Category: Money tips Release Date: 2007-06-02
The company announced private placement announcement. Company January 28, 2007 Announcement additional 400 million shares, issuance targeted at China Shipbuilding Group (controlling shareholder, holding 53.27% stake in the company), CITIC Group, Baosteel Group, China Shipbuilding financial companies, Shanghai Electric, China Life Insurance, social security funds and other large state-owned enterprises. China Shipbuilding Group, in which the number of shares outstanding of this issue does not exceed 59% of the total (2.36 million shares), the China Shipbuilding Group, other than the number of issued shares of large state-owned enterprises does not exceed the number issued 41% (164 million shares). The issue subscription method for assets and cash to subscribe for the subscription of two parts, of which China Shipbuilding Group, in order to subscribe for the assets of not less than the total of this issue for 59%, Baosteel and Shanghai Electric in order to subscribe for not less than total assets, the total amount of this issue 16%, and the rest by the Baosteel Group, China Life, China and ship finance, CITIC Group, and other cash subscription.
China Shipbuilding Group's high-quality assets into the company. China Shipbuilding Group, the injection of assets of 66.66% stake in Shanghai Waigaoqiao Shipbuilding Corporation, China Shipbuilding Chengxi 100% stake in the ship repairing and ship voyage Guangzhou Wenchong Ship Engineering Company 54% of the equity; Baosteel and Shanghai Electric of the Hudong heavy machinery into the Waigaoqiao Shipbuilding Corporation, 16.67% of the shares, therefore, after the issuance of 100% stake in the Waigaoqiao Shipbuilding Corporation, to enter Hudong Heavy.
Additional 3.0 billion project to raise cash. The additional assessed value of the assets of Hudong Heavy subscription of 90 million, additional price of 30 yuan / share, and not less than the bulletin board of directors has 20 trading day average share of 90%, or 28.23 yuan. In addition to China Shipbuilding Group, Baosteel Group, Shanghai Electric in order to subscribe for part of the assets, this time the non-public offering of cash to subscribe for new shares is expected to raise some cash for about 30 billion yuan, mainly used in Waigaoqiao, Chengxi ship's technological transformation.
China Shipbuilding Group, listed as a whole was officially launched. The additional vessel may be regarded as a group as a whole listing program has been launched. China Shipbuilding Group, founded in July 1999, the registered capital of 6.374 billion yuan, is the central enterprise directly under the SASAC, the main industry of shipbuilding. 2006 shipbuilding 6.02 million tons, ranking third in the world, behind South Korea, Japan. To achieve the 2015 China became the world's No. 1 shipbuilding power in the ship group goals and the "531" plan, "Eleventh Five-Year" period, China Shipbuilding Group, Waigaoqiao, Changxing, Lair and other large ship repair projects and relevant supporting services investment of about 20 billion yuan. By 2010 shipbuilding, ship repairing, supporting and other business income will reach 60 billion yuan, accounting for group companies to 80% of civilian operations, accounting for the total enterprise group 2 / 3 or more.
Waigaoqiao - China's largest and most modern shipbuilding enterprise. Waigaoqiao registered capital of 1.32 billion, is the largest and most modern shipbuilding enterprise, the annual shipbuilding capacity of 2.5 million dwt, three, after completion of the project, the annual shipbuilding capacity will increase to 3.4 million dwt. Waigaoqiao Shipbuilding could be the construction of 10 million tonnes Capesize bulk carrier, Aphra-type tankers, but can also build 20 million DWT and above VLCC, FPSO and offshore drilling platforms, marine engineering, shipbuilding in 2006 amounted to 300 million dwt and above, representing China Shipbuilding Group's shipbuilding tonnage by 50%. As of the end of October 2006, Waigaoqiao Shipbuilding total assets of 10.844 billion yuan, net assets of 2.154 billion yuan, the main business income of 5.607 billion yuan, net profit of 708 million yuan, net capital gains rate as high as 32.87 percent, far higher than the Hudong Heavy Machinery's net return on assets (13.06%), full-year net profit is expected to reach 885 million yuan.
Cheng West Shipyard - China's ship repair industry leader in the main force. Cheng West Shipyard registered capital of 2 billion yuan, China Shipbuilding Group's major ship repair company, is a leader in China's ship repair industry, the main force, with 10 million deadweight tons, 8 million deadweight tons, 3 million deadweight tons, 1.5 million dwt of a floating dock, with a total capacity of 225,000 dwt dock. As of the end of October 2006, Cheng West, the total assets of 2.494 billion yuan shipyards, net assets of 531 millions, and main business income of 2.391 billion yuan, net profit of 237 million, net assets yield 44.63 percent, also much higher than the Hudong re - machine net assets rate of return.
Wen Chong Shipyard - China's largest ship repair base in the South. Wen Chong Shipyard registered capital of 641 million yuan, the company has 40 years of experience in transmission repair, is China's earliest foreign ships bearing repair Shipyard in one of China's largest ship repair base in the South, with 15 million deadweight tons, 1.5 million dwt Dry boat Tungsten each one, with a total capacity of 165,000 dwt dock, in the Lair to be building 30 new million dwt, 20 million dwt vessel tungsten each one dry. As of the end of October 2006, voyage Wenchong total assets was 8.45 billion yuan, net assets of 747 million yuan, the main business income of 444 million, net profit of 106 million, net capital gains rate of 14.19%.
Of assets can be injected into a large-scale follow-up period. The additional, China Shipbuilding Group's main business of its core products for civilian use, including large-scale shipbuilding operations, ship repair business into Hudong Heavy, the core products for civilian use to achieve the manufacture, repair, with the three major business integration, to form a complete industrial chain, so that newly listed companies were initially formed the core of civilian Shipbuilding Group, listed on the main platform for industry as a whole. In addition, injection can also be resolved through asset Hudong Heavy Machinery and the China Shipbuilding Group's related party transactions between. There's Hudong-Zhonghua Shipbuilding, Jiangnan Shipyard, Shanghai Shipyard, Huangpu Shipyard and other large shipbuilding enterprises, the issuance of the assets for follow-up into a large-scale open room for imagination.
After the performance of double injection of assets. Suppose Waigaoqiao, Chengxi ship, voyage Wenchong equity January 1, 2006 into the Hudong Heavy, the 2006 net assets of 1.2 billion yuan to 132 billion yuan, net profit of 250 million yuan to 15 billion, earnings per share from 1 yuan / share to 2.3 yuan / share, net asset per share from 4.5 yuan / share increased to 19 yuan / share about the net capital gains rate from 21% to 12% or so.
Earnings forecasts and investment advice. Taking into account the developing trend of shipbuilding industry in 2007 and Waigaoqiao, Chengxi ship, voyage Wen Chong's own business development, we expected that the three companies in 2007 to bring the interests of the company's net profits were 10.53 billion yuan, 3.38 billion yuan, 0.82 billion yuan, total 1472 million. Consider the company's additional 400 million shares, equity expansion of 152.35 percent, the company 2006,2007,2008-year diluted earnings per share was 2.26 yuan, 2.66 yuan, 3.40 yuan, up 1030%, 17.70%, 27.82%. In view of the company in the domestic marine diesel engine industry leading position and high quality assets into the future prospects, we are 35-40 times the company's P / E valuation, the company's target price of 93.10-106.40 yuan is now undervalued 165.11%, investment advice "buy."
