\u3000\u3000 Haier Smart Home Co.Ltd(600690) (600690)
Event: the company announced that it plans to issue additional H shares in the form of non-public offering. The placing price is HK $28 per share, with a total amount of HK $1.16 billion. The 41.414 million shares placed this time account for 0.4% and 1.5% of the total number of existing issued shares and H shares; After the completion of the share placement, the Placement Shares will account for 0.4% and 1.4% of the total issued shares and H shares.
The adapter covers a wide range and deeply binds core executives. The placing covers a wide range. The grantees include golden sunflower and segantii, pagpegasus Fund LP, janchor and valliance, accounting for 84% / 5% / 5% / 3% / 2% respectively. Among them, golden sunflower is mainly the management and related personnel of the company’s subsidiaries, covering a total of 404 people. The directors of the company Liang Haishan, Li Huagang, Xie Juzhi and supervisor Liu Dalin contributed HK $1835 / 1835 / 1101 / 4.89 million respectively, accounting for 1.9% / 1.9% / 1.1% / 0.5% of the total amount of the subscribers respectively. The directors, supervisors and top executives of the subsidiaries contributed HK $23.74 million in total, Accounting for 2.4% of the total amount of the subscriber. In the company’s placement plan, the core executives Liang Haishan and Li Huagang account for a large proportion, followed by the high proportion of directors and supervisors of subsidiaries. While deeply binding the interests of the company’s core executives, they also include the executives of subsidiaries into the scope of interest binding through ways other than equity incentive, covering a wide range. On the one hand, the higher placement shares reflect the executives’ confidence in the company’s future operation, on the other hand, they can fully mobilize the enthusiasm of employees. Corporate governance continues to improve, internal operating efficiency continues to improve, and help long-term business development.
The funds are mainly used to expand overseas production and accelerate the development of overseas business. The total amount of this placement is HK $1.16 billion, which is mainly used for (1) 70% of the capacity construction of overseas industrial parks; (2) 15% of relevant investment in ESG, mainly including but not limited to environmental impact management in the whole product life cycle, product end energy-saving and low-carbon technology research and development, and carbon neutralization capacity-building; (3) 10% for information upgrading of overseas industrial parks; (4) 5% for overseas channel construction and promotion. In the first three quarters of 2021, the company continued to make efforts in overseas business, accelerated high-end brand creation in various markets, met the needs of different user groups through seven brands, created differentiated competitive advantages, and promoted the continuous optimization of the company’s overseas operating profit margin. We believe that under the background of the rapid development of overseas business, this placement will help the development of the company’s overseas business from the aspects of production capacity and channel construction, and accelerate the company’s pace of improving the global supply chain layout and improving manufacturing efficiency.
Profit forecast and investment suggestions. It is estimated that the EPS will be 1.65/1.87 yuan from 2022 to 2023 respectively. The company’s operation is stable, the overseas layout is accelerated, the high-end layout is promoted smoothly, and the “buy” rating is maintained.
Risk tip: the price of raw materials may fluctuate sharply, and the expansion of new products is less than expected.
