Chengfei integrated bottom of the acquisition of vehicle design created aircraft carrier

- Jan 07, 2017-

This week the market fell again, especially on March 28, in the financial stocks suffered bad fall more than 6% under the influence of the market once again hit a new low since the Spring Festival, the index line approximation 2230 line, affected this week Lithium focus on individual stocks also appeared relatively deep adjustment, but in early March we are concerned about the new Chouzhou contrarian rose more than 16.16% contrarian at the same time, Chengfei integration also contrarian upside, once the daily limit on Wednesday, Thursday in The broader market fell 65 points in the background, still strong red. In fact, this year, the integration of coke by the positive impact of restructuring, after three consecutive daily limit, it has been strong in the high sideways, short-term stage gains have more than 40% over the same period the Shanghai index fell 1.45% Significantly outperforming the Shanghai Composite Index more than 40 percentage points. (figure 1)





Cause Analysis


The reason for the success of CAC's continuous rise in the beginning of the year was mainly due to the announcement by the Company on January 12, 2013 that CAC will acquire 87.8618% equity interest in Shanghai Tongjie Technology through cash purchase and issue of shares. The market is highly recognized, that can produce synergies, thus opening daily limit trip.


Institute of Engineering lithium industry (GBII) that the acquisition of integrated into the flight with the McNair technology has the following benefits:


1) bottom of the acquisition, enjoy the future premium space. CIMIC's acquisition of J & J was in October 2012, when it was the most difficult time since the company was founded. Data show that with the Czech Republic, science and technology from 2006 has been in a high-speed growth stage, net profit from 11,396,600 in 2006 increased to 5 21.60 million in 2011, but in 2012 after two unsuccessful listing, the net Profits straight down, as of September 30, 2012, net profit of only 570.8 million, can be said to fall into the historical bottom. (figure 2)





It is also at this time, Chengfei integrated shot, and suddenly a sharp decline in performance in the context of the acquisition of the underlying company can grasp the initiative of bargaining, enjoy the future premium space. If in accordance with the 2011 up to 55 million net profit to the acquisition, then the cost of integration into the cost of how that would be a mere 6 million. In fact, with the Czech Republic, the performance of the decline in technology in 2012 is determined by many factors, but short-term behavior, the company's management for the recovery of future performance is full of confidence, and it is precisely because of this acquisition agreement with the Czech technology performance Made a commitment, with the Czech Republic and its technology companies and subordinate enterprises in 2013 to 2015, vehicle design and prototype carving business deducting non-recurring gains and losses attributable to the Czech technology shareholders all of the simulated net profit forecast were 38 million yuan, 4200 Million and 46 million yuan. In the event of failure to meet the agreed profits, the Company shall make cash compensation or share-based compensation with respect to the deficient portion. And this is with the McNair technology should enjoy the valuation level. It is not difficult to see that Cheng Fei integration with the Czech Republic when the technology downturn is a significant discount for the acquisition is expected to fully enjoy the future with the Czech Republic, the benefits of high-tech growth.

2) strong combination, creating a vehicle design aircraft carrier. As a leading enterprise in the domestic automobile design industry, we have more than 20 years' experience in automotive design engineering. We have a team of experienced and experienced automotive design engineers. Chengfei integration is recognized by the industry's four major auto parts die one of China's auto parts is the key enterprises die. The two sides will work together to open up the core components of the vehicle design and development to the vehicle design and development of the entire business chain, gathering both sides in their respective areas of technology R & D strengths, the development of cutting-edge technology products, creating domestic technology leader in automotive design full-service chain mode.


3) sharing of resources, establish a leading position. Chengfei integrated production of automotive mold products have been exported to the United States, Britain, Italy and other developed countries, and successfully become GM, Ford, Land Rover, Renault, Volvo and other international well-known car manufacturer partners! As a leader in the domestic vehicle design industry, the major customers of Jettech include FAW Car, Dongfeng Motor, Shanghai Automotive, Changan Automobile, Beiqi Holding, Great Wall Automobile, JAC, Beiqi, SEA, Haima Motor, Dongfengyu Security and other major domestic brands and some auto companies joint ventures. CIMC's acquisition of JITEC enables synergies from upstream and downstream business integration to accelerate the formation of the entire industry chain service capability and establish the industry leading position in core automotive suppliers. (Table 1)





4) help venture capital, the future is expected to reciprocate. Prior to this, with the Czech Republic, technology has twice listed crumble. As early as the beginning of 2006, its implementation of the purpose of the overseas listed red-chip design, but the listing did not take place; removal of red-chip structure, in order to catch up with the GEM listed on the morning train, with the Czech Republic again in 2009 And capital increase, but do not expect its GEM application was rejected. CAC into the acquisition of the acquisition, so trapped with the McNair technology Daichenxin letter, Beijing Bo Jin, Ningbo Huiya, Fujian Bingzhong, the East and many other venture capital firms to get out of opportunities. With the Czech Republic, there is a reason for the defeat is considered "equity complex." Information shows that Tongji with Czech Republic was a total of 51 shareholders, including 11 domestic legal person shareholders, 2 foreign legal person shareholders, 35 domestic natural person shareholders and 3 overseas natural person shareholders. This is obviously some people want to ride a ride, overnight riches, but the final dream come to nothing. The integration into the flight, whether it is for the background of the natural person or venture capital shareholders, is a timely act. More importantly, these backgrounds of natural persons and venture capital companies through private placement has become the integration of the shareholders of Cheng Fei, which become a community of interests, there is speculation the possibility of speculation.


Other highlights analysis


2012, China's new energy vehicle production 12552, while in 2011 the domestic sales of new energy vehicles to 8159, the overall sales compared to 2010, an increase of 60.36%. Obviously, in 2010 to new energy vehicles sales increased by more than 50%, but even so, away from China's new energy vehicle planning in the 2015 target to maintain the amount of 50 million is still far behind, which also means that the next Two or three years, the development of new energy vehicles or a qualitative leap, production and sales will enter the ultra-high-speed development stage. (image 3)





    According to the Institute of Engineering lithium industry research (GBII) survey, in 2012 the top ten power lithium battery output value is BYD, Tianjin power of God Myers, Hefei Guoxuan, Shenzhen Waterma, China Aviation Lithium, Zhejiang Wanxiang, Lee Dyne, Ningde New Energy, Henan Universal Purcell, Harbin Guangyu. China Aviation lithium potential in the top five in the future when the outbreak of new energy vehicles will enjoy the industry high-growth profits.


At the same time, the company began to actively prepare for war. (Luoyang) Co., Ltd. to be the State Grid Corporation of Zhejiang Province, Zhejiang Electric Power Company, Hangzhou municipal government to carry out strategic tripartite cooperation in Hangzhou within the framework of the implementation of 2 million (hereinafter referred to as the Company) Electric car private leasing projects, to take electric vehicles (bare car) lease and provide preferential charge for the basic mode of operation, car rental to consumers in Hangzhou. Has been restricting the development of domestic electric vehicles were two major obstacles to high cost and charging difficult, the Hangzhou model is expected to break through these two obstacles in one fell swoop, is expected to open the domestic electric vehicle development model precedent. Leasing model gave birth to a large number of battery needs, China Aviation lithium ready to go.


Business performance analysis


The total amount of integrated assets into the flying year after year, starting from around 645 million in 2009, increasing year by year, is now close to 3 billion, 4-year asset value close to 5 times, more rare is that during this period, asset-liability ratio are in a Low level, even if the peak in 2010, when its asset-liability ratio is less than 35%, while in 2011, 2012, asset-liability ratio but decreased to 25%, while the total assets rose sharply at the same time assets and liabilities The rate of decline, mainly due to the integration of CAC during the acquisition through the acquisition of CATIC Li-oriented lead, indicating that the company's management is good through capital operation bigger and stronger, in order to maximize the interests of shareholders. The company once again through the capital market operation with the acquisition of Czech technology, is expected to once again the company's total assets to a new level. (Figure 4)





risk warning


1) Li-ion battery capacity of the market risk. Lithium-ion battery as a high-tech products, the application market is still in the cultivation stage, such as electric buses and other important target market is still in the government-driven demonstration application stage, can not accurately predict the commercial maturity cycle and target market capacity.


2) After the development of the group model, the risk of the control of investment enterprises increased. In 2011 the company completed the non-public offering of shares of China Aviation Lithium-ion project, in 2013 to prepare additional private placement with the acquisition of technology, the company has gradually to the group direction, the performance of the subsidiary company's overall performance will have a greater impact. If you can not effectively control investment enterprises, the company's production and management will bring huge risks.


3) The private placement will make the company's share capital increase again, and the new shareholders are involved in venture capital companies and natural persons, after the time limit there will be relatively strong selling expectations, when the stock price will be formed A certain amount of pressure.


The future trend of the judge


Overall, the integration into the flight with the Czech Republic, the most difficult time when the acquisition is worthy of recognition, and the future is facing the same time with the Czech Republic, the performance of science and technology to restore growth and the lithium in the new energy field of heavy volume synergies, the two forces together, Chengfei integrated future performance of the continued growth can be expected, recently announced a substantial increase in performance in the first quarter is just a prelude. In the performance of sustained high growth can be expected to lead the company's share price is expected to continue to maintain the trend of shock rise