Xianhui technology to acquire Dongheng machinery into lithium battery module structure and ningde times deepen binding
Kichuang Board Daily (Beijing, reporter Guo Hui) news, new energy vehicle module /PACK equipment company Xianhui Technology (688155.SH) announced a major asset acquisition intention yesterday evening, intends to acquire 51% of ningde Dongheng Machinery Co., LTD. (hereinafter referred to as “Dongheng Machinery”) in cash form.The stock rose 9 per cent in the two trading days before the indicative announcement.Tianyan data show that Dongheng machinery was founded in 2014, the registered capital of 50 million yuan, the company insured more than 70 people.Up to now, Dongheng Machinery has no public financing dynamics. Its three shareholders are natural persons, including Lin Liju, the legal representative, and Shi Zenghui, the major shareholder and actual controller holding 70% of the shares of the company.According to the disclosure of the intention of the transaction plan, Xianhui technology is planning to acquire a certain share of the equity from the three shareholders.Dongheng Machinery is mainly engaged in lithium battery module structural parts (battery case, module /PACK case, etc.). It was selected as the “Specialized and special new” enterprise of Ningde city in 2018 and the excellent supplier of Ningde Era in 2019.Xianhui Technology is mainly engaged in intelligent automation equipment for new energy vehicles, and is also one of the important suppliers of Ningde Times.Zheshang Securities research newspaper believes that the acquisition of Dongheng Machinery means that Xianhui technology will cut into the structure of lithium battery module, and the layout of new products is expected to make a breakthrough.According to the company’s prospectus, It will officially enter the battery automation production line supply chain of Ningde era in 2019.Only in 2021, Xianhui Technology announced that it won the order of 570 million yuan of Ningde Times + Funeng in early January, and won the order of Ningde Times in May and July of the same year.In a recent survey by Wells Fargo Fund and other institutions, Xianhui technology said that since January 2021, it has disclosed a total of about 1.258 billion yuan in contracts and fixed-point notices signed with Ningde Times (excluding taxes).In 2021, due to the increase in orders, the overall supply of lithium equipment in the industry is in short supply. In addition, Xianhui technology was plagued by capacity bottlenecks before the launch, and the company started a high-speed capacity expansion.In the run-up to its IPO in 2020, Sewerwert raised 640 million yuan to build its Wuhan base to expand capacity (350 million yuan) and replenish its working capital (60 million yuan).The secretary of the company disclosed recently that its wuhan factory has been basically completed, and the office building is in the process of acceptance.In addition, Shineway technology also announced in January 2021 to invest in the construction of changsha base with over-raised funds. Currently, the expansion projects in Changsha and Shanghai are still in the process of application for construction.It is worth noting that due to the income speed lags behind the expansion rate, as well as the implementation of high equity incentives, Xianhui technology in the third quarter of 2021 profit losses, Q3 single quarterly revenue of 199 million yuan, a year-on-year increase of 131%, but the mother of net profit loss of 0.02 billion yuan.Market and industry people believe that the module /PACK line technical barrier is low, but with the gradual improvement of production line automation rate, Xianhui technology in intelligent automation equipment and industrial manufacturing data system and other aspects of the technical advantages will be more and more significant.As intelligent automation equipment is the core production equipment of the downstream battery factory, its automation degree and stability have become the key factors to determine the production efficiency and production cost of ningde Times and other downstream markets, so the customization ability and after-sales service requirements of product design schemes of Xianhui technology and other companies are getting higher and higher.Xianhui technology has said that customers attach great importance to the service ability and response speed of suppliers. After the acceptance of the project, the company will arrange special personnel for distribution, installation and debugging of products, timely feedback on the implementation effect of the project, and also provide staff training and other services to customers.And xianhui technology did not invest in ningde city before the establishment of any molecular companies.”Science and Technology Innovation Board Daily” today, the progress of the acquisition plan and the expected impact on the company’s capacity, called the office of the board of Directors of Xianhui Technology, the other party said that so far only disclosed the intention of the acquisition, please pay attention to the subsequent developments.Zhejiang Securities machinery team research point of view, Dongheng mechanical lithium battery structure is expected to produce upstream and downstream collaboration with Xianhui technology new energy vehicle automation equipment, further improve the company’s capacity, but also expand customers, strengthen the new energy vehicle equipment, products of the dual-wheel drive development strategy.It is worth noting that Dongheng machinery has a number of wholly-owned subsidiaries related to energy technology in Ningde and Liyang.As is known to all, Ningde and Liyang have formed an important domestic power battery industrial cluster due to the factory investment of Ningde Times and other companies.Take Liyang as an example, in 2021, more than 30 power battery industry chain enterprises will be introduced, and jiangsu Times, SAIC times, Putailai and other well-known domestic power battery leading enterprises will gather together.Among them, in June 2021, ningde Times and SAIC Group with a total investment of 12 billion advanced power battery industrialization project (phase ii) in Liyang, is expected to be completed in 2024.In Ningde, Fujian province, Ningde Times has led the local formation of a hundred billion lithium new energy industry cluster. In 2021, the industrial added value of Ningde increased by 92.1% year on year.In the past two months, Ningde times has invested 68 billion yuan to expand production, among which the latest announcement disclosed on the evening of February 2 this year shows that it will also spend 29 billion yuan to build three new power battery and energy storage battery projects.According to soochow Securities Research Report, the value of module line +PACK line is positively correlated with the degree of automation. It is roughly estimated that the global market space of module line +PACK line will reach 95.1 billion yuan in 2021-2024 under the assumption of high automation rate.As a high-quality enterprise of intelligent equipment of new energy vehicles, Xianhui Technology accounted for 74% of the annual revenue of intelligent automation equipment of new energy vehicles in 2020, and it is estimated that the orders of this business accounted for more than 90% in 2021.