\u3000\u3000 Zhejiang Dun'An Artificial Environment Co.Ltd(002011) (002011)
Event: on January 14, 2022, the company issued the acquisition report. Gree will hold Zhejiang Dun'An Artificial Environment Co.Ltd(002011) 410 million shares in total, accounting for 38.78% of the total share capital by subscribing for the company's shares and non-public offering shares held by Dunan Seiko. The acquisition has passed the review of the Gree Electric Appliances Inc.Of Zhuhai(000651) board of directors and the debt Committee of Dunan holding financial institution. This transfer still needs to pass the antitrust review.
Comments:
The acquisition has progressed steadily, and Gree's business collaboration has great prospects. The due diligence at Gree level has been completed and the project is progressing steadily. Dunan and Gree have horizontal competition in commercial, special air conditioning and other businesses. Gree promises to solve it within five years of acquisition by means of M & A and reorganization, asset disposal, equity transfer, business operation entrustment, equity entrustment or giving new business opportunities to Zhejiang Dun'An Artificial Environment Co.Ltd(002011) and its controlled subsidiaries, that is, it will be placed or placed in favor of the interests of both parties. Under the same conditions, Gree and its subsidiaries will also give priority to Zhejiang Dun'An Artificial Environment Co.Ltd(002011) if there are interbank business opportunities in the future, so as to accelerate the development of the refrigeration sector of the company.
The operation inflection point is clear and firmly optimistic about long-term development. After the share transfer and fixed increase, the company's asset liability structure will be effectively improved. The company will develop together with Gree to improve the core competitiveness and industry status of the company's main refrigeration industry; At the same time, through Gree's industrial status, capital and resources, the company can effectively improve the competitiveness of the company's new energy vehicle thermal management business, and the threshold of vehicle electronic expansion valve is high. In the future, it is expected to follow the household refrigeration pattern, form the duopoly of Sanhua and Dunan China, improve the Dunan thermal management product line, and increase the proportion of heat pump models, which will bring significant industrial expansion and single vehicle value, The company has huge development space.
Investment suggestion and profit forecast: from the perspective of valuation, the company's share price will be corrected in place in the short term, corresponding to the 22-year 20x valuation, with a high margin of safety. We believe that the double track development and growth space of the company's refrigeration + heat management system is huge. It is estimated that the company's revenue in the 21st-23rd year will be 93.83/108.72/12.518 billion yuan, a year-on-year increase of + 27.1 / + 15.9 / + 15.1%; The net profit attributable to the parent company was 420 / 548 / 688 million yuan, a year-on-year increase of + 142.0 / 30.6 / 25.5%, corresponding to 29.41/22.52/17.94 times of PE. Maintain the "buy" rating.
Risk factors: the business development of new energy thermal management system is less than expected, the consumption of downstream civil air conditioning is less than expected, the promotion of the company's commercial business is less than expected, and the bid winning of nuclear power project is less than expected
