Category: Money tips Release Date: 2007-02-08
Source: GF Securities Author: Tension
Stock reform process, drawing to a close, "tradable" era will become a reality. Full circulation in the context of the capital market will undergo a fundamental change in the pattern around the right to compete for a listed company holding the securities market will also present a new perspective of equity culture and value judgments.
Full Circulation bring revaluation
In the tradable expected, the state-owned holding power may be an unprecedented challenge from the capital markets. From the view of the recent series of cases, Sinopec shares changed every move can bring to the market reverie, creating opportunities, which in essence is a policy-led M & A behavior; Baosteel acquired Handan Iron and Steel, Shaoguan Iron & Steel news for the human body will go to the magic of the capital, while the acquisition of G 31 and Xugongkeji topic is set off a fierce battle on the capital markets; foreign acquisition of subject matter has also been a cause of concern about the high, such as Lafarge acquisition of Sichuan Shuangma , GE entered the deep development.
With the development of M & A market will lead to a number of potential investment opportunities in listed companies have been excavated. In the process of revaluation of assets of listed companies balance sheet items have a re-assessment opportunities, such as real estate company real estate revaluation, a number of monopolies resources, scarce resources, monopolize technologies, brand's long-term value of is also facing reassessment opportunities.
Revaluation will also focus on control of the game became very intense, controlling shareholders, circulation shareholders, company executives and other interests of all parties will be in the secondary market through mergers and acquisitions, holding the right to defend the war, was re-division of equity incentive . In Yunnan Baiyao, for example, in September 2004, China's Pharmaceutical Industry Ltd. for 750 million yuan from the Yunnan Province SASAC Pharmaceutical Group to acquire 50% stake in clouds. In early 2006, China's Pharmaceutical Industry Co., Ltd. to withdraw its 50% stake owned by the SASAC back a 7.5-billion investment. At this point, the SASAC cloud Pharmaceutical Group, a wholly-owned, while the cloud Pharmaceutical Group has a 51.95 percent stake in Yunnan Baiyao to Yunnanbaiyao July 7, 2006 closing price of 30.88 yuan, the SAC price of 7.5 billion won 25.9 billion in the stock market value of the circulation, direct income reached 18.4 billion yuan, up 245% excess rate of return. From the capital value of the point of view, the SASAC in the stock reform carried out prior to Yunnanbaiyao equity holdings, will make the share of tradable shares after the tremendous value-added benefits.
Premium is behind the growth potential of enterprises
In fact, the post-revaluation high premium is inevitable, this phenomenon in the recent case of frequent mergers and acquisitions. October 26, 2005 issued a public notice of the Xugongkeji by Xugong investments on behalf of the Carlyle tender offer, price 2.24 yuan per share for non-tradable shares, the outstanding shares of 3.11 yuan per share, per share by the end of 2005 Xugongkeji net assets is 1.95 yuan.
In January 2006, beer giant InBev of 58 billion yuan to acquire Fujian Sedrin, a premium of more than 10-fold.
February 28, 2006, the world's second largest steel giant Arcelor and Laiwu Steel Group signed an agreement to 5.888 yuan per share price of the transferee Laiwu Steel Group holds 38.41% stake in Laiwu Steel, the price has exceeded the agreement was signed on the secondary market price.
March 7, 2006, foreign HolchinB.V. Higher than the market price per share offer for 120% stake in Huaxin Cement to buy.
The high premium on foreign mergers and acquisitions of listed companies is not only the opportunity to revaluation, but also means that the value of its controlling stake to re-judge.
For investment in terms of foreign mergers and acquisitions case is not important, it is important for investors to re-examine the core of fundamental values. Along with the deepening of economic integration, China had a certain market power, brand strength and distribution channels the value of corporate mergers and acquisitions will be increasingly subject to international industrial capital control regimes, including cement, chemicals, medicine, beer, steel, agriculture, etc., industry is facing tremendous growth potential in market demand. Compared with the foreign mature markets, emerging Chinese market is clearly more attractive, while the generally low stock prices apparently did not fully reflect the advantages of the company's long-term investment value. Longer Yunnanbaiyao, for example, Yunnanbaiyao of capsules and powder, is currently China's only 3 recipes top secret, classified as a protected species in traditional Chinese medicine. In recent years, the company increasingly rich product line, and has prostate drugs, cardiovascular drugs, anticancer drugs and a series of botanical reserves. With the Yunnanbaiyao in the next few years, sustained growth, large shareholders will no doubt share more excess revenue. To regain control of the SASAC, also shows that its long-term optimistic about the company's growth prospects.
In the tradable background, regardless of the value of equity of static or dynamic value will be increased dramatically. Full circulation will result in the value of corporate shares of listed companies, a general increase in the original, and then taking into account the excellent potential for future growth of listed companies, holding the real value of a higher power. In particular, the development prospects of those good companies with high brand value, large holdings of equity shareholders, the conduct will not only help to obtain tradable shares after the revaluation of a premium, but also will receive the company's future growth in long-term gains.
