\u3000\u3000 Haier Smart Home Co.Ltd(600690) (600690)
Event: on January 11, 2022, Haier announced that it planned to issue additional H shares by non-public offering and apply for listing on the Hong Kong stock exchange. According to the placing agreement, the company plans to issue 41413600 new H shares at the placing price of HK $28 / share, accounting for about 0.441% of the total issued shares and 1.469% of the H shares, and about 0.439% and 1.448% of the expanded total shares and H shares respectively.
Comments:
The introduction of strategic investors improves the recognition of the company’s investment value. Golden sunflower, segantii, PAG Pegasus Fund LP, janchor and valliance are the grantees of the placement shares. Each party subscribed 3485.6/218.6/217.6/131.1/884000 shares respectively, accounting for 84.2% / 5.3% / 5.2% / 3.2% / 2.1% of the Placement Shares respectively. Golden sunflower is an employee stock ownership platform, and its commitment to subscribe for the Placement Shares is locked for 12 months; All investors except golden sunflower are well-known overseas professional investment institutions, and the lock up period of the placement shares they promise to subscribe for is 6 months.
Executive subscription shows the company’s confidence in long-term development. A total of 404 investors will subscribe for the company’s shares through golden sunflower. Among them, Haier’s directors, supervisors and directors, supervisors and top executives of subsidiaries have contributed a total of HK $763.5 billion to participate in this subscription, accounting for 7.8% of the total subscription of golden sunflower. The high proportion of the company’s employees participating in this placement not only reflects the management’s confidence in the company’s long-term development, but also helps the management deeply bind the interests of the company, improve the team cohesion and help the company achieve its long-term development goals.
The placement funds will be mainly used for overseas capacity construction and channel layout. The total amount and net amount of the funds raised from this placement are about RMB 1.16 billion and RMB 1.15 billion respectively. 70% of the net proceeds will be used for the capacity construction of overseas industrial parks and 15% for relevant investment in ESG, mainly including the environmental impact management of the whole product life cycle, the research and development of energy-saving and low-carbon technologies at the product end and the construction of carbon neutralization capacity; 10% for information upgrading of overseas industrial parks; 5% for overseas channel construction and promotion.
Investment suggestion: the placement fund ensures the company’s overseas strategic investment and helps the company accelerate the expansion of overseas markets. The company is a leading white power enterprise in China. For many years, it has adhered to building the overseas market with its own brand. At present, it has a perfect brand, channel and supply chain layout overseas. The placement of new shares will help the company further expand and optimize the overseas market and improve the overseas profitability. We maintain the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 126 / 151 / 16.9 billion respectively, corresponding to 22 / 18 / 16 times of the current market value PE respectively, maintaining the “buy” rating.
Risk tip: the channel reform is not as expected, the epidemic situation in China is repeated, and the price of raw materials is rising
