Zhejiang Wazam New Materials Co.Ltd(603186)
Public issuance of convertible corporate bonds
Credit rating report Shanghai brilliance credit rating & Investors Service Co., Ltd
summary
No. [new century debt review (2021) 010531]
Rating object: Zhejiang Wazam New Materials Co.Ltd(603186) publicly issued convertible corporate bonds
Subject credit rating: AA-
Rating outlook: stable
Debt credit rating AA + rating time: April 16, 2021
Planned issuance: no more than 570 million yuan (including)
Current issue: no more than 570 million yuan (included). Purpose: to supplement working capital and project investment
Duration: 6 years. Repayment method: paying interest once a year and repaying principal at maturity
Upgrading arrangement: Huali Group Co., Ltd. provides full unconditional and irrevocable joint and several liability guarantee
Main financial data and index rating point of view
Main advantages of the project from 2018 to 2020:
Monetary unit: RMB 100 million
Data of parent company: ⚫ The development environment of the industry is good. Zhejiang Wazam New Materials Co.Ltd(603186) the CCL bank's Monetary Fund 1.20 1.10 1.21 industry belongs to the industry encouraged and supported by China. With the development of China Power rigid debt 6.84 6.96 8.19 sub information manufacturing industry, superimposed with the demand for localization substitution, the owner's equity is 5.34 5.44 11.88
The net operating cash inflow is 0.67 0.55 0.37. The downstream demand of the copper clad laminate industry is strong, and the overall development environment of the industry is good.
Total assets 21.63 24.11 34.67
Total liabilities 14.70 16.58 20.01 ⚫ Smooth financing channels. As a listed company, Zhejiang Wazam New Materials Co.Ltd(603186) direct rigid debt 10.08 11.54 13.51 and indirect financing channels are relatively unblocked. In 2020, the company completed the non-public offering of shares with owner's equity 6.93 7.53 14.66, and the company's equity capital strength obtained operating income 17.14 20.26 22.84
Net profit increased significantly from 0.73 to 1.03 to 1.26.
Net operating cash inflow 0.92 1.25 1.65
EBITDA 1.39 2.10 2.34 ⚫ The controlling shareholders have strong support. Zhejiang Wazam New Materials Co.Ltd(603186) holding stock Donghua asset liability ratio [%] 67.97 68.78 57.72 Li group has strong support for the company. In addition to providing equity capital and rigid debt 68.70 65.21 108.49 for this bond for full unconditional irrevocable joint and several liability guarantee, Ratio [%] in 2020, it also subscribed for non-public shares of some companies. Current ratio [%] 93.47 94.29 118.85
Cash ratio [%] 13.48 11.78 32.23
Interest cover ratio [times] 3.01 3.74 4.95
Return on net assets [%] 10.50 14.19 11.36 main risks:
Net operating cash inflow and 6.24 8.01 9.02 ⚫ The operating link accounts for a large amount of money. Zhejiang Wazam New Materials Co.Ltd(603186) ratio of receivables to current liabilities [%]
The net inflow of non financing cash is -6.28 -2.29 -22.71, and the funds occupied by the operating links have a certain pressure on its capital turnover and a ratio of [%] to the total liabilities.
EBITDA / interest expense [times] 4.19 5.69 6.90
EBITDA / rigid debt [times] 0.14 0.19 0.19 ⚫ The pressure of product upgrading is high. China's high-end CCL products are mainly imported in 2017, 2018 and 2019 according to the guarantor's data. The market segments are mainly dominated by foreign manufacturers. China's total assets are 178.70, 187.62 and 197.93
The owner's equity is 60.72 64.89 70.11. The enterprise's products urgently need to break through to the medium and high-end, and will continue to face the investment pressure of R & D operating income of 223.48 253.22 274.72.
Net profit 5.48 5.84 7.35
Note: according to Zhejiang Wazam New Materials Co.Ltd(603186) audited financial data of 2018-2020 ⚫ The price of raw materials has risen sharply. Raw materials are included in the cost of copper clad laminates. According to the data of the guarantor, the audited financial figures of Huali group accounted for a large proportion in 2017-2019. Since the second half of 2020, the main data of copper clad laminates have been sorted and calculated. The market price of materials has risen sharply, and enterprises in the industry continue to face greater cost pressure.
Analyst ⚫ Risks of investment and capacity release of the proposed project. Zhejiang Wazam New Materials Co.Ltd(603186) proposed new Chen Siyang [email protected]. The Zhuhai high-grade copper clad laminate project has a large investment scale, and the company is Li Yi [email protected]. It will face greater investment pressure and risk of capacity release.
Tel：(021) 63501349 Fax: (021)63500872
14F, Huasheng Building, 398 Hankou Road, Shanghai
http://www.shxsj.com.
Future outlook through the analysis of Zhejiang Wazam New Materials Co.Ltd(603186) and the main credit risk elements of the bonds issued, the rating agency gives Zhejiang Wazam New Materials Co.Ltd(603186) AA subject credit rating, and the rating outlook is stable; We believe that the security of this bond is very high, and give this bond AA + credit rating.
Shanghai new century credit evaluation and Investment Service Co., Ltd
Zhejiang Wazam New Materials Co.Ltd(603186)
Public issuance of convertible corporate bonds
Credit Rating Report
survey
1. Overview of the issuer
Zhejiang Wazam New Materials Co.Ltd(603186) (hereinafter referred to as " Zhejiang Wazam New Materials Co.Ltd(603186) ", "the company" or "the company"), formerly known as Hangzhou Xinsheng Electronic Materials Co., Ltd., was established on March 6, 2003. On October 29, 2010, the company was changed into a joint stock limited company with a registered capital of 82 million yuan, of which Huali Group Co., Ltd. (hereinafter referred to as "Huali group") holds 67.85% and is the controlling shareholder of the company. According to the proposal on initial public offering and listing of the company deliberated and adopted at the first extraordinary general meeting of shareholders in 2014 and approved by the reply on approving Zhejiang Wazam New Materials Co.Ltd(603186) initial public offering of shares (zjxk [2016] No. 2858) of China Securities Regulatory Commission, the company publicly issued 32350000 RMB ordinary shares to the public, The par value of each share is RMB 1, and the registered capital is increased by RMB 32.35 million. The company's shares were listed and traded on Shanghai Stock Exchange on January 3, 2017. After capital increase, equity incentive and non-public offering of shares, the company's share capital has increased to 142 million shares by the end of 2020, of which Huali group holds 40.06% and is still the controlling shareholder of the company; The actual controller of the company is Wang Licheng, a natural person.
The company is mainly engaged in the R & D, production and sales of copper clad laminate materials, functional composites and composites for transportation and logistics. It is one of the more competitive manufacturers in China's copper clad laminate market. 2. Debt profile
(1) Bond terms
After deliberation and approval of the 10th meeting of the 4th board of directors held on January 20, 2021, the 1st extraordinary general meeting of shareholders held on February 5, 2021, the 12th meeting of the 4th board of directors held on March 24, 2021 and the 2020 annual general meeting of shareholders, the company plans to apply for issuing convertible corporate bonds of no more than 570 million yuan with a term of 6 years, The specific issuance scale shall be determined by the board of directors authorized by the general meeting of shareholders within the above limit. The convertible corporate bonds and A-share shares to be converted in the future will be listed on the Shanghai Stock Exchange.
Figure 1 Overview of the bonds to be issued
Bond Name: Zhejiang Wazam New Materials Co.Ltd(603186) publicly issued convertible corporate bonds
Total issuance scale: no more than 570 million yuan (including)
Current issue scale: no more than 570 million yuan (including)
Term of this bond: 6 years from the date of issuance
The determination method of the coupon rate of the convertible corporate bonds issued this time and the final interest rate level of each interest bearing year shall be proposed to the bond interest rate: the general meeting of shareholders of the company authorizes the board of directors of the company to negotiate and determine with the sponsor (lead underwriter) according to national policies, market conditions and specific conditions of the company before issuance. If the interest rate of bank deposits is adjusted before the issuance of convertible bonds, the general meeting of shareholders authorizes the board of directors to adjust the coupon rate accordingly.
Pricing method: issue at par value
Repayment method: the convertible corporate bonds issued this time adopt the interest payment method of paying interest once a year, and return the principal and the interest of the last interest bearing year when due
Object of exchange: Zhejiang Wazam New Materials Co.Ltd(603186) A shares (603186. SH)
Conversion period: from the first trading day after the expiration of six months from the date of issuance to the maturity date of convertible corporate bonds
1. This issue
