Report guide
The company intends to acquire Yantai Shu Chi and Zhongzhi Yichi plan adjustment.
Main points of investment
The additional issuance plan has been slightly adjusted, and Shu Chi's performance promises that due to the completion of the implementation of the rights and interests distribution plan in 240 million, the issue price and size of the assets purchased by this issue will be adjusted accordingly, the issue price will be adjusted from 8.59 yuan per share to 8.56 yuan per share, and the number of shares issued will be adjusted from 173 million shares to 179 million shares. The target of the transaction is the 95.42% stake in Yantai Shuchi and 100% equity held by 46 natural persons, including Zhongzhi New Energy and Yu Zhongguo. After being evaluated by professional institutions, the transaction price has been adjusted from 1.482 billion yuan to 1.532 billion yuan. At the same time, the company plans to raise supporting funds from non-public offerings of no more than 10 specific objects, and the amount of funds raised will be adjusted from no more than 1.255 billion yuan to no more than 1.009 billion yuan. The funds raised are mainly used for the technical renovation of new energy buses in Yantai Shuchi, Zhongzhi Yike and Zhongzhi Chunan and the construction projects of Zhongzhi Automobile R & D Center. As a performance compensation obligation, eight natural persons, including Zhongzhi New Energy and Yu Zhongguo, promised that the net profit of Yantai Shuchi in 2017-2020 would not be less than 100 million yuan, 160 million yuan, 200 million yuan and 240 million yuan, respectively, and the performance commitment would be extended to 2020. Yantai Shuchi trading price corresponds to the four-year average performance commitment valuation of only 5.94 times, the valuation is relatively low. Zhongzhi Yichi adopted the asset-based approach because it did not make a performance commitment.
The growth of home appliance business is limited, and the acquisition of new energy commercial vehicle business opens a growth point. 2016 statistics show that the offline sales of air-conditioning products are 1., 6.3 billion yuan, an increase of 2.47% over the same period last year, and the annual sales of refrigerator products reached 96.4 billion yuan, down 1.8% from the same period last year. The company's original traditional business air-conditioning and refrigerator market has reached a mature saturation stage, growth and profit space is limited, the company urgently needs to face the transformation of emerging industries and open up new revenue and profit growth points. On April 5, 2017, the medium-and long-term Development Plan of the Automobile Industry jointly issued by the three ministries and commissions pointed out that the promotion and application of new energy vehicles will be strengthened, and the annual production and sales of new energy vehicles will reach 2 million by 2020. by 2025, new energy vehicles account for more than 20% of automobile production and sales, and the new energy vehicle industry has ushered in a historic opportunity for development. Through mergers and acquisitions, investment and equity participation, and the establishment of industrial funds, the company has already laid out new energy vehicle motors (New Power), electric control (Lianteng, Yundi Electric), electric air conditioners and compressors (Carnot and Yizhou), HFC (Yihuatong), graphene new materials business (Pulan Technology), BMS (Regal), charging piles (Hanwatt), special purpose vehicles (Sinochem Commercial), and financial leasing (Fujia). Strategic layout of the whole industry chain upstream and downstream of new energy vehicles. In 2016, the company's new energy automobile parts sales segment achieved business income of 545 million yuan, an increase of 45.14% over the same period last year, accounting for 19.80% of the main business income. The acquired Yantai Shuchi and Zhongzhi are mainly engaged in the R & D, production and sales of new energy commercial vehicles, including new energy pure electric buses and new energy pure electric van transporters, which will further improve the company's new energy vehicle industry chain. From January to September 2017, Yantai Shuchi and Zhongzhi achieved a total operating income of 1.092 billion yuan, and the total net profit belonging to the shareholders of the parent company was 75.5495 million yuan, of which Yantai Shuchi's revenue and return net profit were 625 million yuan and 64.1569 million yuan respectively. We expect Yantai Shuchi to complete the annual performance commitment of 100 million yuan in 2017 is a high probability event.
Profit forecast and valuation
Without considering the supporting financing, if the share purchase assets of this issue are successfully completed, the total share capital of the company will increase from 1.136 billion shares to 1.315 billion shares. After Yantai Shuchi amalgamates the table, according to the performance commitment, the company is expected to increase 100 million yuan, 160 million yuan and 200 million yuan in 2017-2019, and the company is expected to achieve EPS0.26 yuan, 0.36 yuan and 0.48 yuan in 2017-2019. It holds a buy rating corresponding to the current share price valuations of 39 times, 28 times and 21 times, respectively.
