\u3000\u3000 Haier Smart Home Co.Ltd(600690) (600690)
The company issued 41.41 million additional shares at a placing price of HK $28
1) the company placed 41.4136 million shares, accounting for 0.441% of the total issued shares of the company and 1.469% of the total issued shares of H shares. The placement price of this additional issuance is HK $28 per share.
2) the assignees golden sunflower (Haier employee trust) and segantii, pagpegasus Fund LP, janchor and valliance respectively subscribed for 34.86 million shares, 2.19 million shares, 2.18 million shares, 1.31 million shares and 880000 shares newly issued by the company, with corresponding consideration of HK $975.97 million, 61.2 million, 60.94 million, 36.72 million and 24.75 million respectively.
3) after the issuance and placement, the total number of shares (a + H + D) of the company is 9.44 billion shares, of which the number of H shares accounts for 30.30% of the total number of shares, and A-Shares and D shares account for 66.83% and 2.87% respectively.
Internal subscription deeply binds the interest relationship between the company and the management, and improves corporate governance
1) the main investors of golden sunflower include directors, supervisors and directors, supervisors and top executives of Haier Group, which helps to further bind the interest relationship between the company and the management, improve the governance structure and fully stimulate the enthusiasm of the management team.
2) the directors of the company, Mr. Liang Haishan, Mr. Li Huagang and Mr. Xie Juzhi, respectively contributed HK $18.35 million, HK $18.35 million and HK $11.01 million to golden sunflower in the form of structural notes, and the supervisors and other personnel contributed HK $28.63 million (structural notes).
The net income will be used for overseas business and ESG, and white power leading will be available in the future
1) 70% of the proceeds will be used for capacity construction of overseas industrial parks, 15% for product end energy-saving and low-carbon technology R & D and carbon neutralization capacity building (ESG), 10% for information upgrading of overseas industrial parks and 5% for overseas channel construction and promotion.
2) in the past 21 years, the company’s overseas business has made great progress and its profitability has been realized. The company’s overseas business revenue in the first three quarters of 21 years was + 16.8% year-on-year; The operating profit margin increased by 1.7pct compared with the same period last year. We expect that the company’s independent brand building and information efficiency improvement will release more profit space + the production capacity of overseas projects under construction will be released, and the company’s overseas layout can be expected in the future.
3) in terms of regions, North America accounts for the largest proportion of overseas business, and Haier’s GEA city accounts for the second place in the region, which is expected to surpass Whirlpool (China) Co.Ltd(600983) in the future. The company has low profit margins in Southeast Asia, South Asia and Australia and New Zealand markets. In the future, the company will further improve the overall overseas profitability by improving operation efficiency, large-scale production, integrating organization management and industrial chain.
Profit forecast and valuation
Looking forward to this year, in terms of domestic sales, with the promotion of systematization and the development of kitchen electricity and air conditioning, Casati will continue its high growth momentum and lead the growth of revenue; At the same time, the whole process efficiency will be improved through digital transformation, and the profitability of domestic sales will be further improved. Overseas, the recent real estate sales in the United States are good, and the overseas business performance is worth looking forward to through high-end licensing and operation. We believe that in the next few years, the company’s global operation will usher in a harvest period, the management of domestic and foreign sales business will be improved, the operation efficiency will be improved, and the profitability will be continuously improved. At the same time, the company’s long-term brand layout through smart family and three winged bird scene has a promising future. To sum up, the company’s EPS is expected to be 1.40/1.65/1.90 yuan in 21-23 years, and the corresponding PE is 21x / 18x / 16x respectively, maintaining the buy rating.
Risk tips
The price rise of raw materials exceeded expectations; The demand is less than expected; Intensified market competition
