\u3000\u3000 Haier Smart Home Co.Ltd(600690) (600690)
The company plans to issue an additional 41.41 million H shares to help the development of global business and maintain the “buy” rating
On January 11, the company announced that it planned to issue 41.41 million additional H shares to five institutional investors including goldensunflower in private. We believe that this strategic placement, on the one hand, deeply binds the core management of the company and Haier Group and is consistent with the interests of the company’s shareholders; On the other hand, the introduction of well-known overseas investment institutions for the company is expected to integrate multiple resources and help the company’s long-term development of globalization. The company has made steady progress in the strategy of high-end brand products, business globalization and digitization, and the logic of net interest rate improvement is expected to continue to be realized. We maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 13.01/147.9/16.88 billion, corresponding to EPS of RMB 1.38/1.57/1.80 respectively. The current share price corresponds to PE of 21.4/18.8/16.5 times, maintaining the “buy” rating.
The placement involves the core management of the company and the group to achieve in-depth binding with the interests of shareholders
The net capital raised by the additional issuance of H shares was about HK $1.15 billion, and 41.41 million H shares were allotted, accounting for 1.47% of the issued H shares and 0.44% of the total issued share capital. The placing price was HK $28 / share, 14.37% lower than the closing price on January 11 and 14.92% / 13.81% / 12.45% lower than the average closing price of the previous five / 20 / 30 trading days. The placements are made by golden sunflower and segantii, pagpegasus Fund LP, janchor and valliance. Among them, golden sunflower will subscribe for 34.84 million shares, and a total of 404 core managers of the company and Haier Group will invest by subscribing for structured notes issued by golden sunflower. We believe that this placement is conducive to the deep binding between the management of the company and Haier Group and the interests of the company’s shareholders.
The raised funds will be invested in overseas business and ESG field, which is expected to strengthen the company’s global business development
The introduction of segantii and other well-known overseas investment institutions helps to integrate multiple resources and contribute to the development of globalization during the rapid expansion period of the company’s overseas business. From the purpose of the proceeds from the placement, 70% of the funds raised from the placement will be used for the capacity construction of overseas industrial parks, 15% for ESG related fields such as low-carbon and energy-saving technology research and development, 10% for the information upgrading of overseas industrial parks and 5% for the construction and promotion of overseas channels, which will continue to strengthen the long-term development of the company’s overseas business. In addition, the relatively long lock up period of the Placement Shares (12 months for golden sunflower and 6 months for other institutions) also reflects investors’ confidence in the company’s vision and creating long-term value for shareholders. In view of the recent market fluctuations, we believe that the longer lock up period is beneficial to the company and shareholders as a whole.
Risk tip: industry competition intensifies; Rising prices of raw materials; Overseas operation risk.
