\u3000\u3000 Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) (000157)
Event: the company announced that it plans to use its own funds of 780 million yuan to acquire 29.99% of the equity of Shenzhen Roadrover Technology Co.Ltd(002813) and will make another offer to acquire no less than 18.83% of the equity as appropriate. It has ensured that the company’s shareholding in Shenzhen Roadrover Technology Co.Ltd(002813) is no less than 48.82%.
It is proposed to invest 780 million yuan to control Shenzhen Roadrover Technology Co.Ltd(002813) , and the cumulative performance commitment of the target company in the next three years will not be less than 75 million yuan. The valuation of Shenzhen Roadrover Technology Co.Ltd(002813) in this acquisition is about 2.6 billion yuan ( Shenzhen Roadrover Technology Co.Ltd(002813) market value before suspension is 2.7 billion yuan), and the transfer price is 21.67 yuan / share. The company plans to use its own / self raised funds of 780 million yuan to acquire 29.99% of its equity. After the transaction is completed, it will become the controlling shareholder of Shenzhen Roadrover Technology Co.Ltd(002813) , and then offer to acquire no less than 18.83% of its equity as appropriate, so as to ensure that the equity of Shenzhen Roadrover Technology Co.Ltd(002813) held by the company is no less than 48.82%. Shenzhen Roadrover Technology Co.Ltd(002813) the subsidiary Nanyang Changfeng promises that the annual net profit attributable to the parent company from 2022 to 2024 will not be less than 25 million yuan (the net profit of Nanyang Changfeng in 2020 and the first half of 2021 will be 35.78 million yuan and 16.1 million yuan respectively).
Shenzhen Roadrover Technology Co.Ltd(002813) mainly engaged in automobile informatization and intellectualization. The two sides are expected to play a synergistic effect in many fields Shenzhen Roadrover Technology Co.Ltd(002813) mainly engaged in the development, production, sales and services of automobile informatization, intellectualization and intelligent travel related products. The main products are intelligent cockpit, intelligent cockpit, intelligent assisted driving and vehicle networking related products. In 2020, 48% of the revenue comes from vehicle navigation products and 37% from slag powder. The company is expected to cooperate with it in the informatization and intellectualization of engineering vehicles such as cranes, excavators and concrete machinery, as well as the improvement of intelligent cockpit and man-machine environment.
In 2021, affected by the lower than expected investment in infrastructure and real estate and the high base, the prosperity of the industry declined. In 2021, affected by the lower than expected investment in infrastructure and real estate and the high base in the second half of 2020, the growth rate of construction machinery represented by excavators and cranes declined or even negative growth. Among them, 340000 excavators were sold, with a year-on-year increase of only 4.6%; Truck cranes sold 49000 units, down 9.3% year-on-year.
Special bonds were issued in advance, major projects were started in various regions, and the expected margin of demand was improved under the expectation of steady growth. Recently, the Ministry of finance has issued a new special debt limit of 1.46 trillion yuan to all regions in advance in 2022. With the local government bonds issued before the end of 2021, the overall scale should exceed 2 trillion yuan, It provides a strong financial guarantee for the stable operation of the economy in the first quarter of 2022. It is expected that with the weakening of the base effect, the recovery of the operating rate of major projects will boost procurement confidence, and the decline range of construction machinery represented by excavators and cranes will be narrowed in the second quarter.
China’s leading construction machinery companies are expected to become global leaders by virtue of internationalization, digitization, electrification and other advantages. Construction machinery is China’s current advantageous industry. Chinese companies can rely on economies of scale, industrial chain and operation efficiency to achieve a global leading position. After completing China’s import substitution, industry leaders such as Sany Heavy Industry Co.Ltd(600031) , Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) will gain considerable market share in the world by virtue of internationalization, digitization and electrification, and move from Chinese leader to global leader.
Investment suggestions:
Considering the changes of industry prosperity, the profit forecast was lowered. It is estimated that from 2021 to 2023, the company’s net profit attributable to the parent company will be 6.6/68/7 billion yuan, with a year-on-year increase of – 9% / 3% / 2%, PE 9.5 / 9.2 / 9.0 times and Pb 1.2 / 1.0 / 0.9 times. Maintain the “buy” rating.
Risk warning: capital construction and real estate investment are not as expected; Acquisition progress is lower than expected
