Shenzhen Colibri Technologies Co.Ltd(002957) (002957)
Event: the company issued an announcement on November 28, 2021, Kerui new energy, a wholly-owned subsidiary of the company, plans to purchase Huizhou Dingli Intelligent Technology Co., Ltd. (hereinafter referred to as “Dingli intelligent” and “target company”) in cash ）100% equity, and the transaction consideration is RMB 276.8 million. Dingli intelligent’s main product is lithium battery charging and discharging intelligent test equipment. The acquisition of Dingli intelligent will help to supplement the company’s overall solution capability in the middle and rear section of lithium battery and improve the company’s overall competitiveness.
Information about the company’s merger and acquisition of Dingli intelligence
(1) Acquisition related information: Kerui new energy, a wholly-owned subsidiary of the company, plans to pay in cash (self owned or self raised funds) acquire 100% equity of Dingli intelligence, with a transaction consideration of RMB 276.8 million. In this transaction, 100% equity of Dingli intelligence adopts differential pricing. Among them, ① gambling equity is 42% equity of Dingli intelligence, with a transaction consideration of RMB 126 million, and the counterparties include Zeng ailiang, Liang Hongyun and Jinheng Hengyuan; ② non gambling equity is 58% equity of Dingli intelligence, with a transaction consideration of RMB 15 , RMB 0.8 million, with counterparties including Yongcheng No. 2, Hongshun investment, Jinheng HengYuan, Xu Xiaoju, Huang Ming and Cai Donghui.
(2) Relevant information of the target company: Dingli intelligent focuses on the design, R & D, production, sales and technical services of intelligent test equipment for lithium battery charge and discharge. It is one of the few power batteries in the industry that can supply various types of power batteries at the same time (cylindrical, soft pack, square lithium battery) a supplier providing a complete set of whole line solutions for lithium battery post-treatment process. Dingli intelligent products focus on the post-treatment process of lithium ion battery production, including formation / capacity separation equipment, voltage internal resistance test equipment, sorting equipment and other core equipment.
(3) Performance commitment: for the gambling equity counterparties, Dingli intelligence promises that the net profit deducted from non return to parent will not be less than 20 million yuan, 25 million yuan, 35 million yuan and 40 million yuan respectively from 2021 to 2024.
The implementation of M & A will strengthen the company’s solution ability in the middle and later stages, and highlight the synergy. The company is positioned as a solution provider in the middle and rear segment of lithium battery manufacturing equipment industry. This acquisition of Dingli intelligence will help to supplement the company’s overall solution capability in the middle and rear segment of lithium battery, so as to enhance the company’s overall competitiveness in the lithium battery equipment industry and highlight business synergy. Meanwhile, the company established a wholly-owned new energy equipment subsidiary in October this year, and plans to inject 300 million yuan to carry out new energy related business. It fully reflects the company’s determination to develop new energy business and is expected to usher in explosive growth in the future.
The orders of downstream core customers were landed, which fully verified the leading advantage of the company’s power lithium lamination machine. At present, the company has successfully developed the third generation cutting and stacking all-in-one machine, which is at the industry-leading level in lamination efficiency and accuracy. In August 2021, the company won the bid for the cutting and stacking all-in-one machine project of honeycomb Energy Technology Co., Ltd., with the corresponding bid winning price of RMB 176 million. The successful landing of core customer orders also fully verified the industry-leading position and market recognition of the company’s power lithium lamination machine, which is expected to further open the market space of the company’s power lamination machine in the future.
Maintain the “overweight” rating. The company is a leading provider of automation equipment and solutions in China. The revenue of new energy business is expected to fully benefit from this round of rising momentum and achieve rapid growth. The acquisition of 100% equity of Dingli intelligence will help the company to supplement the overall solution of the middle and rear section of lithium battery and improve the overall competitiveness of the company. Due to the adjustment of the company’s product structure, the rise of manpower and raw materials and other factors, the short-term net profit is under pressure. We lowered our previous profit expectation and temporarily ignored the performance thickening caused by the acquisition. It is estimated that the company’s net profit attributable to the parent company from 2021 to 2023 will be RMB 272 million, RMB 380 million 469 million yuan (the predicted value before adjustment is 322 million yuan, 396 million yuan and 472 million yuan), corresponding to 44, 31 and 25 times of PE respectively, maintaining the “overweight” rating.
Risk tips: the risk of industry fluctuation caused by macro-economy, the risk of technology upgrading iteration, the risk that the development of new energy business is not as expected, the risk that the performance commitment of the target company cannot be realized, and the risk of downstream application market fluctuation.
