Main points of investment
It is proposed to transfer 31% equity of Sixiang with 409 million yuan.
The company announced that it intends to transfer 31% equity of Dongguan Sixiang from 409 million yuan to Shenzhen Venture Capital Manufacturing Transformation and upgrading New Materials Fund (Limited Partnership) and other investment institutions, and is expected to earn an investment income of 382 million yuan. At the same time, the Deep Venture Manufacturing Transformation and upgrading New Materials Fund (Limited Partnership) plans to increase capital to Dongguan Sixiang with a pre-capital valuation of 1.4 billion yuan (limited partnership).
After the completion of equity transfer and capital increase, Dongguan Sixiang will no longer be included in the scope of the company's consolidated financial statements, and the company will continue to hold 18.0645% of Dongguan Sixiang.
Dongguan Si Xiang is mainly engaged in new energy vehicle power battery heating, heat insulation, heat dissipation and automotive electronics manufacturing business. In 2021, Dongguan Si Xiang has an income of 830 million yuan and a net profit of 74.23 million yuan, while from January to June 2022, Dongguan Si Xiang has an income of 610 million yuan and a profit of 44.57 million yuan.
Optimize the structure of capital and debt and alleviate the pressure of operation
In recent years, Dongguan Sixiang's business has developed rapidly. Due to its long downstream accounts receivable period and more commercial paper settlement, shorter upstream accounts payable period, lower gross profit margin, capacity expansion and other factors, Dongguan Sixiang's demand for operating capital has increased significantly. After the completion of this transaction, the pressure on the company's operating funds has been alleviated, the cash flow has gradually improved, the asset-liability structure has been further optimized, and the external financing channels of Dongguan Sixiang have been widened to ensure development.
Further focus on the main business and promote strategic development
The company's development strategy focuses on the technological innovation and industrialization of landscape thermal management, and increases investment in the fields of power, energy storage and data center. after the completion of the transaction, the company will better focus on the main business and promote the strategic development of the company.
Electric power: UHV DC water cooling is expected to usher in a new round of construction peak, and the development of offshore wind power brings new demand; energy storage: the newly installed capacity of energy storage is expected to be optimistic. At present, the company has technical reserves and solutions based on lithium battery single cabinet energy storage liquid cooling products, large energy storage power station liquid cooling system, prefabricated energy storage liquid cooling products and so on. Data center: "calculating from east to west" + construction of green data center promotes the demand of liquid cooling market in data center. The company can provide cold plate liquid cooling server thermal management solution, immersion liquid cooling server thermal management solution and container liquid cooling data center solution. The company's third quarterly report shows that the contract liability of 87 million yuan increased by 109.2% compared with the same period last year, mainly due to the increase in advance payment for server liquid cooling products.
Investment suggestion
Considering that the transaction has not yet been completed, do not adjust the profit forecast for the time being, the company is expected to return to the mother net profit of 0.57,1.34 and 180 million yuan in 2022-2024; PE 63,27,20 times to maintain "buy".
Risk hint
Gross profit margin is lower than expected; bidding in UHV field is not as expected.
