Haier Smart Home Co.Ltd(600690) Group employees and long-term institutions participate in the placement, which is conducive to the long-term development of the company

\u3000\u3000 Haier Smart Home Co.Ltd(600690) (600690)

Event: the 26th meeting of the 10th board of directors of the company passed the proposal of Haier Smart Home Co.Ltd(600690) on placing new H shares under general authorization. The company plans to issue 41413600 additional H shares and apply for listing on the main board of the stock exchange of Hong Kong Limited, with an allocation price of HK $28 per share. The grantees are golden sunflower and segantii, pagpegasus Fund LP, janchor and valliance. Each party will subscribe for 34.8562 million shares, 218.58 million shares, 217.64 million shares, 131.14 million shares and 88.38 million shares respectively, with consideration of HK $976 million, HK $61.2024 million, HK $60.9392 million, HK $36.7192 million and HK $24.7464 million respectively.

The placing price is reasonable and the discount is limited

The placing price of the company is HK $28 per share, which is about 7.63% lower than the average closing price of HK $30.31 per share quoted on the stock exchange in the last 60 consecutive trading days; A discount of about 14.37% over the closing price of HK $32.7 per share of H shares quoted on the stock exchange on January 11, 2022. The discount between the placing price and the recent stock price is limited.

Employees of controlling shareholders indirectly participate in the placement to strengthen the consistency of interests between the listed company and the group

Among the placeees of this placement, golden sunflower's business objective is to issue structured notes. A total of 404 investors participated in the investment of its structural notes, including the controlling shareholder Haier Group, the employees and management of the main body of the listed company and its subsidiaries. Among them, Liang Haishan, Li Huagang and Xie Juzhi are the directors of the company and Liu Dalin is the supervisor of the company, accounting for 1.9% / 1.9% / 1.1% / 0.5% of the issued structural notes respectively. The indirect participation of employees and management of the controlling shareholder in the placement subscription will help to strengthen the consistency of interests between the listed company and the controlling shareholder Haier Group. At the same time, employees will use self raised funds to participate in investment, and the company will not provide any financial assistance to employees. We believe that this reflects employees' recognition of the company's prospects. At the same time, the placement shares subscribed by golden sunflower shall not be traded or transferred within 12 months from the date of signing the placement letter; The placing shares promised to be subscribed by other allottees shall not be traded or transferred within 6 months from the date of signing the placing letter.

The placement proportion of the company was limited, and the share capital of Hong Kong shares increased slightly

After the issuance and distribution of additional shares, the proportion of the company's original A shares of 6.309 billion shares in the total issued shares has changed from 67.12% to 66.83%, the proportion of the original H shares of 2.819 billion shares in the total issued shares has changed from 29.99% to 30.3%, and the proportion of the original d shares of 271 million shares in the total issued shares has changed from 2.88% to 2.87%. The increase in the share capital of the company's Hong Kong shares is limited, and the dilution of the share capital of A-Shares is limited, After the completion of the distribution, the control of the company will not change.

Investment suggestion: as a global leading brand of household appliances, Haier has gradually released the benefits of China's digital transformation and high-end brand layout under the background of pressure on the cost side and repeated overseas epidemics, and realized the optimization of overseas product structure + supply chain + production efficiency, effectively driving the improvement of operation efficiency and profitability. At the same time, the strategic transformation of the company's Internet of things smart family has accelerated, the brand high-end + scenario + production construction has gradually entered the harvest period, and the overall development logic is clear. The Hong Kong share allotment will strengthen the consistency of interests between the listed company and the group. Other participants are also expected to provide strategic resources for the company's business development and help the company's long-term development. It is estimated that the net profit attributable to the parent company in 21-23 years is RMB 12.561/146.57/16.804 billion, and the current stock price corresponds to 22.60x/19.37x/16.89xpe in 21-23 years, maintaining the "buy" investment rating.

Risk warning: the price of raw materials rises; The expansion of overseas brands and categories is blocked; The epidemic situation is repeated, affecting sales, and the completion progress of placement is less than expected.

- Advertisment -