The home appliance industry used to be a frequent market for white horse stocks. Nowadays, the demand for consumption upgrades in the market is growing. The home appliance companies in the A-share market have also opened up the optimization of resource allocation, the integration of scale and technology.
Recently, Midea Group Co., Ltd. (hereinafter referred to as 'Mei Group', 000333.SZ) and Wuxi Little Swan Co., Ltd. (hereinafter referred to as 'Little Swan', 000418.SZ) also issued an announcement, announced the reorganization and suspension.
Regarding the reorganization, neither the Midea Group nor Little Swan disclosed more details. It is worth noting that, up to now, Midea Group has directly and indirectly held 52.67% of the shares of Little Swan A and Little Swan B, which is its controlling shareholder. At the same time, the chairman of the US Group, the legal representative Fang Hongbo also serves as the chairman and legal representative of Little Swan A.
The same is the blue chip star stocks in the A-share market. The combination of the two will inevitably lead to strong attention in the capital market. In addition, both parties have not disclosed the direction of reorganization, and the motives have added a mysterious color to this 100 billion-level action. .
From the perspective of market capitalization, why does Midea Group want to buy Little Swan with a market value of only 1/10? How does this restructuring affect the US group and Little Swan? What is the strategic intention behind it? What is the impact of the industry pattern?
On such issues, the "Investor News" reporter contacted the US group and Little Swan respectively, but as of press time, the company level did not answer.
The market value is actually 10 times different
Although the two major power giants in the Yangtze River Delta and the Pearl River Delta have long been victorious in their eyes, no one can say their fate 20 years ago.
In 1968, the American group was born in Shunde, China, and the Little Swan, which was founded in Wuxi, Jiangsu Province in 1958. Both companies were the leaders of private enterprises after the reform and opening up, and they are in the market.
Twenty years ago, Midea Group ranked 11th in "Most Valuable Brands in 1999", and Little Swan only differed by two; 20 years later, in "The Most Valuable Brands in 2018", Midea ranked in the category of technology home appliances. First, the little swan has long since disappeared.
Before the suspension, the market value of Midea Group and Little Swan reached 267.065 billion yuan and 29.411 billion yuan respectively, totaling nearly 300 billion yuan. This nearly 300 billion market capitalization restructuring will naturally attract attention from all parties in the capital market.
In February 2008, Midea Electric won the competition with Sichuan Changhong, and acquired 24.01% stake in Little Swan for 1.68 billion yuan, becoming the new major shareholder of Little Swan. At that time, Little Swan ranked second in the domestic washing machine industry. The Midea Group absorbed the listing of the US-listed electric appliances, and the major shareholder of Little Swan also became a US group. Since then, Midea Group has also increased its shareholding in Little Swan to 52.67% through partial tender offer, which controls the company's absolute controlling interest.
Washing machine business integration?
Little Swan specializes in washing machines, and Midea Group's electrical business is more diverse. The two companies are planning again and again. Will the washing machine business be integrated? This will not allow the outside world to generate various speculations. From half a year to the first half of 2018, Little Swan's operating income was 3.998 billion yuan, 4.974 billion yuan, 6.102 billion yuan, 7.985 billion yuan, 10.568 billion yuan and 12.057 billion yuan, up 28.92%, 24.41%, 22.67%. 30.86%, 32.35% and 14.09%; net profit was 236 million yuan, 350 million yuan, 499 million yuan, 665 million yuan, 833 million yuan and 1.003 billion yuan, up 2.19%, 43.17%, 36.14%, 34.86% , 25.95% and 23.31%.
From the perspective of the growth rate of operating income and net profit, the growth rate of Little Swan has been declining in the past three years, and the performance growth has been weak.
According to the regulations on the management of major assets reorganization of domestic listed companies, the net amount of assets purchased and sold must reach 50% of the listed company's consolidated financial statements in terms of total assets, revenue and net assets. No matter which indicator the little swan comes from. It is difficult to touch the 50% standard of the US group.
Therefore, many people in the industry believe that this 'major asset restructuring' is more likely to be reorganized around Little Swan's assets.
'Little Swan is a washing machine listed company, but Midea did not inject all the washing machine assets into Little Swan, showing that Little Swan's strength is not strong. If the overseas washing machine assets are injected into Little Swan listed companies, it can enhance the strength of Little Swan.' Liang Zhenpeng, an analyst at the home appliance industry, said in an interview with the reporter of Investor.
It is worth mentioning that in June 2016, Midea's acquisition of Toshiba white goods business, Toshiba's home appliance product line is rich, which covers the washing machine products. In June 2017, Midea acquired 80% of Clivet's shares. At that time, there was an analysis saying that no Excluding the future beauty of Clivet based on the possibility of deploying other home appliances industry in Europe, such as air conditioners, refrigerators, washing machines and other home appliances.
At the same time, the Midea Group has been adjusting for internal and external projects in the past two years. Last year, Midea's vacuum cleaner business was independent from the kitchen and electric power business unit, and a new business unit was established. In the first half of this year, Midea will also wash the three major products of the kitchen electric appliance business. The line was merged into the water heater business unit, the kitchen and hot water business unit was established, and the original kitchen electric business unit was renamed the microwave and oven business unit.
In an interview with reporters, Liang Zhenpeng said: 'How is the restructuring going? It is still difficult to predict. From my observation, it is very likely that Midea will integrate overseas assets and inject Toshiba’s washing machine parts and machine business into Little Swan. Listed companies, so that Little Swan is more professional in the field of washing machines, and is distinguished from other subsidiaries of Midea Group.'
Deutsche Bank said that the United States is unlikely to reverse the downward trend of Little Swan, and the two are unlikely to produce new synergies. On the one hand, Little Swan has been absolutely controlled by Midea; on the other hand, the downswing of Little Swan is down in the industry. Miniature, even if it is reorganized, it is difficult to change.
Industry shuffling is coming
Although neither side has disclosed the reorganization direction of Midea Group and Little Swan, the reorganization of the two will have a major impact on the future pattern of the home appliance industry (especially the washing machine) but it is foreseeable.
'As the competitiveness of Little Swan strengthens, as the industry's second child hits the industry first, jeopardizing Haier's leading position, or will lead to changes in the washing machine competition pattern.' Liang Zhenpeng told reporters.
According to statistics from Aowei.com, the average price of washing machines has increased by 244 yuan since January 2017, and the average price has increased by 621 yuan. The online and offline prices have continued to rise. In the first half of this year, the product structure The impact of the upgrade, washing machine retail sales decreased by 0.4%, while retail sales increased by 5.9%.
Liu Buchen, an analyst in the home appliance industry, said that in addition to kitchen appliances, most home appliances are increasingly difficult to achieve a total breakthrough. But this does not mean that the dominant companies will lose the opportunity to develop. In the future, the dominant companies will still Sustained development, its increment is not from making big cakes, but from grabbing market share from inferior companies, 'we shouted for many years of 'shuffle', really come.'