyer 1) and wholly-owned holding company Salcomp Oyj (hereinafter referred to as buyer 2), with an estimated purchase price of US $29.9154 million.
Today, the company's share price rose 0.27% to 11.02 yuan, with the latest total market capitalization of 75.4 billion yuan and the latest turnover of 2.127 billion yuan. It is worth mentioning that the company's share price has risen more than 330% since the beginning of the year due to the hype of hot sectors such as OLED screen, flexible screen and 5G.
(photo: Gelonghui APP)
What does LOM INDIA know?
According to public data, LinkedIn is one of the manufacturers of ferrite magnetic material components. The main products include ferrite permanent magnet components and ferrite soft magnetic components. In 2018, the company went public with backdoor Jiang Fan Magnetic Materials, and the listed company changed its name to Leiyi Zhizao. The main business has also changed from the original production and sales of magnetic materials to the production and sales of new electronic components, mobile phones and computer accessories.
As of September 30, 2019, the controlling shareholder of the company is Lingsheng Investment (Shenzhen) Co., Ltd., which holds 60.46% of the shares of the company. In addition, the Hong Kong Securities Clearing Limited (Luke Tong) and the 101 portfolio of the National Social Security Fund are among the top 10 shareholders of the company.
(photo source: Wind)
Take a specific look at this acquisition, the announcement shows that the subject matter of the transaction is LITE-ON MOBILE PTE. The LOMINDIA100% shares of the underlying company held by LTD (hereinafter referred to as seller 1) and LITE-ON MOBILE OYJ (hereinafter referred to as seller 2). Seller 1 transfers all LOMINDIA88.41% shares to buyer 1; seller 2 transfers all LOMINDIA11.59% shares held by seller 2 to buyer 1 and buyer 2 in the proportion of 11.58% and 0.01%, respectively.
The transaction share transfer consideration of US $29.9154 million shall be paid in cash, of which US $1.05 million of the share transfer consideration of this transaction will be paid by buyer 1 to seller 1 on the date of signing of the share transfer agreement, the rest of the share transfer consideration will be paid to the seller on the settlement date.
It is reported that the acquired LOMINDIA was established in June 2006 and is located in Chennai, India.NokiaIn the special economic zone, the main business is mobile phone mold, assembly line design, manufacturing and sales, the company is now 100% controlled by Guangbao Technology Co., Ltd.
After this acquisition, LinkedIn will own all the factories owned by LOMINDIA. According to the disclosed announcement, the company achieved operating income of 83.722 million Indian rupees from April to March 2018 and 56.249 million Indian rupees from April to September 2019, while net profit for the same period was 17.842 million Indian rupees and 19.585 million Indian rupees. By the end of September, the company's total assets were 2.156 billion Indian rupees. The debt ratio is 2.3%.
(photo Source: company announcement)
According to relevant analysts, LinkedIn's acquisition of LOM INDIA aims to improve the company's industrial chain and further expand the precision metal processing industry downstream.
LYZ's main business is precision functions and structural components. In the first half of 2019, the main business achieved operating revenue of 6.591 billion yuan, accounting for 68.7% of revenue.
(photo source: Wind)
Precision functional parts are mainly die-cutting or metal parts that play the role of viscose, insulation, heat dissipation, shielding and support, which are in the middle of the consumer electronics industry. Through the processing of upstream raw materials, die-cutting, CNC, stamping, fastening and other products used in downstream consumer electronic terminals are produced.
Over the past year, the company continues to expand the precision metal processing industry downstream, actively layout automotive motor components, PIN plugs, wireless charging, heat dissipation module business. In August this year, the company completed the acquisition of 100% of the Finnish company Selcon, which is intended to further enhance the company's competitiveness in the charger module industry.
Net profit increased by nearly 70% in the first three quarters.
After a thunderous performance in 2018, LinkedIn seems to have ushered in a big reversal in its second year of backdoor listing.
According to the third quarterly report, from January to September 2019, the company achieved operating income of 16.263 billion yuan, an increase of 1.07% over the same period last year, and a net profit of 2.099 billion yuan, an increase of 696.62% over the same period last year.
(photo source: Wind)
The performance seems to achieve rapid growth, but according to the three-quarter report, the sharp increase in net profit growth is mainly related to the performance compensation of Dongfang Liangcai, a subsidiary, in which the performance compensation stock is measured according to the closing price of the company's stock. the amount of change is included in the fair value change profit and loss. As a result, 790 million yuan is included in non-recurrent profit or loss.
As a result of two acquisitions that led to the company's performance in 2018, from 2014 to 2015, the company successively acquired 100% stake in Dijing Optoelectronics and 100% stake in Oriental Liangcai. Through these two acquisitions, Leiyi Zhizao opened up a series of businesses such as liquid crystal display modules and precision structural components on the premise of taking magnetic materials as its main business, and the two acquisitions did greatly improve the company's performance, according to the data. From 2015 to 2016, the company achieved operating income of 4.869 billion yuan and 12.052 billion yuan respectively, an increase of 136.34% and 147.5% respectively over the same period last year. In the same period, the net profit of homing was 46 million yuan and 234 million yuan, up 1195.2% and 408.31% respectively.
However, in 2018, due to the problem of the capital chain of Jinli Group, the previously acquired subsidiary Dongfang Liangcai failed to fulfill its performance commitment, which was superimposed by factors such as 1.119 billion yuan of advance bad debts in the company's commodity trading business, resulting in a net loss of 680 million yuan.
It is worth mentioning that while the company continues to acquire, goodwill is also increasing. By the end of the third quarter of 2019, this index was 2.479 billion yuan, an increase of 44.26% over the beginning of the year, mainly due to the company's acquisition of Selcon during the reporting period. If the goodwill of the company is impaired in the future, it will have an impact on the company's operation to a certain extent.
(photo source: Wind)
The company's accounts receivable are also rising. According to data, from January to September 2015 to 2019, they were 1.123 billion yuan, 2.67 billion yuan, 2.601 billion yuan, 6.659 billion yuan and 6.759 billion yuan respectively, a six-fold increase in five years.
(photo source: Wind)
Inventories also soared from 695 million yuan in 2015 to 3.502 billion yuan from January to September 2019, a fivefold increase in five years.
(photo source: Wind)
At present, the company is also facing a lot of financial pressure. by the end of the third quarter, the company's liquidity liabilities were 12.891 billion yuan, of which 4.192 billion yuan were short-term loans, while the cash on the company's account was only 2.328 billion yuan. From this point of view, the company faces a certain degree of short-term debt repayment risk.
In addition, according to Wind statistics, the company's shareholders have reduced their holdings frequently since April, reducing a total of 50.4233 million shares, with a total reduction of about 320 million yuan, of which part of Wang Southeast's reduction is caused by factors such as default of pledged stocks and private loan disputes.
(photo source: Wind)
Generally speaking, the 5G terminal era has brought a broad market for precision functional parts, and the industry the company is in is indeed a good racetrack. In recent years, the company has actively laid out the industrial chain, and the LOM INDIA acquired this time will further expand its synergy. However, the main thing is that Oriental Liangcai, a subsidiary of Linyi Intelligence, still has the impact of losses, and market investors need to be cautious.