Anhui Zhongding Sealing Parts Co.Ltd(000887) (000887)
event:
The company announced that the controlling shareholder Zhongding group plans to acquire 100% equity of Bridgestone’s shock absorption business company for a consideration of 1 yen.
Mergers and acquisitions optimize the market structure and make up for the shortcomings of the Japanese market.
The main markets of Anhui Zhongding Sealing Parts Co.Ltd(000887) damping business are concentrated in China, Europe and America, while Japanese customers are relatively few. Bridgestone is a leading global rubber parts enterprise in Japan. This M & A will make up for the shortcomings of Zhongding damping business in the Japanese market and improve its international market layout. At the same time, Zhongding group promises to inject the profits of acquired assets into listed companies.
Promote the layout of air springs and make steady efforts in air suspension business.
The target of M & A owns air spring business and has product collaboration with the air suspension business of listed companies. We believe that with the promotion of high-end Chinese independent brands and the penetration of high-end new energy models, air suspension ushers in a period of rapid development. With the maturity of China’s air suspension market, the competitive advantage of third-party suppliers will be the R & D and supply capacity of core components. At present, the main air suspension component of Anhui Zhongding Sealing Parts Co.Ltd(000887) is air compression unit, and the acquisition of Bridgestone damping business will expand the company’s air suspension business to “air compression unit + air spring” small assembly products, which is expected to promote the value of the company’s supporting single vehicle and its stickiness to downstream customers.
Investment advice
It is estimated that the company’s EPS from 2021 to 2023 will be RMB 0.80/0.96/1.11 respectively. Maintain the “buy” rating.
Risk statement
Fluctuation of raw materials; Risks such as lower than expected growth rate of production and sales of new energy vehicles.
