Weichai "fishing" organization: there will be surprises to look forward to in three years.
Weichai "fishing" organization: there will be surprises to look forward to in three years.
China Construction machinery information
Guide: Net profit fell by nearly 50% in 2012, and Weichai Power is in a difficult situation. However, under the strategic planning of Shandong heavy industry group, a series of capital operations of the company dazzled the market last year: on August 28, the company officially owned 75% of the equity of Italian Faraday company and the world's largest luxury yacht manufacturer; Last year
in 2012, the net profit fell by nearly 50%, and Weichai Power was in a difficult situation. However, under the strategic planning of Shandong heavy industry group, a series of capital operations of the company dazzled the market last year: on August 28, the company officially owned 75% of the equity of Italian Faraday company and the world's largest luxury yacht manufacturer; At the end of last year, the company invested 738million euros in Kaiao, making the largest direct investment of Chinese enterprises in Germany so far. During this period, Weichai Power successively transferred the equity of Futong automotive air conditioner, Dongfeng off-road and Xigang new energy. Even so, "messy" is still the evaluation of securities researchers on the internal asset structure of the company
it was learned that at a recent exchange meeting, Weichai Power executives revealed that "at the right time and in the right way, the company will carry out a satisfactory restructuring of the capital market, giving everyone a surprise in three years"
Board Secretary Dai Lixin responded with "this is a problem considered at the group level, and the company does not understand it". Familiar securities researchers said bluntly, "with Weichai's current size, any asset portfolio is difficult to generate enough attraction to market funds."
wind restructuring "gives you a surprise after three years"
as an important carrier for Shandong Province to expand and strengthen the automotive industry, Shandong heavy industry is thriving in the capital market, with four listed companies, Weichai Power, Weichai heavy machinery, Shantui shares and Yaxing bus
in recent years, Shandong heavy industry group has focused on external expansion, but internal integration has been silent. The only thing that made investors a little restless was an announcement by Weichai Power on September 14th, 2011. The company was identified as the only operation integration platform for the engine business of automobile and construction machinery under Shandong heavy industry, and there has been no further discussion since then
it was learned that at a recent exchange meeting, Weichai Power executives revealed that "the resources of Shandong heavy industry and Weichai group have been in the hands of the company. At the right time and in the right way, we will carry out a satisfactory restructuring of the capital market. Three years later, we will have a surprise. The rest are core secrets."
after inquiring about the details of the restructuring, Dai Lixin, the company's secretary, responded with "this is a problem considered at the group level, and we don't know yet"
in fact, the restructuring suspense thrown out by the company has already attracted extensive speculation from institutional researchers. A researcher who has been tracking the company for a long time in Shanghai told golden securities, "the asset structure within Weichai Power and between several companies of Shandong heavy industry is indeed a little messy."
Weichai Power has always been self-sustaining with its complete heavy truck "gold industrial chain", which mainly involves four enterprises: Weichai Power, Shaanxi heavy truck, Shaanxi fast gear, and hande axle. However, the last three enterprises are actually 49% owned by Shaanxi SASAC, and Weichai Power holds 51%
the above researchers said frankly that both fast and hande are leading enterprises in the industry. Because the control power in Weichai Power has only theoretical advantages, the so-called "gold industry chain" is not solid. Therefore, in addition to hunting around, Weichai Power has made efforts to strive for more shareholding of the above three enterprises. "However, it is difficult to achieve equity expansion, and there is a game with Shaanxi."
the market guesses that Linde hydraulic "remarried" Shantui
Shandong heavy industry can indeed play a bigger game
on the evening of March 7, Weichai Power announced that it planned to use no more than 400million euros to subscribe for the option of German Kaiao group, increasing its shareholding to 33.3%. In September last year, Weichai Power invested 738million euros in Kaiao, of which 467million euros will acquire 25% of the shares of Kaiao through capital increase, and 271million euros will acquire 70% of the equity of Linde hydraulic business under Kaiao
it was learned that at this meeting, senior executives of the company revealed that Kaiao group decided to go public in June. After the listing, Goldman Sachs and KKR will withdraw from the list of Kaiao shareholders. At that time, the company will become the largest shareholder and strive to achieve consolidated statements by 2014. In this regard, Dai Lixin confirmed that "Kaiao group will be listed locally in Germany."
insiders know that the most competitive asset of Kaiao is Linde hydraulic, because "those who get hydraulic parts win the world"
global hydraulic systems have long been monopolized by Bosch Rexroth of Germany, Eaton of the United States and Kawasaki of Japan, especially high-end hydraulic systems such as hydraulic excavators. Linde hydraulic is one of the few companies that mainly develops hydraulic systems of construction machinery, and its production and manufacturing technology of hydraulic components is also at the top of the world. Weichai Power executives have privately said, "the combination of the two sides brings complementary advantages. The engine needed by Kaiao forklift can be provided by Weichai, and the progressiveness of Kaiao financial structure is the learning direction of Weichai."
but what puzzled the Shanghai researchers was that Linde hydraulic was the most widely used in excavators, only because the price was too high in the early stage and it failed to open the market. In other words, Weichai Power, which focuses on the manufacture of heavy-duty engines, is not highly consistent with Linde's hydraulic business structure, but Shantui shares, which is good at excavators. "If Kaiao and Weichai Power are consolidated in 2014, and cultivated for another two or three years, and installed into Shantui shares in 2014, this asset can be revitalized."
growth path internal integration and external mergers and acquisitions
it was learned that Keyao group was insolvent in 2011, with a net loss of 93 million euros; In the first half of 2012, it turned losses into profits, realized a net profit of 25.7 million euros, and is expected to make profits for the whole year. The operating procedures of Linde hydraulic 201 mortar tensile testing machine have 1-year revenue and EBIT of 276 million euros and 39 million euros respectively. Compared with Weichai Power's net profit of nearly 3 billion yuan in 2012, Germany's asset contribution is limited
however, according to tan Xuguang, chairman of Shandong heavy industry group, Weichai Power will rely on Linde hydraulic to establish a new company in China and invest in the construction of China's medium and high-end hydraulic R & D and manufacturing base in Weifang, Shandong Province. The company revealed that all the employees stripped by Linde from Kaiao will enter the new company in Weichai, making full use of the untapped market potential to enter new markets, especially the high growth Asian market
the Shanghai researcher said to him that if Lin De married Shantui, in order to compensate Weichai Power, would Shandong heavy industry dare to play more? Weichai Power shares the same business with Weichai Heavy Machinery Co., Ltd., and the related party transactions and personnel flows are also frequent. Can we follow the example of Guangzhou Pharmaceutical and Baiyunshan Pharmaceutical to absorb and merge
in response, people close to the company responded, "Digital cement pressure testing machine is no longer people's choice. Mr. Tan has always been firm in his position that Linde hydraulic business will be part of Weichai Power's strategic emerging business and will not be stripped out in the future. Moreover, he proposed that the analysis and testing of the impact on the accuracy of cement strength test results will be carried out soon. The Chinese factory built by Yiming xialongyan product quality supervision and inspection will achieve a sales revenue of 10billion yuan in five years, compared with Weichai's last year The main revenue is 48billion yuan, which shows Mr. Tan's ambition. "
another researcher from Beijing securities firm doesn't agree with this, "in any case, compared with Weichai Power, Shantui shares and Weichai heavy machinery have smaller profitable assets and small growth space, and mainstream funds don't necessarily appreciate it. Moreover, three years is a little far away."
researchers from Beijing securities companies believe that Weichai Power's domestic development path should still strive to improve its market share and increase technology research and development. However, due to the slowdown in economic growth, the decline in investment and other factors, it is not realistic to expect this to return to the peak in 2010. In view of the company's stable profitability and sufficient cash flow, it may be the company's aspiration to become a multinational enterprise with the help of international acquisitions
it is worth mentioning that Weichai Power has high confidence in its endogenous growth. In the 2012 annual report, the company estimated that this year's sales revenue was about 55.3 billion yuan, an increase of about 15% year-on-year, while the company's sales revenue in 2012 fell by nearly 20%. Executives say their confidence that the growth rate of heavy trucks may be 5%, and large tractors and logistics vehicles will rise; In particular, exports increased by 50% in 2012, and the growth rate will be faster in the future, becoming another "carriage" driving performance growth
Copyright © 2011 JIN SHI