On April 13, Hangzhou Advance Gearbox Group Co.Ltd(601177) announced that the general meeting of shareholders of the company had passed a proposal on matters related to exempting the voluntary share locking commitment of the company’s shareholder Hangzhou Guangfa Technology Co., Ltd. According to the announcement issued by Hangzhou Advance Gearbox Group Co.Ltd(601177) previously, in order to further enhance the control over Hangzhou Advance Gearbox Group Co.Ltd(601177) and boost investor confidence, Xiaoshan state owned assets, the controlling shareholder of the company, launched a tender offer. It is generally believed that GF technology will probably take the opportunity of this tender offer to transfer its shares. The exemption of this share lock-in may promote the tender offer process.
On April 11, the CSRC, the SASAC and the all China Federation of industry and Commerce jointly issued a notice on further supporting the healthy development of listed companies, which pointed out that the SASAC, in accordance with the principle of facilitating enterprises, actively guided and supported the share repurchase and cash dividend of state-controlled listed companies, and guided state-controlled listed companies to become an example to promote the stable development of the capital market. The state-owned shareholders of listed companies should be active and responsible shareholders, actively increase their holdings of shares of listed companies with undervalued value, and support listed companies to implement share repurchase and cash dividends.
Previously, market analysis said that Xiaoshan state-owned assets will further stabilize the status of major shareholders of state-owned assets through increasing holdings, or bring more support. Combined with the latest policies, the tender offer launched by Xiaoshan state-owned assets is undoubtedly an early response to national policies. As an example of state-controlled listed companies promoting the stable development of the capital market, they will get more favorable policies in the future.
From the market level, the tender offer itself will also bring the expected rise of share price with the increase of strong shareholders. According to the previous announcement, for this tender offer, Hangzhou Advance Gearbox Group Co.Ltd(601177) was suspended from the opening of the market on March 24. The price before the suspension was 7.91 yuan. After the resumption of trading on March 28, it rose 9.99% to 8.7 yuan.
Analysts pointed out that combined with the market reaction after the resumption of trading, the tender offer is undoubtedly good news. “Judging from the stock price trend since March, the head ship stocks, including China Cssc Holdings Limited(600150) , Cssc Offshore & Marine Engineering (Group) Company Limited(600685) , Asian Star Anchor Chain Co.Ltd.Jiangsu(601890) and so on, have been all the way down, while Hangzhou gear has shown a V-shaped trend. Especially after the announcement, it was limited to 8.7 yuan for a time, and is still at the high level since March.”
“At present, the voluntary share locking commitment of GF technology has been exempted, which makes the prospect of tender offer more clear.” Analysts said that with the further advancement of the acquisition, more favorable conditions will be released, and attention can be paid to medium and long-term opportunities. Especially since April 12, the head stocks of the shipbuilding industry, including Hangzhou gear, have shown obvious signs of recovery.
“The fundamentals of the overall improvement of the shipbuilding industry are determined, and the relevant sectors deserve long-term attention.” Data show that in January this year, the global new ship orders were 3.07 million revised gross tons (CGT), an increase of 72% month on month. China’s orders were 1.47 million revised gross tons, accounting for 48%, ranking first in the world. In this context, Hangzhou Advance Gearbox Group Co.Ltd(601177) has maintained strong growth in revenue and profit. According to the announcement on the advance increase of annual performance of Hangzhou Advance Gearbox Group Co.Ltd(601177) in 2021, the annual performance in 2021 is expected to increase by 42 million yuan to 60 million yuan, with a year-on-year increase of 50% ~ 71%; Compared with the same period of last year, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses is expected to increase by 14.4 million ~ 32.4 million yuan, with a year-on-year increase of 42% ~ 96%.
