In recent years, Jinbei Electrician has been carrying out high-quality extension mergers and acquisitions around the company's cable industry. Tongli Electrician is another "general" after the company acquired Hengyang Cable Factory, Tapai Cable and Wuhan Second Line. Deng said that after the acquisition of Tongli Electric Appliances, the company's electromagnetic wire plate is expected to make new breakthroughs in business scale and profitability.
The profit elasticity of M&A target can be expected.
According to the data, KONE Electric is a high-tech enterprise in Jiangsu Province, which integrates R&D, manufacturing and selling flat winding. It used to be a listed company on the New Third Board, and its sales volume has been leading in the domestic power transmission and transformation market for many years. It is one of the five qualified electromagnetic wire suppliers for UHV communication project recognized by the Ministry of Communications and Construction of State Grid Corporation.
It is understood that the company developed the first transposition conductor for traction transformer for CRRC in the traction transformer market, which broke the foreign monopoly and realized the localization of the core components of high-speed trains. At present, the product has achieved large-scale production, with a market share of over 60%. At the same time, the market share of Kone Electric flat winding products in foreign countries has expanded to the first place, and its sales performance ranks in the forefront of domestic flat winding.
According to the financial data, KONE's revenue in 20 19 exceeded1200 million yuan, and its net profit exceeded 23 million yuan. However, its asset-liability ratio has remained high, exceeding 70% at the end of 20 19, and the resulting financial expenses swallowed up its net profit of about 20 million yuan.
"This is also one of the main reasons for the company to promote mergers and acquisitions. Through mergers and acquisitions and business collaboration, financial costs will be effectively reduced for M&A goals. " According to Deng, in the process of acquiring KONE Electric, both the acquisition of old shares and capital increase were adopted, which will bring incremental funds to KONE Electric, reduce its financial expenses and open up the room for profit growth.
According to financial data, the operating income of Jinbei electromagnetic wire in 2020 is more than 800 million yuan, and the net profit is more than 70 million yuan. In 202010-September, KONE Electric realized an operating income of 954 million yuan and a net profit of 23,660,200 yuan. This means that after the merger, KONE Electric will greatly increase the company's performance.
Seize the historical opportunity of UHV cable
State Grid publicly stated that in 2020, the investment scale of UHV construction projects will be 65.438+065.438+028 billion yuan, which will drive social investment to 223.5 billion yuan, with an overall scale of nearly 500 billion yuan. At the same time, State Grid Corporation of China has studied and compiled the preliminary work plan of UHV and inter-provincial 500 kV AC /DC project in 2020, and clearly pointed out that it is necessary to accelerate the work related to the "5AC/5DC" UHV project.
The above analysts believe that under this background, through this acquisition, Jinbei Electric's own integration ability combined with Kone Electric's development potential provides rich imagination space and power guarantee for "catching up" with UHV's "express train".
"After long-term precipitation, accumulation and layout, Jinbei electromagnetic wire has become the industry leader of four high-end special electromagnetic wire products: UHV, military motor, third-generation nuclear power and new energy motor. Kone Electric has a series of advanced technologies such as heat-resistant self-adhesive transposed conductor for UHV transformer and new materials for high-speed rail traction transformer, and some products have also filled the domestic gap. " Deng said that through this merger, a strong alliance will be realized, which will further accelerate industry changes and increase concentration.
It is worth mentioning that Jinbei Electrician is very familiar with mergers and acquisitions. As early as 2004, the company took the first step of M&A and successfully entered Hengyang Cable Factory. 20 1 1, Xiangtan cable factory electromagnetic wire board (predecessor of cash cup electromagnetic wire) was placed under its command. 20 13 Acquired "Tower Brand" cable, an old brand of home improvement wires in Sichuan with a history of more than 80 years. At the beginning of 2020, Wuhan Second Line, the largest wire and cable enterprise in Hubei Province, also invested in the company.
After a series of extension mergers and acquisitions, Jinbei Electrician's performance has gradually entered the release period. According to the third quarterly report in 2020, the company achieved operating income of 565,438+95 million yuan in the first three quarters, up by 24.9 1% year-on-year, and the net profit attributable to shareholders of listed companies was 654,38+76 million yuan, up by 24. 14% year-on-year. Among them, the company achieved a net profit of 97.5042 million yuan in the third quarter, up 865.438+0.90% year-on-year.
Based on the successful experience of M&A in the past, the above analysts also gave high expectations to M&A of Jinbei Electric. He believes: "From the previous M&A experience of the company, the company has performed well in the integration of main business and resource coordination, and is optimistic about the dual leading advantages of technology and market after the company acquired Tongli Electric."