\u3000\u3000 Haier Smart Home Co.Ltd(600690) (600690)
Event:
The company announced the H-share placement plan: 41.41 million shares were placed, accounting for 0.4% of the total share capital and 1.5% of the H-shares. The placement price was HK $28 / share, 14% lower than the closing price on January 11, with a total amount of HK $1.16 billion (about RMB 950 million).
Large subscription by management
Golden sunflower, a shareholding platform for employees and management of Haier Group, is the main undertaker of this placement. Golden sunflower subscribed 34.86 million shares, accounting for 84% of the total number of shares placed. Among them, Liang Haishan, Li Huagang, Xie Juzhi and other senior executives all contributed more than HK $10 million. Other subscribed investment institutions include segantii, pagpegasus Fund LP, janchor and valliance.
In terms of the lifting period, the lifting period of golden sunflower, an employee and management shareholding platform, is 12 months, higher than that of other investors, demonstrating the management’s confidence in the development of the company.
Funds are mainly invested overseas
From the perspective of fund use, 70% is used for the capacity construction of overseas industrial parks, 10% for the informatization of overseas industrial parks, and 5% for the assumption and promotion of overseas channels. Another 15% is used for ESG related investments.
According to news reports, since 21q4, the company’s overseas factory projects in Turkey and Romania have continued to land. This placement further strengthens the company’s overseas localization capacity construction and helps to improve the company’s overseas revenue.
Status tracking
We believe that the company’s overseas business, governance efficiency improvement and high-end are continuously being realized.
1) overseas business: the overseas business of 21q1-3 company increased by 17% compared with the same period in 2020, and the operating profit margin increased by 1.7pct compared with the same period. This time, the company continues to invest more capital in overseas business, which is expected to continue to be enabled;
2) governance and efficiency improvement: the company comprehensively promoted the digital transformation. In 21q1-3, excluding the impact of CAOS business, the sales expense rate and management expense rate decreased by 1.1pct and 0.6pct compared with the same period in 2020;
3) high end: the company has cultivated the high-end brand Casati for many years. From January to September, the revenue increased by 57% compared with the same period in 2020, significantly outperforming the industry.
Investment advice
The company has adhered to the strategy of high-end and overseas independent brand creation for many years, and gradually blossoms and bears fruit. With the further binding of the company’s management, it is expected that the upward momentum of the company’s performance will be enhanced. It is estimated that the annual revenue of the company from 21 to 23 will be 234 billion, 259.3 billion and 284 billion, yoy + 12%, 11% and 10%; It is estimated that the performance of 21-23 years will be 12.7 billion, 15.9 billion and 18.1 billion, yoy + 43%, 25% and 14%. Maintain the “buy” proposal.
Risk tips:
The price of raw materials has increased significantly again, geopolitical risks and overseas consumption have decreased significantly
